Phase II of special economic zones to add 6,000 jobs
Sunday July 30 2017
The garment section at Rwanda's Utexrwa. The growing industrialisation should improve the trade balance, reduce pressure on foreign reserves and prop up the franc from further depreciation. FILE PHOTO | CYRIL NDEGEYA
Rwanda is banking on the completion of the first two phases of its special economic zone in Kigali to add 6,000 jobs to the economy.
“The first phase of the Kigali Special Economic Zone has created 3,124 casual and permanent jobs,” said Annette Karenzi, the director-general for Industry and Enterprise Development at the Ministry of Trade and Industry.
“I would project the number of jobs created to double when the second phase of the project is completed,” she said.
She did not give any timelines for when the second phase will be completed.
The special economic zone near Kigali International Airport occupies 276 hectares of land, donated by the government to boost manufacturing, construction, garment logistics and pharmaceutical industries.
Emmanuel Hategeka the chief operating officer at the Rwanda Development Board (RDB) said that so far, projects valued at Rwf131.2 billion ($298.3 million) had set up shop over the past five years at the zone.
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Mr Hategeka cited Rwanda’s low business risk environment due to political stability and the prevailing security in the country as incentives. Rwanda’s strategic location in the region is another attraction for investors.
Chinese firms have invested over Rwf12 billion ($14.4million) in the special economic zone, making them the largest foreign investors in the area.
Investors from East Africa include Mikoani Traders Ltd, Azam Bakhresa (Azam) and Tanzanian firms making mattresses.
The growing industrialisation should improve the trade balance, reduce pressure on foreign reserves and prop up the franc from further depreciation. Already, the country’s trade deficit has shown signs of improving.
At least 94 plots at the special economic zone were allocated to industries to boost manufacturing. Currently 32 industries and 15 warehouses are operational in the first phase of the project.