Construction of $20 million steel plant begins in Musanze #rwanda #RwOT

The groundbreaking ceremony for this ambitious project was held on November 7, 2024.

The integrated steel plant, with an annual capacity of 250,000 tons, is projected to create 1,000 direct jobs and support Rwanda's Second National Strategy for Transformation (NST 2) by bolstering the industrial sector's contribution to GDP.

This plant owned by Indian investors, is being constructed in the Musanze industrial zone, specifically in the Kimonyi sector.

The plant will source raw materials from local mining sites in Burera and Ngororero districts, capitalizing on Rwanda's iron ore reserves to drive production.

Output from the plant will include rebar and other essential construction materials.

Additionally, it will process locally mined iron ore, helping reduce the country's reliance on imports while targeting an export value of approximately $50 million.

Himanshu Tiwari, Managing Director of A1 Iron & Steel Rwanda Ltd., highlighted the plant's strategic role in reducing steel imports and strengthening Rwanda's position as a key player in the region's steel industry.

Tiwari expressed a commitment to creating local economic opportunities, emphasizing collaboration with the Rwandan government, partners, and community members to make Rwanda a leader in steel processing.

Antoine Marie Kajangwe, Permanent Secretary at the Ministry of Trade and Industry, remarked that large-scale industrial projects like this align with Rwanda's five-year plan, which targets a 10% annual growth in industrial output.

"This project underscores our commitment to leveraging local resources, reducing imports, and creating decent jobs for Rwandans,' he said.

The Indian High Commissioner to Rwanda, Mridu Pawan Das, emphasized that Rwanda's supportive investment climate, skilled workforce, and stable governance under President Paul Kagame make the country a prime location for international investment.

Das expressed optimism about the opportunities that such favorable conditions present to investors.

In recent years, Rwanda has imported substantial amounts of steel, with 184,000 tons in 2022, 195,000 tons in 2023, and 146,000 tons in the first eight months of 2024.

The new plant is expected to address this demand gap. The Rwandan government remains committed to supporting investors through policies, infrastructure, and security to promote sustainable economic growth.