Rwanda Minister for Trade and Industry Francois Kanimba has said, application of technology is likely to bolster the country’s trade growth thus enabling the economy transform to middle income by 2020.
Through easing doing businesses through cutting down costs, red tape procedures, as well as reduction in time wastage, Kanimba believes that more businesses would rise which will thus facilitate trade growth.
“Access to capital for small and medium-sized enterprises (SMEs), for instance, has increased through a common credit tracking system,” Minister Kanimba noted
The government embarked on strengthening technology to help boost its use as result speed up processes and make them more transparent, something seen to bolster the buoyant economy that grew.
Some reforms, the Minister says that have already been put in place andwould register positive impact towards trade growth include on line business registration that helps one to register business in only six hours.
Moreover, the recent move by Rwanda Revenue Authority-RRA to help SMEs to pay taxes using their mobile phones is another step to boost trade.
Land registration has also been computerized and linked with the business registration, which has been useful for businesses when they apply for loans, The Minister noted
Through this, the government looks at easing doing business to attract more investors while also boosting the Small and Medium Enterprises-SMEs to help in job creation as well as reducing imported products and increasing export base.
The country is currently struggling to close the widening trade deficit that stands at 7.5 percentages.
There is optimism, experts say that the application of technology by businesses, efforts to boost export base would help the country to balance its trade receipts.
“By Large, when businesses adopt technology which is of course at their level in terms of capacity, it is promoting efficiency and profitability,” said Davis Mukiza, a business Consultant.
Moreover, with the application of technology, experts assert that challenges such as lack of access to market information, transaction costs, and lack of skills would be addressed to pave way for trade growth.