The budget to fund the development of the infrastructure in the Kigali Free Trade Zone (KFTZ) has been reduced by 50 percent. Ruzibuka Alex the Chairman of the Taskforce said that: “the revision of the infrastructure service package has positively impacted us because we will be able to provide more plots other than the projected plots”. The move will also allow the development of 98 hactares unlike 25 hectares as it was stipulated in the first design. The road network will also be reduced from a four lane to a two lane. In an interview with Business Times, Ruzika said that the idea to revise the budget was also a caution to avoid the deficit in funding because the donors are suffering the global financial crisis. “We were considering soliciting funds from our development partners but with the current financial crisis, we have to be pro-active,” Ruzibuka said. About 35 local and regional companies have shown interest in development of the KFTZ. Nyandungu is to serve as the Kigali industrial park where more than 35 hectares have been purchased. Those booked plots in the industrial park are charged 20 percent as commitment fee. Currently, at the site, fibre optic cables are being laid for a modern telecommunication network, the sewage system, water supply and electricity. The whole development for infrastructure is expected to cost between $10m and $15m. A group of five local companies have been hired to develop the area. They include, Entregele, Horizon, Enterprise Paul Mubirigi and Enterprise Alex Mugarura. Next month, they will start selling plots and the prices are still being discussed by the board. The KFTZ is owned by the government as a majority share holder with 30 percent and the rest is shared between Rwanda Free Tradeco. Shareholders of this firm include, Rwanda Development Bank, Social Security Fund, Bond Trading, Prime Holding, SONARWA and Magerwa. The move is to attract new businesses and foreign investments in the country and when completed, goods landed, handled and re-exported in this area will be tariff free. Ends
