Editorial: Textile industry has potential to accelerate job creation

Over 600 jobs will be created following the entry of a new player in the local textile sector. Burera Garment Factory-a joint project of Burera District and Noguchi Holdings, a Japanese venture capital firm will soon start operations in the Northern Province district. In addition to creating over 600 jobs directly, the factory will create hundreds of other jobs along the value addition chain. The development is a timely boost for the Made-in-Rwanda campaign as the country moves to enforce a ban on used clothes that are partly responsible for the current country’s trade deficit. It will also boost the government initiative of creating 200,000 off farm jobs annually by 2018. The factory has already trained over 100 workers and the number will hit 500 by December. In the wider context, the textile sector has potential to create jobs in big numbers, especially for the vocational education graduates. However, for the sector to fully achieve its potential, revamping the textile sector should be expedited as this would gradually address the unemployment problem, especially among the youth. The Domestic Market Recapturing Strategy of 2014 that was validated in 2015 shows that the local textile sector has potential to produce enough to meet the local market demand and even for export. Experts say, if the textile sector operates at its full capacity, total foreign exchange savings induced by the domestic market recapturing strategy could reach almost $450 million per year. Going forward government should intensify efforts to attract more investors in the textile sector. Through deliberate campaigns and provision of incentives, more investors will join the sector. Also more efforts should be put in ensuring that the sector is supported to produce quality products that are competitive on the local market.

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Editorial: Textile industry has potential to accelerate job creation