CONTEXT AND CHALLENGES
Accelerated digital transformation: the shift to e-business
In today’s digital age, technology has revolutionised how we buy and sell goods and services. The Covid-19 pandemic accelerated this shift, pushing businesses worldwide to embrace e-commerce faster than ever. This transformation is creating new global opportunities for trade, with e-commerce emerging as a powerful tool for inclusive and sustainable growth.
Rwanda has been at the forefront of this shift towards e-commerce in Africa – aiming to become a regional hub for innovative digital solutions. With strong government support, the country has invested in cutting-edge digital infrastructure and forward-thinking policies to harness the potential of online trade.
Small and medium sized enterprises (SMEs) are integral to Rwanda’s economic development agenda, driving inclusive growth, job creation and poverty reduction. However, many of Rwanda’s SMEs still face challenges accessing the e-commerce landscape. Without the resources of larger businesses, SMEs need more than just a website to succeed – they require robust logistics, payment solutions, and customer trust to seize the growth opportunities within the e-commerce sector.
Recognising these hurdles, the Rwandan Ministry of Trade and Industry (MINICOM), together with Invest for Jobs launched the “Rwanda: Enabling the Future of E-Commerce" initiative (2020-2024) to build an enabling and inclusive ecosystem for e-commerce in Rwanda.
PROJECT APPROACH AND PROJECT GOALS
Collaborating to create an enabling
environment for e-commerce
This transformative initiative successfully developed Rwanda’s first inclusive e-commerce platform, RwandaMart, enabling SMEs to enter the online market with minimal costs.
In addition, a state-of-the-art fulfilment and e-commerce service centre was developed in collaboration with key public and private partners, streamlining logistics, payment services, and customer support for SMEs. This E-Commerce Centre, which is located at the Rwandan Post offices in Kigali, provides essential infrastructure that many SMEs lack, enabling them to quickly move their business online, promote their goods and services and create new sales in Rwanda and beyond. Through Infrastructure-as-a-Service, SMEs gain access to key resources such as warehousing, faster delivery solutions, and advanced digital tools for online sales.
The E-Commerce Centre features:
· A warehouse to store inventory at reduced costs with faster delivery capabilities.
· A trader lab for rapid prototyping and improved packaging.
· A digitisation studio for high-quality product imagery and online cataloguing.
· A training facility to equip SMEs with the skills needed for e-commerce success.
Complementing the E-Commerce Centre, the RwandaMart marketplace operates on simple, open-source technologies that can be locally maintained. Supporting both Business-to-Consumer (B2C) and Business-to-Business (B2B) transactions, the platform is designed for easy booking, service management, and subscription handling.
The marketplace is further empowered by a comprehensive legal, fiscal, and logistics framework. By leveraging local and foreign company registrations in the EU and US, the initiative simplifies export and import processes, opens access to global payment solutions, and provides SMEs the opportunity to list on international e-commerce platforms.
Additionally, the initiative has invested in rich media content to help SMEs drive traffic and sales with minimal upfront costs. High-quality visuals and media assets ensure that businesses stand out in the competitive online marketplace.
STATUS AND OUTLOOK
More than 1,000 jobs created
Officially launched by the Rwandan Ministry of Trade and Industry in June 2023, RwandaMart has onboarded over 900 SMEs as part of the initiative, offering them an affordable gateway to digital trade both within Rwanda and globally. Due to the initiative supported by Invest for Jobs, the participating SMEs were empowered with the requisite knowledge, skills and resources to foster sustainable business growth and seize the opportunities within the e-commerce sector. As a result, the SMEs were able to create 1,022 new decent jobs, 501 of them for women, and increase the salaries of 1,621 of their employees, 860 of them women, due to the SMEs’ increased competitiveness.
Looking back on her involvement in the initiative, Odelice Ineza Vania, Founder & CEO of the fashion company IVO Ltd, explained: “My experience with RwandaMart has been transformative, both personally and professionally. The platform provided us with a powerful avenue to showcase our products and connect with a wider audience. From strategic guidance to logistical support, the RwandaMart team has been instrumental in our growth journey.”
In April 2024, the Invest for Jobs supported initiative was officially handed over to the Rwandan Post Office, ensuring its long-term sustainability. Thus, interested Rwandan SMEs continue to have the opportunity to sell their products and services online and increase the competitiveness of their business.
The initiative “Rwanda: Enabling the Future of E-Commerce” was supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in the context of Invest for Jobs on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
