RDB’s Louise Kanyonga shares plans to grow Rwanda's manufacturing sector

Rwanda, a country known for its stunning landscapes and vibrant culture, is setting ambitious goals to enhance its manufacturing sector and attract investments in the coming years. With a target to grow exports by 17% annually by 2024, the government has introduced initiatives like Made in Rwanda to bolster local production. To shed light on the country's strategy to achieve these targets, CNBC Africa sat down with Louise Kanyonga, the Chief Strategy and Compliance Officer at the Rwanda Development Board (RDB). Kanyonga highlighted the untapped potential in various sectors where local demand is currently being met by imports. She noted that during the COVID-19 pandemic, Rwanda successfully mobilized domestic manufacturers to address disruptions in the supply chain, revealing significant opportunities for local production. The sectors identified for growth include agro-processing, light manufacturing (such as textiles and garments), and construction materials like cement and ceramic tiles. One of the key challenges facing manufacturers is the cost of production, influenced by factors like the country's geographic location and high electricity prices. In response, the government is focused on expanding energy production capacity to reduce tariffs. By incentivizing industries to increase production and consume more electricity, Rwanda aims to achieve economies of scale, ultimately leading to lower energy costs for manufacturers. Discussing investment incentives, Kanyonga highlighted existing benefits for both domestic and international investors in the manufacturing sector. These incentives include duty-free import of machinery, equipment, and raw materials, as well as reduced corporate income tax for exporters. The government is also planning to review and expand these incentives to support smaller investors entering the manufacturing sector. Despite the challenges posed by the COVID-19 pandemic, Rwanda remains optimistic about attracting investments. Kanyonga acknowledged the impact of the global health crisis on investment projections for 2020 but expressed hope for a recovery in the coming year. While initial projections were scaled back due to the pandemic, Rwanda aims to close the year with significant investment activity and is looking forward to a potential rebound in 2021. With a focus on enhancing local production, reducing production costs, and attracting investments, Rwanda is positioning itself as a promising destination for manufacturing and business opportunities. By leveraging its strategic initiatives like Made in Rwanda and investment incentives, the country is poised to drive economic growth and create a more sustainable and resilient industrial sector.