Rwanda, Djibouti sign MoU to develop Special Economic Zone land

Last week, the governments of Rwanda and Djibouti strengthened their already excellent bilateral ties by signing a joint venture agreement aimed at developing 10 hectares of land in Kigali, the capital of Rwanda. The agreement was signed between the Djibouti Ports and Free Zones Authority and Prime Economic Zones Ltd, a company responsible for the development and operation of economic zones in Rwanda. The exchange of lands between the two countries signifies a significant milestone in their relationship. Rwanda has given Djibouti four hectares of land in Kigali, while Djibouti has allocated 20 hectares of prime land for development in exchange. This partnership will involve the establishment of a joint venture to develop the 10 hectares of land in Kigali, with a focus on building infrastructure and advanced factory units ready for use by investors. According to the chairman of Djibouti Ports and Free Zones Authority, this collaboration is just the beginning of a long-term partnership between the two countries. He expressed his optimism about the future development of business relations, including the creation of a third corridor option connecting Rwanda to South Sudan and Ethiopia. The project is still in its early stages, but there are high expectations for its success. The joint efforts of Prime Economic Zones Ltd and Djibouti Ports and Free Zones Authority aim to simplify the process for investors looking to establish businesses in the region. By offering ready-to-use factory units, investors will be able to quickly set up operations without the need to purchase land or build new facilities. One of the key advantages of this partnership is the rapid development of infrastructure, as demonstrated by Djibouti's track record of completing major projects within a short timeframe. This commitment to efficiency and speed is expected to benefit the private sector and attract a significant amount of investment. In terms of job creation, the chairman of Djibouti Ports and Free Zones Authority revealed staggering projections, with an estimated 350,000 jobs expected to be generated solely in Djibouti as a result of this collaboration. This ambitious goal highlights the transformative potential of the joint venture between Rwanda and Djibouti. Overall, the memorandum of understanding signed between the two countries marks a significant step towards enhancing economic cooperation and creating new opportunities for growth and development in the region. The joint efforts to develop the exchange lands are set to bring about positive outcomes for both nations and further strengthen their partnership in the years to come.