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Description

OVERVIEW

The manufacturing sector in Rwanda is still small but steadily growing at an annual rate of 7%. Several policies and strategies such as the National Industrial Policy and the National Export Strategy have been developed to accelerate industrial and export growth. The National Industrial Policy aims at diversifying the economy by increasing the share of industry to the country’s GDP, increase exports to 1.5 billion USD by 2020 and increase the number of off-farm jobs.

To increase local domestic and foreign supply of manufactured goods, the Government has put in place the Special Economic Zone and four Industrial parks in Bugesera, Huye, Nyabihu, Rusizi to address the short comings in the business environment by developing infrastructure, streamlining business regulations and facilitating fast moving investors. In addition to this, every District has an area earmarked as an industrial park.

Other than the Rwandan market, the East African Community (EAC) of which Rwanda is a member constitutes a very big market for manufactured products. The population of the EAC currently stands at 143.5 million. Rwanda is centrally located in the EAC and has spatial proximity to each of the EAC member countries. For instance, traders from Burundi, also an EAC member, and DRC source their merchandise through Rwanda from other EAC countries. In addition, Rwanda is a signatory to various bilateral and multilateral trade agreements which ensure wider regional and international markets access.  Tripartite trade agreement COMESA/EAC/SADC with a market potential of 600 million consumers is also going to be signed in the near future.

 

INVESTMENT OPPORTUNITIES

Construction materials:

Rwanda’s building and construction industry has rapidly grown in the past couple of years with both Government and private sector engaged in the construction of buildings and roads infrastructure triggering what is now named as a “construction boom in Rwanda”. This has resulted into high demand for construction materials mainly: cement, electric cables, steel materials, Clay products (tiles, bricks, and paving blocks), float glass, wood products and paints.

 

Textiles and garments:

The textile and apparel industry in Rwanda is small with only one major textile manufacturing company (UTEXRWA), a number of sizable small to medium scale operators, knitting cooperatives and a silk sector, which is at its infancy stage. Given the unique characteristics of the Rwandan market, the following local production options seem most promising:

New garments manufacturing: 

Set up fiscal measures to progressively phase out imports of second-hand clothes

Mosquito bed nets for malaria prevention:

Rwanda promotes universal coverage of free LLINs as part of an integrated strategy of combating the malaria disease.

Fabric production for use in uniforms and work wear

Woven fabric for bed sheets and towels

Pharmaceutical products:

The increasing access to healthcare in Rwanda resulting from universal health insurance schemes coupled with improved distribution chain and other healthcare policies has resulted into high demand for pharmaceutical products.  Most of pharmaceutical products are imported, Labophar is the only Rwandan manufacturer of pharmaceuticals. It’s a small, public facility manufacturing on a very small infusions.

Packaging materials:

Most of the packaging materials needed in Rwanda are imported. Corrugated paper and carton board boxes, unprinted paper labels, small paper bags and sacks, and paper containers would appear to be the most promising market segments on the domestic market.

Soaps and detergents:

The estimated size of the market demand for soaps and cleaning products is about US$50m with estimated domestic production of US$15-20m, representing about 40% of the total market size.

Motorcycles assembling:

The regional and local market for Motorcycles is growing. Motorbikes transport is one of the common modes of transport in Rwanda and in the region –The number of motor cycles in Rwanda is increasing year by year.

Leather processing:

Government is committed to develop the leather sector: developing a tannery park with central waste water treatment plant, setting up Community Processing Centre in each District aiming at training artisans on leather product s manufacturing, one cow per household program etc. There is opportunity for:

• Wet blue and Finished leather production
•  Shoes manufacturing
• Other leather products manufacturing: bags, belts,… 

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