President Kagame said that the government of Rwanda has put forth a conducive environment for investment and is currently ranked second on the continent in doing business.
“We have made efforts in attracting investors and the World Bank has ranked Rwanda in the top African countries with the most favorable trade environment.”
Rwanda is also ranked 29th on the World Bank list of countries with a favorable investment climate. This has helped Rwanda to fully harness its economic potential and maximize the benefits of private investment.
President Kagame said that the future promises growth in Intra-African trade by 50% and that is set to establish a competitive market favorable for enhancing market competition and stimulating investment for business-led growth.
“AfCFTA has become a reality and that implies strong political will and supports the dream of a united Africa.”
During the summit, Rwanda listed its first local currency bond on the London Stock Exchange (LSE) worth $40 million.
Different institutions from Rwanda attended the summit including Bank of Kigali, Enterprise Urwibutso, Mara Phones, Rwanda Finance Ltd, Ampersand, Cogebanque, Africa Improved Foods, and Water Access Rwanda.
What to expect with the African Continental Free Trade Area (AfCFTA)
A World Bank report released in December 2019 on the AfCFTA showed that the common market would benefit the African continent in different ways.
The African Continental Free Trade Agreement which was signed by 44 African countries on March 21st, 2018 in Kigali shows that a single market for goods and services across Africa will lead to poverty reduction. At least 30 million Africans (1.5% of Africans) will rise above the poverty line.
The report shows that 12 million people in West Africa, 9.3 million in Central Africa and 4.8 million in East Africa will rise above the poverty line. The AfCFTA has the potential of lifting 67.9 million Africans (3.6% of Africans) to middle income status by 2035. That is a $5.50 income per day.
The World Bank currently reports that 415 million Africans live in extreme poverty, earning only $1.90 per day.
The AfCFTA will connect 1.3 billion African citizens from 54 countries and is expected to generate $3.4 trillion annually.
The Continental Free Trade Area was established in the capital of Niger, Niamey and will start operating on July 1st, 2020. This trade bloc will improve Intra-African trade and definitely solve the problem of food import in Africa.