SRO-EA/Rwanda Market Access study to Ghana & Ivory Coast at United Nations Economic Commission for Africa (UNECA): (Deadline 23 June 2021)

SRO-EA/Rwanda Market Access study to Ghana & Ivory Coast at United Nations Economic Commission for Africa (UNECA): (Deadline 23 June 2021)

RESULT OF SERVICE

Increased awareness for Rwanda on procedures and opportunities for market access for `Rwanda’s products within the AfCFTA; specifically for Ghana & Ivory Coast.

WORK LOCATION

Kigali

EXPECTED DURATION

The consultancy contract is planned for two months starting from 1 July 2021 to 30 August 202. The timeframe of this consultancy is important, and it is essential that the results will be delivered on time.

The assignment will be completed in 2 months. The total professional fees for the assignment will be US$ 20,000 to be paid in two (02) equal installments. The first installment of US$ 10,000 will be paid after the submission of a satisfactory first draft of study report and related Plan.

The second and final installment of US$ 10,000 will be paid after the submission of a satisfactory final market access study and related Plans, in addition to the contribution to the organization of validation workshop that the ECA, and the MINICOM will agree to facilitate.

DUTIES AND RESPONSIBILITIES

1.0 Introduction

United Nations Economic Commissions for Africa was established by the Economic and Social Council (ECOSOC) of the United Nations (UN) in 1958 as one of the UN’s five regional commissions, ECA’s mandate is to promote the economic and social development of its member States, foster intra-regional integration, and promote international cooperation for Africa’s development.

ECA’s mission is to deliver ideas and actions for an empowered and transformed Africa, informed by the 2030 Agenda and Agenda 2063. The mission will be guided by ECA’s five new strategic directions which are advancing ECA’s position as a premier knowledge institution that builds on its unique position and privilege to bring global solutions to the continent’s problems and take local solution to the continent; developing macroeconomic and structural policy options to accelerate economic diversification and job creation; designing and implementing innovative financing models for infrastructure, and for human, physical and social assets for a transforming Africa; contributing solutions to regional and transboundary challenges, with a focus on peace security and social inclusion as an important development nexus; advocating Africa’s position at the global level and developing regional responses as a contribution to global governance issues.

1.1 Background

Market access and integration is fundamental in enabling countries to participate effectively in any international trading agreement. Market access issues are grouped into three categories, namely; physical access to markets, market structures and business competitiveness (in terms of skills, business development services, market information, technology, access to financing among other supply side factors). The Agreement establishing the African Free Trade Continental Area (AfCFTA) was signed in 2018 in Kigali and Rwanda has been a champion in AfCFTA issues since to unlock bottlenecks to both productivity and market integration. The Economic Commission for Africa (ECA) conducted market access studies on Rwanda’s trade with Lagos Nigeria, (DRC), Gabon, and Congo Brazzaville in 2017 and has provided support to the Government of Rwanda (GoR) to develop draft strategies for AfCFTA implementation and Economic Diplomacy in 2020 to enable Rwanda to benefit from the continental market opportunity.

Rwanda’s intra-Africa trade has been increasing over the years, with export to Africa expanding by around 50% over the last five years, from RWF 108 billion in 2015 to RWF 160 billion in 2019, before a sharp decline following the covid-19 outbreak in 2020. DRC accounts for more than 70% of Rwanda’s total exports to Africa over last five years. Exports to the EAC has averaged 25% of total export with the rest of African accounting for the remaining 5%. Rwanda as a land-linked country faces market access constraints that continue to undermine her market share for both imports of intermediate goods that are required for industrialization and export potential within the AfCFTA market, although the services sector has continued to perform well especially in tourism, ICT and financial services. Trends in intra-Africa trade suggest that EAC, DRC, South Africa, Egypt, and Ethiopia are Rwanda’s key potential trade partners.

Prior studies have identified agro-products, mining and minerals, construction materials, leather, textile, processed metals and processed fuels, and services (with focus on tourism, distribution and logistics, financial services and air transport) as Rwanda’s revealed comparative advantage for the trade sector.

In terms of competitiveness, Rwanda continues to make remarkable progress in improving its investment climate as shown by the World Bank Group Doing Business rankings to 2nd place in Africa and 38th globally. The Ministry of Trade and Industry in collaboration with Rwanda Revenue Authority with support of TradeMark East Africa established the Rwanda Online Trade portal to provide key information to exporters and importers.

However, despite impressive improvements in its investment climate, Rwanda’s access to markets is still significantly constrained by several bottlenecks, including trade competitiveness (structural and trade facilitation constraints for example, high transport costs, high energy cost, high cost and limited diversification of capital, low skills and firm productivity as well as persistent Non-Tariff Barriers in destination markets), low levels of value chain integration at both regional and continental levels and of course geographical remoteness.

Against this background, the Ministry of Trade and Industry (MINICOM) has requested ECA for support to undertake market access studies to position Rwanda in a more competitive position for market development in line with her National Strategy for Transformation aspirations for expanding trade connectivity, developing an export-oriented economy, and ultimately, achieving middle income status by 2035.

1. Rationale of the consultancy

This consultancy will build on prior work to (i) instruct and advise the private sector on the key opportunities and bottlenecks which exist in key export markets in Africa, and (ii) how to take advantage of the market access liberalization from the AFCFTA;

2. Duties and Responsibilities

The main study is to understand the market access procedures of the above markets and analyze Rwanda’s potential in penetrating them.

Specific objectives

• Analyze demand for potential products in the above countries;

• Analyze the capacity of firms in Rwanda to satisfy the market demand for the commodities identified products and markets;

• Analyze options and costs for market entry and distribution for commodities including transport costs and options, standards and health requirements and distribution options in the target market.

• Propose various mode of distribution for these products into the selected markets;

• Identify general norms, standard, customs procedures, duties, levies, and costs associated with importation, and technical requirements for trade to take place in the identified markets;

• Identify the challenges encountered in importation into those markets and behind the border barriers to trade;

• Analyze the specific services sectors for Rwanda to benefit and the regulatory requirements to penetrating;

• Include the costs, business and investment procedures, standards, norms, principles, regulations, sales and marketing opportunities of penetrating markets for select service providers.

• Understand the investment codes of identified markets

The study will be conducted under the direct supervision of the ECA Sub-Regional Office for East Africa and MINICOM. It will be anchored on both primary and secondary data.

Primary data will be compiled through extensive consultations with targeted GoR stakeholders, private sector, and academia. The consultant will generate raw data from field responses considering research questions on how major distribution channels/value chains are organized locally, regionally and internationally; the business development services required; and the barriers to market entry faced by Rwandan producers. The field research will also elaborate the readiness of Rwandan firms to both supply and access the priority markets under investigation.

Secondary data will be compiled through desk reviews of prior studies, policies, strategies, reviews, regulations, and procedures on supporting business and market development for Rwanda into select markets.

The following steps will guide the work of the consultant;

Prepare an inception Report: The consultant will prepare an inception report within a week of signing the contract. The inception report will outline an understanding of the scope of the assignment as well as the issues to be investigated. The inception report will also include a work plan indicating the phases in the study and report preparation, key deliverables and milestones and an annotated outline of the structure of the study report;

Conduct a Review of literature for business and market intelligence;

Collection of data and drafting of the market access study report:

QUALIFICATIONS/SPECIAL SKILLS

Academic Qualifications: • The consultant should have a master’s degree in international trade, law or economics;

• Should have a specialized training in international trade, business development or value chain analysis; Knowledge of sectoral markets analysis is required.

• The consultant must have handled Projects with similar nature.

• The consultant should demonstrate with certificates of completion of at least three (3) similar assignments/projects.

Experience: • At least 10-15 years of experience working with developing countries on activities to strengthen capacity and enhance market access.

• 10 years’ work experience with similar assignments in Rwanda or other developing countries.

• Knowledge of regional economic block and African markets.

Language: • English and `French are the official working languages of the UN. For this assignment, fluency in English is required.

NO FEE

THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.

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