Prime Minister Dr. Edouard Ngirente announced on Friday, March 27, 2025, the construction of a steel and metal-processing plant in Musanze, with an annual production capacity of 300,000 tonnes. The factory is expected to supply essential raw materials to other industries, aligning with the government's vision of boosting industrial productivity.
Speaking before both chambers of Parliament, Dr. Ngirente reaffirmed the government's commitment to increasing industrial output and exports to achieve sustainable economic growth. He noted that many industries in Rwanda currently operate below their full capacity, and the government is determined to change this through strategic investments and support mechanisms.
To further support local industries, the government is establishing a RWF 500 billion fund to assist private sector players in expanding manufacturing exports and mineral extraction. A key focus is on the cement industry, which heavily relies on imported clinker.
Research has confirmed that clinker can be produced locally in northern Rwanda, particularly in Musanze. This move is expected to help Rwanda save over $4.5 million per month in import costs.
In the steel sector, the new Musanze-based factory will not only increase local production but also supply essential raw materials to existing manufacturers.
"This new factory will have a processing capacity of 300,000 tonnes per year. It will play a crucial role in meeting domestic market demand and eliminating the need for costly imports," Dr. Ngirente stated.
The project is expected to create about 1,000 jobs and enhance Rwanda's export potential in the steel sector.
Strengthening the textile industry
Rwanda is also taking significant steps to develop its textile industry following the ban on second-hand clothing imports. The government is committed to supporting the establishment of new textile industries and strengthening existing ones to ensure all Rwandans have access to locally made, affordable clothing.
'We currently do not have enough locally produced clothing, so we must intensify efforts to ensure that textile industries can manufacture clothing for all Rwandans at competitive prices,' Dr. Ngirente said.
To further promote the sector, the government will facilitate access to diverse markets, helping the country save approximately RWF 20 billion that was previously spent on imported garments. This initiative is also expected to create thousands of jobs, aligning with Rwanda's National Strategy for Transformation (NST2) goal of generating 250,000 jobs annually.
Boosting cooking oil production and leather processing
In addition to textiles and steel, the government is prioritizing the edible oil industry, recognizing its potential to generate substantial revenue within a short period.
"Enhancing our cooking oil production will enable us to save approximately $100 million annually," Dr. Ngirente stated.
The expansion strategy also includes advancing Rwanda's wood-processing sector and establishing a leather processing park in Bugesera. The leather facility is expected to generate $430 million annually, significantly contributing to the country's export earnings.
Rwanda's agro-processing sector remains the largest industrial segment, comprising 85 large-scale and 908 small-scale enterprises. The country also hosts 91 major manufacturers of various products, alongside 398 small-scale producers. Additionally, 38 large and 82 small construction material manufacturers operate within Rwanda.
With these industrial developments, Rwanda is positioning itself as a key player in regional and international markets while significantly reducing its reliance on imports.
The government's investment in industrial growth is expected to drive economic transformation, create jobs, and improve the country's trade balance in the years to come.
IGIHE
