TERMS OF REFERENCE
CONTRACT TO SUPPORT THE MINISTRY OF TRADE AND INDUSTRY (MINICOM) ESTABLISH A
CROSS BORDER TRADE UNIT WITHIN THE TRADE AND INVESTMENT DEPARTMENT
1. INTRODUCTION
Informal Cross-border trade (CBT) plays an important role in poverty reduction as it provides trading
opportunities for many of poorest and most marginalised members of society, particularly women, who are
the most active traders along Rwanda’s borders. Trade with neighbouring countries also represents the best
export opportunity for many Rwanda firms. The diversity of products Rwanda exports to neighbouring
countries is approximately 10 times more diverse than to Rwanda’s most diverse non-regional export market.
Products exported include agricultural goods produced often by small informal farmers, livestock, meat and
dairy products from Rwanda’s animal stock, processed food from Rwanda’s agro-processing sector, and
manufactured goods ranging from cement, to beauty products and beverages produced in Rwandan factories.
These products are exported informally often on foot by thousands of small traders who operate along the
borders, or are exported formally across the border by trucks.
The full potential of cross-border trade has not yet been met. This is due to number of constraints including:
the cost and time of crossing the borders; inadequate or unsuitable infrastructure which is not designed to
meet export opportunities in neighbouring countries; and a lack of information, skills or finance which would
allow traders and producers to better realise export opportunities.
The Rwandan Ministry of Trade and Industry (MINICOM) has taken action to address these challenges and
increase cross border trade, through the development of a National Cross-border Trade Strategy. The aim of
the strategy is to contribute to creation of dynamic and diversified trade with neighbouring countries, creating
jobs and income in both the formal and informal sectors and ultimately improving the trade balance. While the
strategy identifies several new areas of intervention, there are already a number of on-going initiatives that
support cross-border trade either directly or indirectly. These initiatives are being undertaken by government
institutions, regional institutions, the donor community and civil society organisation. Examples of direct
initiatives include: the establishment of new market facilities in some cross-border market towns; support and
training to CBT cooperatives; establishment of a COMESA Information desk; development of access to finance
facility targeted toward women in informal cross-border trade (WICBT); and the organisation of CBT trade fairs
through PSF and RDB. Examples of indirect support include: producer support programmes (production,
harvesting and post-harvest handling) which in turn increase supply in CBT markets; producer cooperative
training; BDF finance facilities for small businesses; and export support programmes to manufactures.
In order to better coordinate the implementation of these support initiatives and address CBT issues with less
duplication in certain areas, MINICOM is establishing a Cross-border Trade Unit to drive implementation of
cross border trade related activities at a national level. With better coordination, oversight, and
communication of these efforts from a CBT perspective, the impact on CBT could be increased through
efficiency of implementation and better communication of initiatives to final beneficiaries.
2. THE ROLE OF THE CROSS BORDER TRADE UNIT
The CBT Unit will be established within the Trade and Investment Department of MINICOM and report to the
Director General of Trade and Investment. This unit will be responsible for driving implementation,
coordination, monitoring and reporting on Cross-Border Trade activities. The core roles of the unit are the
following:
2.1.
KNOWLEDGE HUB AND INFORMATION CENTRE
The unit will act as a knowledge hub for CBT related issues, with a focus on the following areas:
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Data Collection – The unit will take over the lead role of collecting informal cross-border trade data at
the borders with support from BNR and RRA. The unit will also be responsible for conducting baseline
assessments of trade flows at each of the borders and monitoring the impact of CBT activities on
trade. Additionally, the unit will undertake interviews and surveys of traders, border officials and
other stakeholders at cross-border trade sites and generate knowledge on the dynamics of trade;
Analysis – The unit will undertake studies on issues relevant to cross-border trade as well as
monitoring the impact the different interventions are having on trade and poverty. This will include
drawing in experience and best practice in supporting CBT from other regions of Africa and the world;
Information Dissemination – As knowledge, understanding and learnings are gathered, the unit will
be responsible for disseminating this information to relevant stakeholders;
Mainstreaming – The unit will work to mainstream CBT issues into other national programms such as
cooperative training, E-Soko market information system, national feeder road programmes and
producer support programmes
2.2.
COORDINATION OF STAKEHOLDERS
The unit will oversee coordination of cross-border trade activities across relevant ministries and national
agencies, regional programmes, donor community, civil society organisations (CSOs) and the private sector.
Relevant stakeholders include:
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MINICOM, which is responsible for driving implementation of the strategy and will disburses funds for
construction of market and storage facilities which are suitable for cross-border trade;
The Rwanda Revenue Authority (RRA) which oversees the delivery of CBT sensitisation training
provided to its staff, implementation of activities in the area of border administration and procedures
to reduce time and cost of crossing-border and introduction of simplified procedures for small
traders;
Ministry of Agriculture (MINAGRI), Rwanda Agricultural Board (RAB) and National Agricultural Export
Board (NAEB), which together support the increase of agricultural production vital for supplying
Rwanda’s cross-border markets;
Business Development Fund (BDF) which manages a special informal cross border trade finance
scheme targeted towards women traders as well as ensuring existing schemes are properly
communicated and delivered to traders and producers;
The Private Sector Federation (PSF) who will mobilise the private sector for trade fairs and export
support initiatives;
The Rwanda Development Board (RDB), which is initiating exporter support programmes and delivery
of business development services;
Rwanda Cooperative Agency (RCA), which provides training and support to develop and improve
trader and producer cooperatives;
Ministry of Infrastructure (MININFRA), which oversees the construction of feeder roads to supply
cross-border markets;
The Rwanda Environment Management Authority (REMA) which sets the environmental standards
that impact cross-border trade, for example, requirements for markets on the edge of Lake Kivu;
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Regional Economic Communities (EAC, COMESA and CEPGL), which all have their own programmes to
support cross-border trade;
Donor funded programmes aimed at supporting cross-border trade. Active donors in this area include
DFID, TMEA, UNWOMEN, USAID, WTO EIF and the World Bank;
Civil society organisations who focus on improving conditions for small traders and trade relations
between cross-border communities; and
Traders, trader cooperatives and private firms who trade on a day-to-day basis.
2.3.
IMPLEMENTATION OF ACTIVITIES TO FACILITATE CBT
2.3.1. COORDINATION AND MONITORING CONSTRUCTION OF CBT MARKET INFRASTRUCTURE
According to the CBT Strategy, growth in trade is constrained by poor market infrastructure, inadequate
storage facilities and the fragmented nature of markets in cross-border towns. With the existing infrastructure,
goods cannot be stored close to the border and service providers remain beyond the reach of cross-border
clients. The quality of goods available is also affected by poor market facilities. Efficient and quality crossborder market infrastructure, especially for informal traders who trade in the most basic essential items, can
help establish Rwanda’s cross border trade towns as a nucleus of local economic development for border
communities in Rwanda. The unit will therefore coordinate MINICOM market infrastructure activities:
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Construction of a cross-border market in Rubavu (funded by TMEA), Karongi (EIF), Burera (EIF):
TMEA and the EIF will provide funding for the construction of markets at four border points
mentioned above. Based on the success of Rubavu, TMEA may also fund an additional market in
Rusizi on the border with DRC.
Management and operation of a market place: the unit will propose an optimal management and
operations model for the cross-border markets (either government, private or PPP-led). A key factor
to be determined is whether commercial recovery through subsidised rents can be used for
management/operational expenses.
2.3.2. SUPPORT TO CBT TRADERS AND PRODUCERS FOR CBT MARKETS
The main activities will be to:
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Conduct assessment of capacity and status of existing and proven facilitators of CBT: The approach
may require the unit to undertake in-depth diagnostic work to identify the market constraints.
Following on from this the unit would work with both private sector and civil society organisations
that are active in supporting cross border traders to expand trade. Areas of focus may include ensure
better flow of market information, creation of networks and enhance the rights of CBT traders,
particularly women. Preference will be given to existing facilitators that can operate on both sides of
the border.
Develop a support program specific to the needs of cross-border cooperatives: Based on the
assessment of capacity and status of existing facilitators, programs specific to the needs of CBT
cooperatives should be designed for effective support delivery. One possible program could include
replicating the successful Traidlinks program conducted in Uganda, whereby Traidlinks assisted 12
companies in Uganda to improve their standards, production capacities and marketing strategies. The
program assisted in identifying regional market opportunities for these companies and in increasing
output and profitability.
2.3.3. TRADE FACILITATION
The high cost and time of trading across the border undermines trade and reduces demand for and supply of
Rwandan products and services in cross-border markets. The interventions in this area include:
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Enhance Customs and Border Administration Cooperation: Support existing cross-border customs
administration cooperation committees at border crossings. These committees will facilitate and
improve dialogue between borders officials from both countries on issues such as the harmonization
of opening times, security improvements, and the reduction of trade costs through the harmonization
of border procedures;
Improve Regulatory Environment: Areas to focus on include work to improve and simplify
administration procedures for small traders through promotion of the regional simplified trade regime
(STR), support for CEPGL initiatives to facilitate CBT between DRC and Rwanda, and introduction of
simplified sanitary and phyto-sanitary requirements for small traders, supporting the introduction of
mutual recognition agreements in professional and health services by establishing cross-border
services platforms through the procurement of TA expertise.
Strengthening of trade information desks located at the borders: Support the establishment and
operation of trade information desks at borders for cross border traders.
3. SCOPE OF THE ASSIGNMENT
The scope of the assignment is to support MINICOM establish a CBT unit within MINICOM and support
implementation of activities set out above under the Role of the CBT Unit through the provision of a CBT
Specialist, a local junior economist and management of a drawdown facility to bring in short-term technical
assistance (STTA) as necessary.
Firms responding to this TOR should include the following technical experts
3.1.
PROVISION OF A CBT SPECIALIST
The specific tasks of this assignment are:
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Develop a workplan and management of TMEA budget for delivery of CBT activities based on funding;
Support delivery of activates specified under role of the CBT unit and provide training of staff within
the Unit;
Support coordination of Cross Border related programmes between Government Ministries and
Agencies, regional programmes, the donor community, Civil Society Organisation, and the private
sector;
Monitoring and regular reporting on CBT and initiatives and issues through a mix of quantitative and
qualitative reporting.
Ensuring Local Ownership and Complementarity with other Projects
The TMEA appointed CBT Specialist will work alongside MINICOM’s own internally appointed Cross Border
Trade Personnel. The MINICOM Cross-Border Trade Specialist holds responsibility within MINICOM for delivery
of CBT Unit Activities. MINICOM’s CBT Specialist reports to the head of the External Trade Department.
Ensuring ownership by MINICOM of the CBT Unit is an important component of this project. Part of the task
of the TMEA appointment CBT Specialist will therefore be to work to enhance the capacity of the MINICOM
CBT Expert and ensure MINICOM staff remain engaged and take ownership of all activities of the Unit.
TMEA’s support to the CBT Unit forms part of a much larger programme of support to CBT activities within
Rwanda. It is expected therefore, that the CBT Specialist and Junior Economist not only focus on TMEA
priorities for CBT but rather support in coordinating implementation of all CBT activities run through MINICOM
Q UALIFICATION AND E XPERIENCE
The CBT Specialist should have the following experience:
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Possess a Master’s degree in Economics, Business Administration or other related degree;
Have a minimum of 5 years knowledge and experience in the area of trade;
Knowledge of Informal Cross-Border Trade;
Sound analytical and technical competence in related field and demonstrated skills in quantitative
and qualitative analysis;
Proven ability to deliver on complex projects across a range of stakeholders;
Proven coordination and managerial experience;
Knowledge and experience in formulation of Action Plans and budgeting frameworks;
Strong organisation and communications skills and results oriented;
Fluent in both written and spoken English;
Ability to communicate in French or Kinyarwanda would be an added advantage;
The contract for the CBT Specialist will be for an initial period of 2 years with an option to extend by an
additional year at the end of the contract (220 working days per year).
3.2.
PROVISION OF A JUNIOR ECONOMIST
A junior economist will support the Unit. The purpose of this position is to build local capacity in the area of
CBT related activities.
J UNIOR E CONOMIST Q UALIFICATION AND E XPERIENCE
The Junior Economist should have the following experience:
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Hold an undergraduate or master’s degree in economics, business, or related subject;
Familiar with Microsoft packages;
Organised and be able to work under pressure with an ability to meet deadlines;
Proficient in oral and written English;
Ability to communicate in French or Kinyarwanda would be an added advantage;
Motivate, resourceful and creative;
Works well in a team and can take direction from senior staff;
Good interpersonal skills;
Be a Rwandan National.
The Junior Economist will be contracted full time for a period of 2 years with option to extend by an additional
year at the end of the contract (240 working days per year)
3.3.
MANAGEMENT OF A DRAW DOWN FACILITY FOR CBT TECHNICAL RESEARCH
A resource pool of US$ 100,000 per year for two years will be made availabe under this contract to allow the
unit to bring in STTA to work on areas such as introducing and raising awareness of Simplified Trade Regime
and mutual recognition of qualifications for cross-border trade in services.
It will be the responsbility of this contract to identify specific assignments for the STTA pool, draw up TORs and
contract STTA with approval from TMEA.
3.4.
SUPPORT CROSS-BORDER CUSTOMS & BORDER ADMINISTRATIVE
COMMITTEES
TMEA, under this contract, will provide and additonal US$ 100,000 per annum for a period of two years to
fund the establishment and running of cross-border customs and border administrative committees in at least
6 CBT areas.
4. LOCATION OF ASSIGNMENT
The CBT Specialist and Junior Economist will be based at MINICOM offices in Kigali but will be required to
travel to border districts to oversee cross-border activities from time to time. MINICOM will provide office
space for the unit.
5. MANAGEMENT OF PROGRAMME
TMEA is requesting interested firms to submit technical and financial proposal for the mangement of this
contract. For the financial proposal the following should be included:
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Programme Manager – Budget for two years;
Junior Economist – Budget for two years;
Management of STTA pool – US$ 200,000 spread over two years is available for this component. The
financial proposal should include % of this budget line that will be used by the contracter to manage
this component;
Management of funds for Cross-Border Committees: US$ 200,000 spread over two years is available
for this component. The financial proposal should include % of this budget line that will be used by
the contracter to manage this component;