Rwanda has signed a-5 year land lease agreement with two textile companies that pledged to start Rwf 10 billion garment and footwear factory in Kigali by July 2017.
Albert supply Ltd, a local garment company and the Burundi based Prime Economic Zone Ltd obtained 2.5 hectares of land for five year renewable lease.
The land is part of 5 hectares the government has secured at Kigali Special Economic Zone on behalf of textile investors after complaint that the cost of land is too high.
The deal was signed on Tuesday by the investors and Rwanda’s Ministry of Trade and Industry (Minicom).
Albert supply will be producing clothes from leather, cotton and other raw materials while Prime Economic Zone will focus on shoes, belts and bags from leather.
The two companies will be working hand in hand to satisfy Rwandan market in all categories.
“There is a market study being conducted to know people’s preferences, however we will make sure every Rwandan can afford our products.” Albert Nsengiyumva the CEO of Albert Supply Ltd told KT press.
Bede Bedeste of Prime Economic Zone said it has always been his dream to invest in Rwanda.
“It has been my wish and as far as I am concerned, I do not take it for granted.”
According to Minicom Minister Francois Kanimba, “Albert supply Ltd has come as one of the most competent investors on board and we have confidence in them to make a change hence influencing others.”
Rwanda is promoting local industry through the “Made-in-Rwanda” campaign to boost domestic production and consumption.
The new investor will compete with two existing textile companies including; UTEXRWA and C&H garment.
Over 400 tailors under their Kigali Garment Centre (KGC) are also raising Rwf 3 billion to start a clothing factory.