Rwanda signs deals with textile investors to set up clothing factories at AMZ

YarnsandFibers News Bureau 2016-09-08 17:00:00 – Africa

Rwanda government to establish new clothing and shoe factories at the newly-demarcated Apparel Manufacturing Zone (AMZ) which currently occupies 5 hectares at the Kigali Special Economic Zone has signed agreements with two investors. The agreement was signed between the ministry and two investors Albert Supplies Ltd and Rwantan Ltd involved in the apparel manufacturing industry.

The Government land will be given to investors engaged in apparel production, requiring them to pay for it over a period of 20 years as a way of encouraging them to invest in the country.

François Kanimba, the minister for trade and industry said that they realized one of the major challenges for the investors is to acquire land in the economic zone where a hectare of land costs up to Rwf430 million. This would make them spend a lot of money in buying land and the related processes. So they decided to help them so that their investment will remain in securing machinery and other needed capital.

The minister said that the move was one of the strategic interventions taken by the Government to develop and strengthen the capacity of production units engaged in textiles, and leather production and consequently limit consumption of imported used clothings.

Albert Nsengiyumva, the director of Albert Supplies Ltd, said that the factory will produce different types of high quality clothes and employ up to 2,000 people. The investment in the factory for the start is Rwf10 billion and by July next year, finished products will have been put on market.

Bede Bedetse, a Burundian who manages Rwantan, a leather products manufacturing company, said they will produce different types of affordable leather products, including belts and footwear.

Kanimba used the opportunity to also call on other investors to take advantage of the AMZ land opportunity while the land is still available.

Currently, C&H Made in Rwanda and Utexrwa are one of the oldest textile factories in Rwanda.

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