Rwanda’s exports to EA rise 31pc

Workers in Kigali offload goods imported from other East African countries. While the country’s exports to the region increased to $157.52 million last year from $120.15 million in 2015, imports still outweigh exports. PHOTO | CYRIL NDEGEYA 

By KABONA ESIARA

In Summary

• Rwanda’s exports to the EAC increased to $157.52 million in 2016 from $120.15 million in 2015.
• The leading exports include tea, which is sold at the Mombasa auction, and petroleum product re-exports to Burundi.

Rwanda's exports to the East African Community member states have grown by 31.1 per cent in value, boosted by growing fuel re-exports to Burundi.

However, the country’s imports from the region still outweigh its exports.

Rwanda’s exports to the EAC increased to $157.52 million in 2016 from $120.15 million in 2015.

“The growth trajectory is going to be sustained in the near and mid-term future as non-tariff barriers are removed and countries enforce free trade protocols,” said Francois Kanimba, Trade, Industry and East Africa Community.

“We are seeing many foreign direct investments in Rwanda aimed to set up industries here and supply regional markets,” Mr Kanimba said.

Rwanda’s leading exports in the region include tea, which is sold at the Mombasa auction, and petroleum product re-exports to Burundi.
Other export commodities include raw hides and skins exported to Kenya, motor cars, mostly re-exported to Burundi and sorghum exported to Uganda.

The oil re-exports to Burundi expanded by 292 per cent after a major oil marketer in Tanzania cut supplies to the troubled country, according to trading statistics released by National Bank of Rwanda.

“This is due to the fact that in 2015, Burundi imported some petroleum products from Total Tanzania, but the company operations in Tanzania closed,” said John Rwangombwa, Governor of the National Bank of Rwanda.

Oil re-exports to Burundi raked in $25.35 million in 2016, compared with $6.46 million in 2015.

The fuel storage capacity the government has jointly built with the private sector has made Rwanda attractive to oil marketers who store the fuel before exporting it to Eastern Democratic Republic of Congo and Burundi.

Rwanda’s fuel storage capacity has grown from 74 million litres in 2015 to 96 million litres last year after Societe Petroliere added a 22 million litres fuel storage facility last year.