SEVERAL companies have shown an interest in investing in Rwanda's free trade zone following the Cabinet's endorsement of the creation of the zone in April.

"Companies from Kenya, China, Mauritius and Rwanda have already applied to have transit sheds in the free trade zone," said Rwanda Revenue Authority, Commissioner General James Musoni.

Mr Musoni said that his government realised the challenges of the zone and had estimated that investment in infrastructure development, electricity, roads and other facilities would cost not less than $4 million. He also said the Customs administration would have to deal with compliance from business people and look out for dumping of goods using the free trade zone as an excuse.

"It is a challenge to the Customs administrations because business people will dodge taxes. We also know that goods designated for other countries may end up being dumped in the Rwandan market," said Mr Musoni. 

Mr Musoni said the free trade zone in Kigali would be operational by June this year and will create 2,000 jobs. 

"The free trade zone will improve the country's export performance, diversify its production and exports, and promote greater employment and higher, self-sustaining economic growth," said a trade analyst.

Tanzania has an operational EPZ. When Rwanda's EPZ becomes functional, Uganda will be the only country in the region without one. 

Mr Musoni led a Rwandan delegation to Uganda to attend a Northern Corridor stakeholders consultative forum meeting in Kampala on April 22. 

Rwanda has offered incentives like duty relief, tax breaks and repatriation of dividends and offering world class security.

An official from Rwanda said the various companies setting up transit sheds in the zone would offer a variety of quality goods to the people of Rwanda.

Trade analysts say a free trade zone in Rwanda would also attract significant foreign direct investment in the country's various sectors, especially given Rwanda's geographic and linguistic position in the East and Central African regions making it an ideal investment hub. 

The country can serve a wider market of at least 40 million people in eastern Democratic Republic of Congo, southern Uganda, western Tanzania and Burundi. 

The people in these areas are multilingual, with most speaking either French, English, Swahili or a mixture of all three.
 

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