Rwanda’s industrial production increased by 14.7 per cent in November 2024 compared to the same period the previous year, according to the latest industrial index by the National Institute of Statistics Rwanda (NISR). ALSO READ: Rwanda’s industrial output up by 4.8% in August The Industrial Production Index is a statistical instrument used to monitor the monthly trends in the output of industrial activities. This includes the goods produced by factories and other industrial businesses in Rwanda. It is also used to compare the performance and growth of goods produced in the local industrial sector. It looks at different sectors including mining and quarrying, manufacturing, electricity, water and waste management. NISR doesn’t include construction activities due to constraint of data available. ALSO READ: Local producer prices decrease by 3.9% in November Data indicate that the annual average basis in November was 8.6 per cent. The industrial output increased by 6.8 per cent in October and 8.9 percent in September. Mining and quarrying increased by 45.2 per cent, manufacturing increased by 18.4 per cent, electricity increased by 9.6 per cent, while water and waste management increased by 12.8 per cent, during the period under review. The increase of production in manufacturing industries was driven by an increase in food processing of 26.3 percent, however, its overall performance decreased in the third quarter of the year as indicated by NISR during the presentation of GDP figures. Beyond food processing, there was a 16.6 per cent increase in manufacturing of beverages and tobacco products, while manufacturing of textiles, clothing and leather decreased by 39.5 per cent. Fred Mugabe, Ag Director General of Industry at the Ministry of Trade and Commerce, says there wasn’t any macroeconomic shock that led to the decrease in productivity of textile industries but attributed it to minor factors such as a decreased demand in that month as many people looked forward to purchasing goods during the festive season. However, he emphasized that the textile industry has seen tangible growth over the years with more players in the Made in Rwanda sector and increased local demand. He said that Rwanda’s industrial sector has seen growth over the past seven years with new investments that contributed to the growth of manufacturing industries from 10 to more than 70 currently, and creating more than 5,000 jobs for people. Mugabe added that while there is improvement in the local value chain, there are various interventions that will be enforced including improving quality and standardization of products, investor incentives, and boosting industrial parks across the country. “We also need more investments in the local value chain especially in agro-processing for value addition in tea, milk, maize, and rice. Despite the market issue we had last year for rice, there is a need for more investments in improving the quality and quantity of rice we produce so that it can be competitive on the market.” Eugene Kajigija, Division Manager of Economic Statistics and Management of Database, National Bank of Rwanda, said that the growth of industrial production implies enhanced capacity to meet local market demands and create more jobs for people. He noted that the export market remains small given that we mainly trade with countries in the region, however, having a trade deficit is not alarming as long as local industries are able to produce consumer goods, and the imports are mainly composed of capital goods.
