Cottage industries could salvage the paper bag making sector

It has emerged that business people are reluctant to invest in the making of bio-degradable packaging bags despite a ban on use, manufacture or importation of plastic bags.

Tuesday, June 11, 2013

It has emerged that business people are reluctant to invest in the making of bio-degradable packaging bags despite a ban on use, manufacture or importation of plastic bags. Although this sector presents a lot of opportunities for Rwanda, industrialists say the cost involved is too high to attract investors. They argue that the problem is compounded by lack of skilled Rwandans to serve the industry and a small local market. However, if we ignored the ‘big investor’ approach and encouraged, say small co-operatives, to start producing paper bags using locally available raw materials, can’t we sort of side-step these challenges? This approach is not new and has been used successfully by many countries worldwide to buttress industrial growth across sectors. China, India, Malaysia, Germany, Japan, name it, have all used this approach to reach where they are today. Rwanda should follow suit as there is no need to re-invent the wheel. Therefore, the government should, besides wooing the big investors, encourage co-operatives and individuals to set up cottage industries to make bio-degradable packaging materials. The issues of quality and skills can be addressed as the cottages grow. Of course initially, their main market would be local, but as they perfect their act they can go regional and global. It should be noted, however, that government support is key; this can be through tax holidays, training or financial support for these groups to help them gain their footing. If this approach was applied across the board, it could in fact boost greatly the country’s efforts towards industrialisation.