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RDB’s Niyonkuru on how Rwanda plans to reboot its manufacturing sector
In December 2020, Rwanda adopted the ‘Manufacture and Build to Recover Program to fast-track private sector investments in manufacturing and construction, hence boosting economic recovery efforts with specific incentives and key performance indicators. Zephanie Niyonkuru, Deputy CEO at Rwanda Development Board joins CNBC Africa for more.
Fri, 26 Feb 2021 16:02:05 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Rwanda's manufacturing sector experienced a downturn in the midst of the COVID-19 pandemic, with a projected 6.3% decrease in GDP for the fiscal year 2020-2021.
- The 'Manufacture and Build to Recover Program' introduced by the Rwandan government aims to boost the manufacturing industry by offering incentives to existing companies and new investors, including tax breaks on imported materials.
- The program has already shown positive outcomes, with a resurgence in manufacturing activities fueled by heightened demand in processing, construction materials, and fast-moving consumer goods, signaling a promising trajectory for Rwanda's manufacturing sector.
Rwanda's manufacturing sector is on the path to recovery after facing significant challenges due to the COVID-19 pandemic. The sector was severely impacted by the global crisis, with a projected decrease of 6.3% in the GDP for the fiscal year 2020-2021. However, recent data indicates a notable rebound in manufacturing activities, driven by increased demand in key areas such as processing, construction materials, and fast-moving consumer goods. Zephanie Niyonkuru, Deputy CEO of the Rwanda Development Board, sheds light on Rwanda's efforts to revitalize the manufacturing sector through the 'Manufacture and Build to Recover Program' aimed at attracting private sector investments and spurring economic growth. The program offers a range of incentives to existing companies and new investors, including tax breaks on imported materials, to encourage expansion and new ventures in manufacturing. This strategic initiative has already shown promising results, with a noticeable uptick in manufacturing output and positive growth rates in key sub-sectors. Rwanda's trajectory towards economic resilience and sustainability hinges on the success of its manufacturing industry, and the government's proactive measures signal a hopeful outlook for the sector's future.
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