Irene Basil, a Rwandan living in the United States, initiated a project to build a $3.5 million hygiene products factory to produce sanitary products in the Muhanga district of the southern province where he comes from.
“My investment of hygiene products factory was inspired by the Rwandan manufacturing policy supported by the government. I also realized that sanitary napkins, toilet paper and other sanitary products are in great demand.
He said the project will play a role in the economic recovery during the Covid-19 pandemic by creating jobs.
“Due to the Covid-19 pandemic, many people have lost their jobs. As Rwandan diasporas, we should do something that will help the country’s economic development. We should support the “Made in Rwanda” initiative to increase locally produced products. I and trade and The Ministry of Industry had a conversation and helped me acquire two hectares of land in Muhanga District,” he said.
“In the first phase, the hygiene products factory will start producing toilet paper, sanitary napkins, diapers, wet wipes, etc. We must ensure that the products are of quality and reasonable price,” he said.
As the factory will be completed within three months, at least 33 families will be expropriated.
“Some unemployed residents, especially young people like me, want to find jobs and hope that there will be more factories in the area,” said Charles Twagirimana, a resident of Niamabuye.
Innocent Kayiranga, the deputy mayor in charge of the economic development of Muhanga District, said that the industrial zone is being equipped with infrastructure to facilitate investors.
He said that so far, waterway and road infrastructure have been built to facilitate access to the industrial zone, and high-voltage power transmission facilities will be built to supply power to the factory.
Muhanga District worked with the Ministry of Trade and hygiene products factory to develop a 67-hectare industrial zone master plan, of which 4 hectares are reserved for the handicraft center.
More than 60 hygiene products factory are expected to be built in this industrial zone to help increase locally produced products.
According to the “Made in Rwanda” policy, US$450 million can be saved every year by reducing the trade deficit.
Light industry manufacturing can save up to 120 million U.S. dollars per year, construction materials can save up to 206 million U.S. dollars, and agricultural processing can save up to 112 million U.S. dollars per year.
According to the report of the Parliamentary Economic and Trade Committee on the assessment of the implementation of Rwanda’s manufacturing policy, the special economic zones in Kigali, secondary and satellite cities are expected to help reduce the trade deficit.
However, a report released in December 2020 indicated that the industrial zone has not yet been fully expropriated.
Muhanga District reserves 63 hectares, Lubawu 50 hectares, Luxizi 45 hectares, and Huye 50 hectares.
Musanze District has 167 hectares of industrial area, Nyagatare District of 50 hectares, Rwamagana District of 80 hectares, Kicukiro District of 100 hectares, and Bugesera District of 330 hectares.
The government is introducing incentives under the “Manufacturing and Construction Recovery Plan” aimed at increasing the production of building materials, processing of agricultural products, and sanitary and sanitary products.
hygiene products factory that set up industries or expand operations in the above-mentioned industries will be exempted from import duties on materials and equipment purchased for the establishment of production plants.
Incentives include tax exemptions for building materials and machinery used to build manufacturing plants. If the input is not available locally and imported, there is no need to pay import duties, and if it is purchased locally, VAT is exempted.
For those who purchase materials in construction and locally, they will be exempt from VAT. This will give investors the opportunity to save and reduce the overall cost of their investment.
Post time: Dec-13-2021