Private sector players have urged the newly elected leadership of the Private Sector Federation (PSF) to prioritise reducing business costs, strengthening local production, improving access to finance, and boosting collaboration across industry clusters. On Friday, March 13, the federation elected a new committee that will lead the organisation for the next three years. ALSO READ: Who are the new top PSF leaders? Businessman François Twagirumukiza, who has 28 years of experience in business, was elected Chairperson. He will be deputised by First Vice Chairperson Jean-Claude Uwizeyemungu, owner of Mahwi Grain Millers, and Second Vice Chairperson Diane Mukasahaha, an entrepreneur and public health expert with more than 20 years of experience in health systems strengthening, HIV/AIDS prevention and palliative care. Interviews with private sector players highlight a range of challenges they expect the new leadership to address across different industries. Transport costs remain a concern Gakuba Shyaka, a player in the services sector involved in logistics and cross-border trade, said rising transport costs remain a major challenge for businesses. “There has been collective investment in past years, and we need that to continue,” he said. According to Shyaka, high transport costs affect multiple sectors of the economy. “When transport costs are reduced, many other sectors benefit positively,” he said, adding that stronger regulation could help stabilise prices. “There is a need for proper regulation so that transport costs can become stable and predictable.” Leather industry seeks local processing Jenuce Mukanyandwi, a leather products manufacturer based in Nyarugenge District, said the leather industry is struggling with a shortage of quality processed raw materials. “We face challenges because high-quality processed leather is not available locally, and the available options are very costly,” she said. ALSO READ: Investors eye leather factories as Rwanda pledges to establish tannery park Mukanyandwi explained that raw hides often leave the country cheaply but return as expensive finished materials. “A square foot of raw hide can cost about Rwf400 when unprocessed, but once it is processed abroad and returns, the price increases sharply,” she said. “For example, mirror-type leather costs about Rwf4,500 per square foot, while producing one pair of shoes requires about three square feet.” She said attracting investors to process leather locally would significantly reduce production costs. Mukanyandwi also highlighted shortages of inputs such as specialised shoe soles. “Sometimes the soles we need are not available because those importing them are not industry producers and may not fully understand what is required,” she said. She suggested that PSF could support collective investment and facilitate international exposure for producers to learn from other markets. Mushroom farmers want processing and financing Leonidas Mushimiyimana, Chairperson of the Mushroom Farmers Association, said mushroom producers face post-harvest losses due to limited processing and storage capacity. “Mushrooms cannot currently be stored for long, and that causes farmers to incur losses,” he said. As a result, farmers are often forced to sell immediately instead of waiting for better market prices. Mushimiyimana also pointed to a gap between local production and domestic consumption. “Some hotels still import mushrooms while local producers exist,” he said, calling for stronger links between farmers and local markets. The sector is largely driven by youth and women, who account for about 70 per cent of participants, but access to finance remains difficult. “Commercial banks still do not fully trust mushroom farming,” he said. He also stressed the importance of stronger collaboration between industry chambers. “For example, mushroom farmers depend on rice bran as a key input, which requires stronger linkages with rice producers. Strengthening cooperation between clusters would benefit everyone.” SMEs seek stronger institutional support Peter Claver Muhire, Managing Director of Bwiza Coffee Ltd, which processes coffee into products such as coffee wine, said small and medium enterprises (SMEs) need stronger institutional backing from PSF. “For SMEs, we need PSF to act as a form of collateral to help facilitate partnerships,” he said. Muhire explained that many SMEs struggle to meet requirements when importing raw materials or ordering inputs individually. “When you are alone with small investments, it becomes difficult because there are many requirements to meet when importing raw materials or placing orders,” he said. He added that regulatory obligations and environmental standards, including those set by the Rwanda Environment Management Authority (REMA), can also be challenging for small businesses. Importing small quantities individually increases operational costs, he said. “If businesses could order inputs collectively instead of importing small quantities on their own, transport costs would reduce significantly.” Agriculture cluster prioritises technology Jean Claude Shirimpumu, who was re-elected as First Vice President of the agriculture cluster under PSF, said modernising agriculture and attracting investment will be key priorities. “Agriculture remains the main pillar of our economy,” he said. However, population growth is increasing pressure on limited land resources. “The population is increasing, but the land is not. We must use technology to increase productivity in smaller areas,” he said. Shirimpumu said the cluster will promote modern farming practices that allow year-round production rather than relying only on seasonal agriculture. He also called for improved livestock breeding technologies to increase productivity. “With the introduction of agricultural and livestock insurance by the government, investors should not see farming as a risky sector,” he said.
