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African firms to set up $12mn garment factory in Rwanda
09
Sep '16
A new RWF 10 billion ($12.44 million) garment and footwear factory will come up in Kigali, capital of East African nation of Rwanda, as two African companies have signed an agreement for the purpose. Albert Supply Ltd and Prime Economic Zone Ltd have entered into a renewable 5-year land lease agreement with Rwanda's ministry of trade and industry (Minicom).

As per the deal, the two companies will obtain 2.5 hectares of land to set up the factory, for which operation is expected to begin by July 2017, Rwandan media reports said.

 The deal was signed between textile investors and the ministry after the former complained about the costs of land in the area being too high. The land being provided to the companies is part of 5 hectares of land secured by the ministry in the Kigali Special Economic Zone.

Albert Supply will manufacture garments from cotton, leather and other raw materials, whereas Prime Economic Zone will produce belts, bags and shoes from leather.

Albert Supply is a competent investor which can bring about a change to influence others, said Francois Kanimba, Minicom minister of Rwanda.

The government of Rwanda is promoting domestic production and consumption through the 'made-in-Rwanda' campaign. Additionally, more than 400 tailors under the Kigali Garment Centre (KGC) are raising RWF 3 billion ($3.73 million) for a clothing factory. (KD)

Fibre2Fashion News Desk – India

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