The government is seeking investors to develop a tannery park in the Bugesera Special Economic Zone, The New Times has learned.

The initiative, which seeks to reduce imports of tanned hides and skins as well as boost the local leather sector, was announced in 2021 by the Ministry of Trade and Industry but couldn’t materialize due to funding shortages, among other challenges.

The proposed investment for an integrated leather processing plant, complete with effluent treatment facilities, is estimated to require an initial outlay of $15.1 million (approximately Rwf 19.7 billion).

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Fred Mugabe, the Director General in charge of Industry Promotion and Entrepreneurship Development at the Ministry of Trade and Industry, told The New Times that the government has allocated a substantial area of land in Kamabuye sector, Bugesera District, for the tannery park.

"A tannery park requires a location distant from other human activities—at least a one-kilometer radius—to prevent pollution from affecting surrounding areas, as it is a highly polluting industry,” Mugabe explained. "The site has already been identified, and the next step was to conduct a business case to assess its profitability.”

Mugabe added, "The business case is completed and validated, and we have started engaging potential investors.”

While Mugabe did not disclose details of the ongoing negotiations, he indicated that "several potential investors, including prominent firms in the textile industry, have expressed strong interest.”

When pressed for further details, Mugabe noted, "We anticipate that investors will take action soon, secure the land and available facilities, and initiate operations for the tannery park. We are also collaborating with the African Development Bank (AfDB), which has agreed to fund the broader feasibility studies for the park.”

"These studies will delve into the designs, engineering requirements, and potential funding sources,” he said.

Challenges in the Textile Value Chain

Rwanda's textile value chain faces significant challenges, particularly the limited availability of raw materials such as fabrics and accessories. Most industry players rely on imported fabrics, primarily woven fabrics from China and knit fabrics from the East African region, particularly Kenya and Uganda.

Officials noted that the lead time for obtaining these fabrics exceeds two months, far longer than the industry standard of 2-4 weeks.

Jean d’Amour Uwimana, a young entrepreneur who makes shoes in Nyarugenge District, told The New Times, "A good tanned skin requires one meter which costs Rwf 2,500 on the local market, yet the same size is imported at Rwf 1,300 from Nairobi, Kenya.”

Junis Mukanyandwi, another leather products maker, added, "We rely on imports because it’s the only way to access diversified tanned hides and skins. Most tanned hides come from Kenya, while other materials are sourced from China. Even though there is a tanning factory in Bugesera, prices are higher, and the local market doesn’t always offer the varieties or quality we need, depending on the type of shoes we want to produce.”

Additionally, operators face challenges with importing accessories such as buttons and zips, which can take 1-2 months to arrive in the country.

Efforts to enhance the competitiveness of Rwanda’s garment sector are rooted in the Made in Rwanda Policy (2016), which aims to reduce the country’s trade deficit and promote the consumption of locally produced goods and services.

Yves Ntabana, Head of Corporate Affairs at C&D Products, emphasised the garment industry’s significance as a foundational sector for Rwanda's industrialization.

"The industry can employ a large number of people, create massive jobs, and can do so without requiring high technology, high skills, or heavy capital to start,” Ntabana said.

He noted that C&D Products is the largest employer in the manufacturing sector, with 5,500 permanent workers, benefiting from government incentives such as import duty exemptions on raw materials and free factory space in the economic zone.

According to official data, the five main textile commodities exported by Rwanda (in terms of value) include footwear with rubber or plastic soles and textile uppers, men’s trousers, jackets/blazers of synthetic fibers, women’s jackets and blazers of synthetic fibers, and men’s trousers, bib, and brace of synthetic fibers.