Roundup: Rwanda targets industrial sector growth to boost economic transformation

The Rwanda government is exerting its efforts by cooperating with members of the country's Private Sector Federation to boost local manufacturing sector to fast track economic growth.

The small central African country sees industrial sector emerging as a strong candidate in wooing foreign and local investors and creating jobs.

Rwanda is also looking at creating a favorable environment for strong industrial and manufacturing growth, which suggests that the government believes manufacturing can play a major role in bringing private investment to the country and creating jobs.

Speaking to reporters on Thursday, Francois Kanimba, Rwanda minister of trade and industry said that Rwanda's manufacturing sector has the potential to increase its contribution to GDP, and serve as a source of employment for its fast growing, young population.

"We have allocated special economic zones across the country to attract more investments that will transform Rwanda into a middle income economy driven by industrialization. We are considering all necessary requirements that support manufacturers to enable them more than double industry's contribution to the economy over the next five years," he added.

The Rwanda Special Economic Zones (SEZs) is a programme within the Rwanda Development Board that is designed to address domestic private sector constraints such as availability of industrial and commercial land, availability and the cost of energy, limited transport linkages, and market access, among others.

SEZs are well equipped with tarmac roads, water and electricity rollout in all designated plots and a waste water treatment plant.

The country has already developed Kigali Special Economic Zone located in Gasabo District within the country's capital, which targets to be a hub of private sector investment.

According to Benjamin Gasamagera, Chairperson of the Rwanda Private Sector Federation, local manufacturing sector targets to grow by 30 percent within the next five years, up from the current 14 percent.

"We have launched a Made-in-Rwanda products campaign to ensure the growth of local industries to create jobs and increase incomes for the people. The drive is expected to be of great significance for manufacturers and will increase the demand for Rwanda products which will finally boost exports and foreign currencies flow," he noted.

In order to boost the manufacturing sector, Rwanda has cut energy costs to help boost the sector and usher in more energy-efficient practices in the country.

The government has slashed unit prices for electricity and rural water supply by 50 and 30 percent, respectively, according to Rwanda Utilities Regulatory Authority.

Decreased energy costs have been identified as a major boost by the private sector in expanding businesses and therefore job creation.

In 2015, Rwanda exported goods worth 389 million U.S. dollars, and imported goods worth 1,863 million U.S. dollars, according to statistics from the Rwanda ministry of trade and industry. Endit