Private Sector Federation (PSF) in Rwanda has played a crucial role in the country's economic transformation over the past 25 years. From advocating for business-friendly reforms to driving local production through initiatives such as the "Made in Rwanda" campaign, the private sector has significantly contributed to Rwanda's economic resilience and competitiveness. With reforms focusing on research, advocacy, governance, and capacity development, the private sector has become a key driver of Rwanda's Vision 2020 and beyond, leading to a shift towards a service and industry-led GDP.
PSF has undergone major reforms to create a more inclusive and supportive business environment in Rwanda. The Golden Circle, an elite club of industry leaders under PSF, has been vocal about the importance of advocacy in the business landscape. Through collective efforts and strategic partnerships, the Golden Circle members have influenced significant policy reforms, tax contributions, and economic advisory services. Advocacy efforts have led to reforms in areas such as land and property taxes and VAT, enhancing the business climate in Rwanda.
As Rwanda continues its journey towards economic growth and development, the private sector remains a key player in driving innovation and creating job opportunities. With favorable government policies, strategic investments, and a focus on sustainability, Rwanda is positioned to become a significant player in the regional and global economy. The private sector's active role in advocating for reforms, fostering a supportive business environment, and driving economic growth highlights its importance in Rwanda's long-term development aspirations.
Experts highlight how foreign direct investments have been crucial in driving the growth of sectors like tourism, agriculture, manufacturing, and construction in Rwanda. With a focus on private sector involvement, Rwanda has seen significant progress, especially in the service and agriculture industries. Private businesses have played a vital role in the country's development, contributing significantly to the national budget through tax payments. The recent reforms aim to create an environment where the private sector can continue to support Rwanda's growth effectively.
The private sector in Rwanda has also been instrumental in promoting the «Made in Rwanda» initiative, fostering local manufacturing, and enhancing industrial output. While there has been progress in reducing the trade deficit, recent challenges like the COVID-19 pandemic have impacted global trade dynamics. The Private Sector Federation (PSF) has been proactive in attracting investments and fostering partnerships in various sectors like agribusiness, affordable housing, and mining, contributing to economic resilience and growth.
Through strategic trade missions and initiatives, PSF has significantly expanded the global reach of Rwandan businesses, creating new opportunities and partnerships across various countries. These missions have resulted in new business relationships, agreements, and investments that have boosted Rwanda's presence on the international stage. PSF's advocacy efforts and trade missions continue to play a vital role in fostering economic growth, enhancing market access, and facilitating business collaborations on a global scale.
Rwanda has made significant progress in rebuilding its economy, with the three-week event mainly showcases products in various sectors such as ICT, banking and finance, agribusiness, arts and crafts, infrastructure, automotive and general trading. Over the past 25 years, Expo Rwanda has seen significant evolution in the number and diversity of exhibitors, both local and international, as well as in visitor attendance. According to PSF, Expo Rwanda has become a strategic platform for major businesses worldwide to enter the Rwandan market. This is facilitated through Business to Business (B2B) and Business to Government (B2G) meetings, fostering significant economic interactions and growth.
The availability and accessibility of animal protein sources have significantly increased in Rwanda, particularly in the poultry industry, thanks to the investments made by the private sector. By 2012, professional chicken farming had commenced in the country, reducing the reliance on imports for day-old chicks and poultry products. With the establishment of several hatcheries, local production capacity has expanded, leading to a decrease in the importation of day-old chicks, eggs, and meat. The collaboration between the private sector and government entities, such as the Private Sector Federation (PSF), has been instrumental in driving the growth of the poultry industry in Rwanda.
Moreover, PSF has played a critical role in driving growth and innovation across various sectors in Rwanda. Companies like New Kigali Designers and Outfitters have expanded significantly, empowering women and youth through employment and training opportunities. In industries such as wood processing, leather products, automobile services, and cross-border transport, PSF’s advocacy and capacity-building efforts have fostered industry transformation, with associations benefiting from skills enhancement, market access, and policy support. In private healthcare, PSF collaborates with RPMFA to improve healthcare services, promote investment, and enhance industry standards.
Drawing from insights from the PSF’s Business Research Agenda 2021, Business Research Centre(BRC) was established in 2022 to address the scarcity of evidence-based data and the need for comprehensive research initiatives. With a mandate to conduct business research and development activities, the BRC aims to empower the private sector with evidence-based insights for informed advocacy, operating under the Executive Director’s Office with support from various units such as Research and Analysis, Quality Assurance and Partnerships, Green Economy and Environment, Outreach and Communication, and Finance and Accounting. Researchers utilize surveys, interviews, and trend analysis to drive success through reports, policy briefs, and innovative business models.
BRC collaborates closely with PSF, advocating for tax reductions and other policy changes for PSF members. Through partnerships and grant funding, the BRC has facilitated notable initiatives, such as advocating for tax reductions, addressing challenges posed by proposed taxes, and initiating projects like single-use plastic collection. The centre's efforts extend to capacity-building activities, securing funding through grant proposals and supporting PSF’s initiatives, all while engaging in coordination with key partners to drive impact across Rwanda's business community.
PSF also established a private company, Imanzi Business Institute (IBI), as PSF’s exclusive capacity-building arm, offers cutting-edge training courses to empower the private sector. With a focus on professional skills training, business acceleration, and mentorship for African entrepreneurs, IBI has trained over 6,000 companies in various areas like business leadership, taxation, e-commerce, and gender equality. By organizing study tours and offering consultancy services, IBI plays a vital role in enhancing Rwanda’s business landscape, fostering innovation, and boosting productivity—a testament to the transformative impact of capacity-building initiatives.
As the Private Sector Federation (PSF) celebrates its 25th anniversary, cluster chairs highlight progress and future prospects in agriculture, industries, services, trade, women, youth, and people with disabilities. Emphasizing the need for more effective agriculture-specific policies, the agriculture cluster aims to achieve food security, boost exports, and establish an agriculture fund to address financing issues. The industry cluster envisions producing internationally acclaimed products, while the specialized cluster targets inclusive growth for women, youth, and people with disabilities, advocating for policies that promote inclusivity and innovation in entrepreneurship. The trade cluster focuses on sustainable business practices, growth opportunities, and celebrating trade success, highlighting the private sector’s continual evolution and aspirations for future growth.