Rwanda has signed a memorandum of understanding with Chinese garments manufacturing company (C&H), that will see the setting up of up a garments manufacturing plant worth $10million (approximately Rwf7billion) at the Kigali Special Economic Zone.
The deal will boost China’s interests in investing in Rwanda but also uplift and open completion in the garments manufacturing sector which has predominately been monopolised by a few investors such as Utexrwa.
Helen Hai, the Director of C&H said that the investment will see the shipping of new equipment from China and recruitment of 200 workers in September 2014.
In the deal, the government of Rwanda will fund 50% of the cost of the training programmes while the investor will provide the equipment and any other expertise.
Clare Akamanzi, the Chief Operating Officer at Rwanda Development Board said that “This investment will boost the local manufacturing sector, in terms of diversification of our export base, provision of a new skillset and creation of jobs for Rwandans. We look forward to seeing Rwanda create ‘home made’ garments that will be commercially successful in both domestic and export markets.”
The move will be an additional effort to Rwanda’s ambitious budget 2014/15 which has its focus on increasing exports and Gross domestic product, scaling up industrial manufacturing and developing a broad base of skills in manufacturing is in line with achieving the goals of Rwanda’s Second Economic Development and Poverty Reduction Strategy (EDPRS2) programme.
C&H garments Company owners are highly experienced in the manufacturing sector. Hel-en Hai has successfully set up and managed the fast growth of Hua Jian, a Chinese shoe producer.
Between 2010 and 2012, the factory trained and employed 2,000 workers and exports to the US and Europe rose to $12 million per year making Hua Jian the largest shoe exporter in Ethiopia.