Rwanda Tannery Park to Generate $430 Million in Annual Revenue Says Prime Minister Ngirente

Rwanda Tannery Park to Generate $430 Million in Annual Revenue Says Prime Minister Ngirente

Rwanda is set to make a significant leap in its leather industry with the establishment of a tannery park in Bugesera District, Eastern Province of Rwanda. According to Prime Minister Édouard Ngirente, the facility is expected to generate US$430 million in annual revenue, strengthening the country’s economy.

Ngirente made this announcement while presenting government strategies to enhance industrial production and exports for sustainable economic growth to Members of Parliament on March 28.

He emphasized that the tannery park aligns with Rwanda’s National Strategy for Transformation (NST2) 2024-2029.

Rwanda plans to expand cattle farming to increase hide production. The Girinka one-cow-per-family program has successfully supported livestock farming, but the country has lacked advanced processing methods for hides.

“We want to ensure that hides from our cows are not wasted but utilized effectively to contribute to the economy”

Prime Minister Édouard Ngirente

He pointed out that many countries have profited from leather industries, and Rwanda aims to implement modern processing techniques to create jobs and increase productivity.

Currently, Rwanda imports most leather products, including shoes. Ngirente emphasized that this initiative will allow the country to produce these goods domestically, reducing dependence on imports.

He also confirmed that investors are already lined up to operate in the tannery park.

“So far, we have been exporting hides in their raw form due to lack of processing capacity, Once fully operational, this tannery park will significantly boost processed hide exports and increase revenue.”

Prime Minister Édouard Ngirente

“The factory needs high-quality hides, which starts from proper slaughtering techniques”

MP Christine Kanyandekwe

To further strengthen the leather sector, Rwanda suspended an 80% development levy on raw hide exports outside the East African Community (EAC) in November 2024.

This measure, valid until November 2026, was introduced to address the challenge of accumulated raw hide stocks due to limited market demand within the region.

According to Rwanda’s 10-year industrial policy (2024-2034), the leather goods industry offers short-term opportunities in manufacturing boots and shoes for local markets and long-term prospects for exporting high-value products like bags and jackets.

This sector supports cattle farmers, tanneries, and related businesses, creating numerous job opportunities.

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Arshad

Arshad

He is an engineer specializing in Leather Technology, known for his keen interest in analyzing global leather, footwear, and leather goods markets & his ability to make complex information clear & accessible. 

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Rwanda Tannery Park to Generate $430 Million in Annual Revenue Says Prime Minister Ngirente