The Rwandan government is stepping up its support for the country’s leather industry with a major investment in the upcoming Bugesera Tannery Park. More than Rwf8.47 billion (around US$5.89 million) will be spent to build essential infrastructure, aiming to attract private investors into the leather processing sector.
Trade and Industry Minister Prudence Sebahizi shared the details during a presentation to the Parliamentary Committee on State Budget and Patrimony on May 12, 2025. This funding is part of the ministry’s budget plan for the financial year starting July 1.
“The project will be implemented in phases. Currently, we are focusing on the construction of an effluent treatment plant, which is being executed with a budget of Rwf1.7 billion”
Prudence Sebahizi
Minister of Trade and Industry, Rwanda
That amount is equal to about US$1.18 million.
Alongside the new facility, the government is also settling outstanding payments worth Rwf264 million (around $183,765) to NPD, the contractor in charge of building roads in the Bugesera Industrial Park. These arrears are expected to be cleared by August this year.
The park is seen as a future revenue driver. Prime Minister Edouard Ngirente has estimated that once fully operational, it could generate around $430 million each year.
He also mentioned that efforts to increase cattle farming across Rwanda will ensure a steady supply of raw hides and skins.
At present, Rwanda earns about Rwf4 billion (approximately US$2.78 million) annually from hide production. But with more cattle being raised, the production is expected to grow to 48,000 tonnes by 2029.
Government data shows that Kenya and Uganda remain the top export destinations for Rwanda’s hides and skins in 2024. To support local production, Rwanda has paused the 80% export tax on hides and skins sold outside the East African Community. This suspension will remain in place from November 2024 to November 2026.
