Competition in the local textile sector could soon increase following the entry of a new player in the market. Burera Garment Factory is a joint project by Burera District and Noguchi Holdings, a Japanese venture capital firm, and is part of Integrated Craft Production Centres (ICPC) locally known as ‘Udukiriro’.

The factory that will soon start operations in the Northern Province district is a huge boost to the Made-in-Rwanda initiative and efforts toward self-reliance and import substitution, according to Jean Marie Niyonzima, the chief executive officer of garment factory.

Niyonzima added the project seeks to promote Made-in-Rwanda and help create off-farm jobs. Government targets to create 200,000 off-farm jobs annually by 2018, therefore, the entry of the firm is a great step toward the realisation of this goal.

Niyonzima said of the Rwf1 billion initial investment, the district has 48 of the shares while Noguchi has a majority shareholding at 52 per cent. Part of the funds were used to buy equipment, like electrical machines and a computerised cutting machine, Niyonzima said.

"Currently there are over 280 modern machines that will be used in clothes manufacturing and a computerised cutting machine worth Rwf170 million.

It will be used to design various fashions and has the capacity to cut over 15,000 tissues on one command within 30 minutes,” the official added.

He said that since the machine is the biggest in the country, other sector players will be allowed to use it at a fee.

"We put more focus in garment industry as a move to support the Made-in-Rwanda initiative. The factory will make all kinds of clothes to reduce imported used garments,” he said in an interview with Business Times last week. He added that the plant targets to be producing at full capacity by January next year.

"We will be able to make over 480,000 clothes per month and this factory will create over 600 jobs for full time employees in garment trade alone,” he said.

Ready market

He said Burera Garment Factory already signed a lucrative contract with a Hong Kong-based firm to export over 200,000 pieces of apparels per year.

The factory also has section for artisans including, shoe making, carpentry, weaving, among others, which is run by local cooperatives.

Training

Niyonzima said the have trained 100 workers so far, adding that the number will hit 500 by December. The firm employed former tailors who were scattered around Burera town and Vocational training Centres (VTCs) graduates.

They have been trained on how to use the newly acquired electrical machines.

According to Niyonzima, the management of the Community Processing Plant will be working with cooperatives to design good projects and find market from them to manufacture good products by providing technical support and commercialisation of their products.

Revamping textiles sector

Francois Kanimba, the Minister for Trade, Industry and EAC Affairs, recently said revamping of local textile and hides and skins manufacturing industries would gradually eliminate used clothes and shoes on the market, paving way for Made-in-Rwanda products.

Import substitution strategy

One of the strategies to reduce the trade deficit gap is to promote production and consumption of locally made products, according to the Domestic Market Recapturing Strategy of 2014 that was validated in 2015.

Spearheaded by the Ministry of Trade, Industry and EAC Affairs, the strategy shows that the textile and apparel industry in Rwanda is small with only one major textile manufacturing company (UTEXRWA).

The firm operates at 40 per cent of its installed capacity, producing 12,000 metres of fabric per year. The strategy indicated three key potential sectors to recapture the domestic market.

The study indicated that the total foreign exchange savings induced by the domestic market recapturing strategy could reach almost $450 million per year.

The government provides necessary incentives to the investors which include land, electricity, raw materials, and technical skills to the labour market and favourable taxation policies to the investors, among others.

As part of promoting Made-in-Rwanda, the government plans to have at least one Integrated Craft Production Centre (ICPC), with the core objective of nurturing an Entrepreneurial Culture among Rwandans, especially the youth.

The main trades in ICPC are metal crafts, wood crafts – carpentry and carvings, Electrical fittings - welding and maintenance, computer maintenance, textile - tailoring and knitting, shoe-making and other leather products, molding and ceramics, among others.

Beneficiaries speak out

The youth who have been recruited by the firm say it will, not only help them get employment, but will also enable them acquire modern skills.

"I have acquired modern skills that I believe will make me more competitive in the job market. I am sure these will enable me contribute meaningfully in the sector, producing quality clothes,” said Vestine Uwiringiyimana, 21, from Rugarama sector, Burera District. Uwiringiyimana added that the experience she will gain from the factory will help her start her own enterprise in future and employ other youth.

The plant

Located in Rugarama sector, the factory seats on 2.5 hectares of land. The building also hosts the area Integrated Craft Production Centre.