Markets
Senior 2 · Entrepreneurship
Markets
Lesson 3 of 4
18 min
A juice maker in Rubavu can sell in her own town, across Rwanda, a few kilometres away across the border in Goma, or, one day, in shops in Europe. Each of these markets has different customers, costs, rules and risks. Choosing where to sell is one of the biggest decisions an entrepreneur makes.
| Type | Meaning | Rwandan example |
|---|---|---|
| Domestic (home) market | Buyers and sellers inside one country. It includes local markets (one town or sector) and the national market (the whole country). | Vegetables sold at Kimironko; Rwandan milk sold in shops across the country |
| Regional market | Buyers and sellers in a group of neighbouring countries, often a trading bloc. | Rwandan goods sold in Goma, Kampala or Bujumbura; cross-border traders at Rubavu and Rusizi |
| International (global) market | Buyers and sellers anywhere in the world. | Rwandan speciality coffee and tea sold in Europe, North America and Asia |
| Type | Advantages to a Rwandan business | Disadvantages |
|---|---|---|
| Domestic | Low transport costs; no border procedures or currency exchange; customers and their tastes are familiar; the national language and rules apply. | Rwanda’s market is small (about 13 million people at the 2022 census), so growth is limited; many sellers compete for the same buyers. |
| Regional | Many more buyers; similar tastes; bloc agreements remove many tariffs; raw materials can be bought from neighbours. | Border delays and paperwork; exchange-rate changes; stronger competition from larger firms in bigger neighbouring economies. |
| International | A huge market; higher prices for quality products; foreign exchange for Rwanda. | Long, expensive transport for a landlocked country; strict quality standards; world prices can swing sharply. |
This case is written by Ganzaa. A Rubavu juice maker produces 1,000 bottles a week, each costing 400 Frw to make.
Tip
Memory hook. Picture three circles around your business: home (domestic), neighbours (regional), world (international). Each wider circle brings more customers, but also more distance, more rules and more competition.
Solution: (a) domestic (local); (b) regional; (c) international.
Solution: Any two: border delays and paperwork; exchange-rate risk; competition from larger foreign firms; higher transport costs.
Solution: 180 × 800 = 144,000 Frw.
Solution: A wholesale market sells in bulk to traders; a retail market sells in small quantities to final consumers.
Summary
Sources and credits
The comparison tables, the Kigali or Goma case, the worked example and the practice items are written by Ganzaa.
This lesson adapts CC BY-SA material and is shared under CC BY-SA 4.0.
