Rwanda has furthered business partnership with three countries that are set to help it deal with trade barriers.
Cabinet, on April 10th approved three draft laws approving the ratification of the Agreement between Rwanda and countries that in most cases have access to the sea.
The first provision is a Draft Law approving the ratification of the Agreement between the Government of the Republic of Rwanda and the Government of the Republic of Djibouti concerning the reciprocal promotion and protection of investments, signed in Djibouti, on 18/04/ 2017.
Another is Draft Law approving the ratification of the Trade Agreement between the Government of the Republic of Rwanda and the Government of the Federal Democratic Republic of Ethiopia, signed in Addis Ababa, Ethiopia on 13/08/ 2013.
Also in this context, cabinet approved a Draft Law approving the ratification of the Agreement between the Government of the Republic of Rwanda and the Government of the Kingdom of Morocco on the reciprocal promotion and protection of investments, signed in Kigali, Rwanda on 19/10/2016.
Why is the move relevant for Rwanda?
Rwanda has a special bond with the three strategic countries involved in these agreements.
For example in the case of Djibouti, trade agreement between both countries is taking shape.
Djibouti President Omar Guelleh was in Rwanda in March 2016, for two-day visit that opened Rwanda to the Arab World.
Guelleh toured a 20 hectares plot of land that was given to his country in Kigali special economic Zone. Meanwhile, his country also gave Rwanda 25 hectares plot of land on the red sea, which gives Rwanda a good access to Arabic countries across the sea.
“If we have that location developed we will be served well in a number of ways including; exploitation of the area by having Rwandan goods arrived at the port and even carried by air,” President Paul Kagame told the business community then.
In April 2017, Kagame was also in Djibouti, accompanied with Minister of Foreign Affairs, the then trade minister among others, and several agreements were signed.
They include a bilateral agreement on exoneration of visa fee for diplomatic and service passport holders between both countries.
In other agreements, Rwanda will also benefit from trade partnership with Ethiopia, a country with developed industrial sector.
Rwanda and Ethiopia have the same understanding of investment in Africa that “it presents fewer risks to invest in Africa than elsewhere.”
Meanwhile, another outstanding agreement with Morocco is an outcome from one of the 22 deals that were signed in the presence of King Mohamed VI of Morocco in a visit in Rwanda and President Paul Kagame, 2016.
The Maghreb country with access to Mediterranean Sea signed several deals with the private sector and government itself.
For example, a company from Morocco will build 5000 housing units destined to middle and low income earners to support the Kigali’s affordable housing program.