Home » PM Nsengiyumva Tells Small Businesses to Think Big as East Africa’s Markets Expand

PM Nsengiyumva Tells Small Businesses to Think Big as East Africa’s Markets Expand

by Sam Nkurunziza

Prime Minister Justin Nsengiyumva wants inspecting stalls at the 26th East African Community (EAC) Micro, Small and Medium Enterprises (MSMEs) Trade Fair in Kigali.

KIGALI – East Africa needs nearly 290 million pairs of shoes every year, but manufacturers across the region produce only about 17 million. That gap is an opportunity for the region’s small businesses to grow into industries capable of supplying a much larger market.

Prime Minister Justin Nsengiyumva wants small businesses to be part of that transformation, not remain confined to the modest production levels at which many currently operate.

At the 26th East African Community (EAC) Micro, Small and Medium Enterprises (MSMEs) Trade Fair in Kigali, he cited a Rwandan shoe manufacturer with an annual capacity of 6,000 pairs, an example of enterprises that could grow with the right support.

The 26th East African Community (EAC) MSMEs Trade Fair is also known as the Jua Kali / Nguvu Kazi Exhibition.

“We want these MSMEs to grow up. We want you to be billionaires, and we are here to help. Government institutions and financial partners are ready to help small enterprises expand their capacity and take advantage of the wider regional market,” Nsengiyumva told exhibitors.

The fair, running from October 30 to November 8 under the theme Advancing Regional Value Chains in Leather and Horticulture, has brought together 1,500 exhibitors from across East Africa and beyond.

Its focus reflects two sectors with considerable potential to create jobs, strengthen regional production and reduce reliance on imported finished goods.

Available statistics indicate that regional demand for footwear rose from 130 million pairs in 2017 to nearly 290 million in 2024, while local production stood at about 17 million pairs. Demand is projected to reach 385 million pairs by 2030.

With the challenge to connect that demand to businesses able to produce competitively at scale, Nsengiyumva called for greater investment in processing, footwear manufacturing and finished leather products, rather than allowing the region’s hides and skins to leave as raw materials.

The growth of MSMEs is link to Rwanda’s wider economic ambitions, including the creation of 250,000 jobs annually and increasing non-traditional exports from US$1.4 billion to US$3.2 billion over five years.

In horticulture, the PM highlighted the need for better storage, cold-chain facilities, packaging, processing and distribution to help producers reach larger markets.

From National Exhibitions to Regional Value Chains

EAC Deputy Secretary General in charge of Customs, Trade and Monetary Affairs, Annette Mutawawe addressing exhibitors.

For the first time, exhibitors at the fair have been grouped by economic sector rather than by country, an arrangement intended to encourage partnerships among businesses working in the same value chains across national borders.

EAC Deputy Secretary General in charge of Customs, Trade and Monetary Affairs, Annette Mutawawe said the change marked a shift from simply displaying products towards building commercial relationships that could strengthen regional production.

“We are moving from showcasing products primarily by country to connecting businesses by sector. From individual national exhibitions to opportunities for regional collaboration and from displaying products to creating stronger regional value chains,” she noted.

Agriculture contributes more than a quarter of the EAC’s combined GDP, while leather and horticulture offer opportunities to connect farmers, processors, manufacturers, distributors and retailers across partner states.

The success of that integration, however, also depends on whether businesses can move goods efficiently and access markets beyond their home countries.

Mutawawe said border crossing times had been reduced by up to 70 per cent, while transit time under the single customs territory had fallen from 18 days to four. She also cited a 44 per cent increase in EAC exports to the rest of Africa, which reached US$7.2 billion.

The effort to expand regional trade is also placing greater emphasis on women entrepreneurs, whose participation is essential to making integration more inclusive.

Sixteen women from the eight Partner States were recognized as champion mentees under the EAC Women in Trade Champions Initiative, a six-month program designed to strengthen their understanding of regional trade policies, market opportunities and cross-border procedures.

The initiative reflects a broader ambition to move women beyond participation in local commerce and equip them to build businesses that can compete across the regional market.

As Mutawawe put it, the goal is for East Africans to increasingly consume products made within the region and support businesses that operate across national boundaries.

“Our task is to ensure that the next generation of East Africans wear shoes made in East Africa, eat foods processed in East Africa and build businesses that cross every border in East Africa and beyond,” she remarked.

Making Trade Easier to Understand

Dr Caroline Asiimwe, Executive Secretary and CEO of the East African Kiswahili Commission speaking to the media.

Access to markets depends on more than roads, customs systems and finance. Businesses must also be able to communicate with customers, suppliers and institutions in other countries.

Dr Caroline Asiimwe, Executive Secretary and CEO of the East African Kiswahili Commission, said language remains an important part of regional integration, particularly for small traders who need to understand customs requirements, tariffs, trade procedures and information from EAC institutions.

“Traders need to understand the policies, the procedures and the information that govern regional trade. Without effective communication, they cannot fully take advantage of the opportunities created by regional integration,” she said.

Kiswahili’s adoption as an official EAC language alongside English provides a foundation for wider communication, but more needs to be done to make regional trade information accessible to people in languages they understand.

The Commission is exploring digital innovations, including artificial intelligence, to help traders access information and services across language barriers.

Asiimwe warned that African languages risk being left out of the digital ecosystem unless institutions invest in their development and use.

For the small manufacturers and producers, the immediate opportunity lies in turning regional demand into orders, investment and expanded production. The wider goal is to make East Africa a market in which its own businesses can supply more of what its people consume.

Visited 1 times, 1 visit(s) today

You may also like

Leave a Comment