Rwanda’s planned tannery park will no longer come up in the Bugesera Special Economic Zone after the new zone operator declined to host the project according to local news reports.
The tannery park was expected to attract an investment of over Rwf8.4 billion (~ $5.77 million). But Arise IIP which recently took over management of the zone chose not to accommodate the facility.
The Minister of Trade and Industry, Prudence Sebahizi confirmed that the government has now ordered a feasibility study to find a new location for the project.
“We started the study which will be completed by March. It will look at costs environmental impact and technical issues before we choose the best site. The tannery park is still a priority. Once the study is done and funding is secured building the infrastructure will not take long”
–Prudence Sebahizi, Minister of Trade and Industry
Government of Rwanda
The minister said the consultant working on the study has been engaged since September last year. She added that the relocation will not delay the overall project timeline which was earlier set for completion by 2029.
Meanwhile leather dealers want the project closer to Kigali. Jean d’Amour Kamayirese president of the Rwanda Leather Association said most leather activity happens in the capital.
“About 70% of leather operators are in the City of Kigali. Setting up the park near the city will reduce transport costs and avoid logistics problems.”
– Jean d’Amour Kamayirese, President,
Rwanda Leather Association
Kamayirese said delays are not a major worry for the sector as market conditions have improved. He pointed to rising hide prices after trade barriers outside the East African Community were lifted.
A kilogramme of cow hide that sold for Rwf100 (~$0.07) now sells at around Rwf400 (~$0.27). A goat or sheep skin that was Rwf400 now goes for Rwf1,300 (~$0.89) to Rwf1,400 (~$0.96).
The tannery park is meant to help Rwanda become a regional centre for leather processing and manufacturing. Despite the location setback the government says the plan remains firmly on track.
