PM Ngirente (middle) inspects some of the mineral processed in Rwanda
The Prime Minister, Dr. Édouard Ngirente has tasked the mining sector in Rwanda to meet the country’s 2nd National Strategy for Transformation (NST2) goals of raising $2.17billion by the year 2029.
Ngirente made the call during the official launch of the seventh edition of Rwanda mining week 2024 that kicked off from December 4- 6 2024 and activities aimed at promoting best practices in the sector under the theme: “Mining for Community Development”
The week also mark’s Rwanda’s participation in the International Mining Day 2024, which will be an occasion for all stakeholders in the mining sector to engage in productive discussions, share experiences and network on available opportunities for investments in the mining sector.
Mining contributes about 3% to Rwanda’s GDP and with vast minerals in the country, the sector has seen growth of investor appetite and increase in revenues, local production and export of certified processed products.
The sector also allocated Rwf2 billion to eight mining host-districts, which has led to social and economic transformation with tangible impact on Rwandan communities around mines.
Rwanda is one of the largest producers of 3Ts (tin, tantalum and tungsten) and high volume of precious gemstones (ruby, 4 sapphire, amethyst, tourmaline, aquamarine), precious stones (gold), and other minerals such as lithium, but also home to rare earth elements as well as beryl.
In this regard, the Rwanda government has set a target to increase mineral export earnings from $1.1 billion to $2.17 billion by 2029 under the NST2 (2024-2029).
“We cannot achieve this target if we continue doing business as usual. We must intensify our efforts to adopt environmentally friendly mining practices and advanced mineral exploration techniques. It is equally important that we develop our processing capacity and add value to our key minerals,” Ngirente said as he opened the week’s activities.
Following several cases of mining accidents in the recent months, Ngirente urged mining operators to only participate in legal mining activities and follow the rules and regulations in place.
“We ask you to follow the rules of the new mining and quarry operations law. Second, the Government will continue collaborating with strategic investors in mineral exploration activities, mineral value addition, as well as mineral trading,” Ngirente said.
Awareness campaign in a mining company from Rwamagana, Eastern Province
Some of the current challenges in the sector (including safety and health, lack of financing, practical skills and use of proper equipment), illegal mining and low uptake of safety and health measures among mine owners.
However, this year has left the mining sector with structural reforms aimed at the sector’s professionalization and competitiveness, introduction of a new law governing mining and quarry operations passed mid-July is poised to stamp out illegal mining and illicit mineral trade, a newly passed mineral tax law came to streamline mineral taxation, and the labor ministry stepping up measures to improve safety and health measures.
“I want to assure you that the Government is mindful of the remaining challenges the mining sector is facing. I am confident that with our collective efforts, we will find sustainable solutions to address them,” Ngirente stated.
According to the Rwanda Mining Association (RMA) new chairman. Leonidas Simpenzwe, the sector has grown but needs to do more to address these gaps.
“We have to change the way mining is done in Rwanda. We must recognize the challenges miners face and which require sacrifice and determination as miners are at the heart of our development,” Simpenzwe said, noting that they will advocate for the interest of miners to unlock potential of all stakeholders.
Francis Kamanzi
Rwanda Mines, Petroleum and Gas Board (RMB) CEO- Francis Kamanzi stated that the mining industry is capitalizing on professionalization and mechanization to boost national and local entrepreneurship, enhance livelihoods, and promote integrated rural social and economic development.
“Drawing on the extractive industry’s ability to significantly boost our economy, we are developing an industry aligned with the African Mining Vision and Agenda 2063, with an emphasis on essential minerals for the local industrialization and green energy transition,” Kamanzi said.
Kamanzi also noted that since mineral export earnings have kept an upward trend in 2024 drawing us close to the NST2 target, there are chances that the mining sector will make a substantial contribution to Rwanda’s foreign exchange reserves, and the target is to double the sector’s revenues and GDP contribution in the next five years.
