Building a sustainable institution and a respected private sector voice at both local and international level is among the visions of the Private Sector Federation (PSF). But can it be realized without the habit of collaboration among business people?

It is in this regard that PSF is now in the process of urging private sector members and stakeholders to see how they can help one another strategically and technically to improve the their businesses and strengthen the spirit of competitiveness.

PSF chairman Robert Bayigamba. (file photo)

He further explains that many businesspeople have the habit of working on their own, which could weaken them in terms of competitiveness and productivity. But he thinks today they understand the importance of mutual collaboration.

According to Michael Porter, a senior lecture in the University of Havard, School of Business, and also an advisor to President Kagame, Rwanda can grow more business opportunities and benefits than neighboring countries, simply if it develops the clustering system in its business practices.

“Clustering among private businesses involves different companies that share mutual operations and reinforcement,” Porter explains. “The only thing that needs to be done is setting up an action plan and a forum where everyone will be free to raise his creative ideas for the benefit of all.”

He further remarks that they should create a business environment that will facilitate them to raise the productivity and which cannot prevent them from competing against each other or compete for the country in case they are abroad for international trade fairs.

According to Edwin Sebuhoro the coordinator in Rwanda Tourism Cluster, the productivity has increased significantly since they established the clustering system in delivering tourism services.

“If for example we organize a tourism event, we really see the positive fruits of working as a cluster,” he says. “We work collaboratively with accommodation, food beverages, and transport and travel agencies companies in order to deliver good services to our respective tourists.”

Robert Bayigamba, the chairman of PSF, for his part says it is important for entrepreneurs to address common challenges together, especially in terms of equipment and productivity.

“By strengthening the system, I am optimistic that some of the mutual challenges will be simply resolved and that the remaining task in elaborating new business and strategic plans will also be harmonized to benefit everyone and the country,” Bayigamba remarks.