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Rwanda abolishes export licenses to boost SMEs and simplify trade processes

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The goal of removing the import and export licenses is to encourage SMEs to expand and join both local and international enterprises

Rwanda has eliminated export licenses to boost the expansion of small and medium-sized businesses (SMEs) and enhance the business environment. According to the Ministry of Trade and Industry, enterprises will no longer need licenses unless the importing nation specifically requests them.

Prudence Sebahizi, the minister of commerce and industry, examined import licenses as part of the 2025 trade reforms, which aim to streamline imports from the East African Community and other nations worldwide.

States grant export licenses to permit the export of particular items to both domestic and foreign markets in predetermined amounts. An essential part of global trade, this license guarantees that exports adhere to international agreements and legal norms. Mr. Sebahizi further told The EastAfrican that export licenses cost our exporters money and effort and cause needless delays.

Some export licenses have evolved into non-tariff obstacles, even though they aid in regulating items that may significantly affect economic stability, foreign policy, and national security.

The minister stated, “Their removal will improve Rwanda’s business environment and allow more exports to take place,” to increase SMEs’ competitiveness. The ruling is a component of larger measures meant to streamline trade procedures and promote economic expansion. According to John Kalisa, executive chairman of the Kigali-based Business Advisory Council, “It is part of the broader Rwanda trade policy, where the country wants to grow her exports from the current level of 15% GDP to 30%.”

The goal of removing those import and export licenses is to encourage SMEs to expand and join both local and international enterprises. Additionally, Rwanda is promoting entrepreneurship as part of its Doing Business initiative. Another change brought about by the reforms is that import licenses will now only be granted for high-risk goods.

Regulatory agencies such as the Rwanda Food and Drug Authority, Rwanda Inspectorate, Competition and Consumer Protection Authority, and Rwanda Standards Board will now extend the validity of quality and safety licenses and permits for five years.

“The new terms do not apply to licenses pertaining to the import of drugs, vaccines, or medical devices, although they will be renewed upon adherence to regulatory criteria. We anticipate that this modification will speed up the import procedure for low-risk commodities and lower regulatory barriers,” Kalisa stated.

Service fees for SMEs have been eliminated to encourage domestic industries. Larger businesses must pay USD 71.46 (Rwf100,000) in service costs to the National Treasury through the Rwanda Standards Board account.

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