‘Next Rwanda budget should focus on improving supply chain’

As the sunset hangs over the 2012/2013 financial year, Business Times is seeking views from business people and organisations, as wellas professionals about what they think should be included in the next budget. Today, we bring you suggestions from industrialists and miners.

Pineapples being sent a processing machine. Industrialists want the next budget to allocate more money to enhance the supply chain. The New Times/ John Mbanda

According to industrialists, Rwanda’s economic growth could almost double if the government put emphasis on improving the supply chain.

“The next budget should focus on enhancing the whole supply chain, especially in the agro-processing sub-sector,” Chantal Umuraza, the executive director of the Chamber of Industries, said.

This, she added, would help more than double the country’s economic growth in the coming few years. Rwanda’s economy is presently growing at about 8 per cent annually. The government is targeting 11.5 per cent growth per year.

“The budget should also open up a link between industrialists and farmers. But this can only be achieved if the government improved up-country roads. It should also give more support to agricultural sector, as well as increase access to power across the country,” Umuraza pointed out.

She noted if the budget focuses on helping farmers enhance production, the question of lack of raw materials for the industrial sector would automatically be solved.

“This would ultimately lower the cost of production and consumers would be able to get commodities at affordable prices,” she said.

Umuraza added that the intervention would also help create more jobs for the unemployed youth.

“When the environment is healthy for industrialists to continue investing, more jobs will be created. Besides, more employment means increased purchasing power, hence economic growth,” Umuraza noted.

She also pointed out that industrialists were being hurt by inadequate and erratic electricity supply and lack of cold storage facilities, especially for the horticulture sector.

“We hope those working on next year’s budget will allocate funds to solve these challenges.”

According to the 2012/2013 revised budget, the Ministry of Trade and Industry was allocated Rwf10.5b, while about Rwf66.9b went to the agriculture ministry.

These sectors, according to Umuraza, are very crucial for industrial development. “This is why industrialists want the government to allocate the two sectors more funds to boost their performance and capacity.”

Miners’ say

Louise Mukakalisa, the executive secretary of Rwanda Mining Association, would like the 2013/2014 national budget to put more emphasis on capacity building and attracting more investment into the mining sector.

“There is still shortage of technical skills in the sector and limited investment. The government should, therefore, allocate more funds to develop the sector,” Mukakalisa noted.

She added that the mining industry has a lot of potential that is yet to be exploited, adding that this cannot be possible when it is incapacitated.

By Peterson Tumwebaze, The New Times

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