The Minister of Trade and Industry, Prudence Sebahizi, has shed light on why several industrial zones across Rwanda are yet to reach full operational capacity, noting that multiple factors influence investors’ decisions on where to establish their businesses.
Minister Sebahizi explained that investors consider several criteria before committing their capital. Some prioritize proximity to large consumer markets, while others focus on reliable infrastructure such as electricity, water, roads, and communication networks. “In zones where such facilities are still limited, setting up operations immediately becomes challenging,” he said. This highlights the difficulty of diversifying industrial growth beyond Kigali into secondary cities and districts where infrastructure is still being developed.
Other key considerations that affect industrial zone utilization include access to financing, limited availability of affordable, long-term funding, and high-interest rates, which remain barriers, particularly for domestic SMEs. The geographical features of certain sites require significant land preparation, affecting both costs and timelines. Additionally, the financial capacity of investors themselves influences their choice of location and the speed at which they can begin operations.
Despite these challenges, Minister Sebahizi emphasized that the government is actively working to ensure industrial zones become fully operational. Efforts include upgrading infrastructure, facilitating investment processes, and promoting available opportunities to attract more businesses. Rwf10 billion (approximately US$7.7 million) has been allocated in the 2025/2026 fiscal year for phased infrastructure upgrades in four priority industrial parks: Musanze, Rwamagana, Muhanga, and Bugesera. The funding will support essential facilities such as access roads, power supply, and water treatment.
Rwanda’s Investment Code provides several incentives to attract investors in manufacturing and export-oriented projects operating in industrial zones. Businesses investing at least $50 million (with 30% equity) in manufacturing, tourism, health, or energy projects can enjoy up to seven years of 0% corporate income tax.
Companies exporting at least 50% of their goods and services are eligible for a preferential 15% tax rate, while customs duties and taxes are waived for products used in Export Processing Zones. Additionally, new or used business assets in key priority sectors benefit from a 50% accelerated depreciation rate.
Minister Sebahizi stressed that the government remains committed to improving infrastructure, streamlining investment procedures, and promoting Rwanda’s industrial opportunities to ensure that all zones reach their full potential and contribute to national economic growth.
