At least 70 per cent of industries in industrial parks in Rwanda are operational with the rest under different stages of development, according to the Ministry of Trade and Industry (MINICOM). The government has put in place two special economic zones – Kigali Special Economic Zone and Bugesera Special Economic Zone – and eight industrial parks in Rwamagana, Muhanga, Nyagatare, Musanze, Huye, Nyabihu, Rusizi, and Rubavu districts. ALSO READ: Trade Minister summoned over inefficiencies in industrial parks Under the first National Strategy for Transformation (NST 1), Rwf250 billion was spent on developing industrial parks. According to the recently released World Bank report, Rwanda’s industrial parks can significantly boost domestic industries by fostering agglomeration, helping them achieve economies of scale, and enhancing their competitiveness in regional and global markets with exports. Prudence Sebahizi, the Minister of Trade and Industry, told The New Times that the government aims to achieve a 10 per cent annual industrial growth, and 13 per cent manufacturing growth. With industrial growth, the country seeks to increase export receipts from $3.5 billion (approximately Rwf4.8 trillion) to $7.3 billion (approximately Rwf10 trillion). Private investments are expected to increase from $2.2 billion (Rwf3 trillion) to $4.6 billion (Rwf6.2 trillion) by 2029. The development of industrial parks in Rwanda is categorised into five stages. These include land identification, engineering studies, land expropriation, infrastructure development, and operational status and the latter is at 70 per cent. “Only the Kigali Special Economic Zone is fully operational,” he said. Bugesera special economic zone, Huye, Rusizi, Musanze, Rwamagana, and Nyabihu industrial parks are at the third stage of land expropriation, while Muhanga and Nyagatare are at the engineering design stage, and Rubavu is at the earliest stage of development, he explained. “Despite the growth, challenges like inadequate roads, energy, and water hinder competitiveness,” Sebahizi said. Over the next five years, four priority industrial parks — Rwamagana, Musanze, as well as Bugesera and Kigali special economic zones — are expected to play a significant role in achieving the secondNational Strategy for Transformation (NST2). This, the government says, will contribute substantially to economic growth by boosting exports and creating thousands of jobs. At least, a total of 63,507 jobs are expected to be created by 2029. Operational status of industrial parks Bugesera special economic zone, which lies on over 330 hectares, targets to add $1.2 billion in value to Rwanda's manufacturing sector. At least 48 hectares of the zone have not yet been expropriated. There are already 11 companies with factories that are operational with Rwf95 billion plannedinvestment out of 27 companies. Two other factories are being constructed. In 2022, the government of Rwanda and ARISE Integrated Industrial Platforms (ARISE IIP), a pan-African company that designs, develops, finances, conceives and operates industrial ecosystems across Africa entered into a joint venture to develop Bugesera special economic zone. The government holds a 40 per cent stake while ARISE IIP owns a 60 per cent stake. Rwamagana District industrial park sits on 80 hectares with 46 companies of which 14 are operational. Investors had invested $59 million by February 2024. Designs and expropriation were completed. Some basic infrastructures were also established but others such as the waste water sewage system are yet to be set up. ALSO READ: Govt secures investor for 'bio-compostable' packaging materials The industrial park in Huye district has 50 hectares, hosting seven operational industries, and 20 companies have expressed interest to establish their presence in the park. However, MINICOM says the government is yet to set up all required basic infrastructure to accommodate many investors who have already expressed interest in Huye industrial park. Muhanga district industrial park, spanning 63 hectares, is home to three operational companies that have invested over $100 million. In total, seven companies have expressed interest. However, some residents have not yet been expropriated and not enough basic infrastructure has been established. Rubavu industrial park on 50 hectares was approved by the district council in June, 2023. However, the zone is yet to be developed and utilised. So far, over 220 companies have invested $2 billion in the Kigali Special Economic Zone. “The Kigali Special Economic Zone (KSEZ) has been developed in phases, with the first three zones already occupied. Development has now shifted to the fourth zone to accommodate new investors,” minister Sebahizi said. Since 2017, KSEZ has accommodated five construction material factories, 23 manufacturing plants, 10 agro-processing factories, three textile plants, and one wholesale pharmacy service company. MINICOM data also shows that four import and distribution companies, three printing industries, one removal service company, one transport service company, and two universities (Carnegie Mellon University Africa and the University of Rwanda), have established at the Kigali special economic zone. From 2017 to 2023, KSEZ generated Rwf196 billion in tax contributions, Rwf417.8 billion in exports, and created 91,126 jobs through businesses operating within the zone. “Over the next five years, phases 3 and 4 will expand the total area of KSEZ and are projected to create thousands of additional jobs by attracting industries in priority sectors like manufacturing, agro-processing, textiles, and ICT,” the minister noted. The minister highlighted that industries like leather, textiles, pharmaceuticals, creative industries, steel, glass, automotive, horticulture, and tea value chains, are poised to drive economic transformation during this period. Industrial parks development Nyagatare district industrial park, which lies on 50 hectares, will become an agro-processing industrial park with four companies expected to set up base, three of which are already operational. Nyabihu district industrial park on 50 hectares will also become an agro-processing industrial park. Rusizi industrial park is on 45 hectares and expropriation and engineering study is underway. At least 16 companies seek to invest, of which four are already in operations. Kicukiro industrial park is also under design. The Ministry of Industry is working with the United Nations Industrial Development Organization (UNIDO) to develop studies for agro-processing industrial parks in Nyabihu and Nyagatare. The government seeks to work with India-Exim bank, and another bank from Belgium, among others,to continue developing and completing the industrial parks over the next five years. To achieve this, an industrial policy has been reviewed and a road map developed to complete the current industrial parks. ALSO READ:Rwanda’s Covid-19 manufacturing recovery programme phased out Jean d’Amour Kamayirese, the representative of Kigali Leader Cluster, which include hides and skins dealers, said that lack of industries to process hides and skins as well as leather processing factories is affecting the garment sector. “The country is importing a lot of finished hides and skins as well as shoes, belts from Italy, China among other products. The trade deficit is huge yet we need Made-in-Rwanda products to close the gap. The new industrial policy should also prioritize the hides and skins value chain,” he said. The government is looking for potential developers for a tannery park. ALSO READ: Tannery park to be set up in Bugesera to boost leather sector The proposed investment for an integrated hides and skins processing plant, complete with effluent treatment facilities, is estimated to require an initial outlay of $15.1 million (approximately Rwf 19.7 billion). Rwanda Housing Authority (RHA) has said that the government will make available over 9,000 hectares for investors who want to set up industries in different cities across the country by 2050. In the new plan, 233 hectares have to be allocated to industry parks in Kigali city, 908 hectares in Muhanga, 1,226 hectares in Rwamagana, 1,483 hectares in Bugesera, and 605 hectares in Nyagatare. Some 151 hectares have been allocated in Huye, 333 hectares in Rubavu, 288 hectares in Rusizi, 424 hectares in Musanze, 238 hectares in Kirehe, 341 hectares in Karongi, and 143 hectares in Nyabihu districts. Currently, the land allocated to industries across the country is 1,200 hectares.
