Rwanda: Why Joint Venture to Develop Bugesera Special Economic Zone is Timely

The government of Rwanda and ARISE Integrated Industrial Platforms (ARISE IIP) , a Pan-African company that designs, develops, finances, conceives and operates industrial ecosystems across Africa have entered into a joint venture to develop Bugesera special economic zone.

The joint venture agreement was approved by the cabinet, last week.

Bugesera special economic zone is in Gashora sector, Bugesera district, approximately, a 15-minute drive away from the current location of the much-awaited Bugesera International Airport that's under construction.

The industrial park has a combined size of 330 hectares to be built in three different phases.

Arise IIP, which has entered into joint venture with Rwanda to develop the industrial zone, is currently present in Gabon with the Gabon Special Economic Zone (GSEZ), in Benin with the Glo-Djigbé Industrial Zone (GDIZ) and in Togo with the Adétikopé Industrial Platform (PIA).

The Pan-African company is also developing industrial zones in Côte d'Ivoire and Chad which will be mainly dedicated to the processing of local agricultural products.

The company is said to be driven by the pursuit of green growth and ambitious carbon reduction targets.

ARISE IIP is backed by two shareholders namely AFC (Africa Finance Corporation) and Africa Transformation and Industrialisation Fund (ATIF).

AFC is a pan-African Multilateral Development Financial Institution established in 2007 by sovereign African states to provide pragmatic solutions to Africa's infrastructure deficit and challenging operating environment.

ATIF is an investment company established in 2022 with aim to bring solutions to the gaps hampering African development.

Need for sewage treatment plant

Angelique Umwali, the Vice Mayor in charge of Economic Development in Bugesera District, told The New Times that the joint venture is timely considering that the industrial zone is still underdeveloped.

"So far seven industries are operational in Bugesera special economic zone and four industries are being constructed," she said.

She said that there are ongoing activities to supply clean water to every plot, sewage systems and firefighting systems.

"There are activities to be carried out by the ministry of trade and industry. Among those which are seeking funds include sewage treatment plant and phase one of the fence to be constructed," she said.

The recent report by the senate Committee on Economic Development and finance shows that while the 330 hectares for the Bugesera industrial park are fully expropriated, construction of phase one was at 70 percent equivalent to 100.hectares.

The zone also accommodates Rwanda's e-waste collection and recycling plant which started to operate in 2017 to dismantle and recycle 10,000 tonnes of e-waste annually.

Some of the anticipated factories in the zone include a bulk blending fertiliser and storage plant to, among others, produce market and distribute fertilisers and is set to be complete by next year.

There are also plans to have a modern tannery park in Bugesera District to reduce imports of tanned hides and skins as well as reduce the country's trade deficit

1,483 ha allocated to industrial parks in Bugesera

Rwanda Housing Authority (RHA) has said that the government will make available over 9,000 hectares for investors who want to set up industries in different cities across the country by 2050.

These industrial parks are needed only in 13 districts.

Of this, it said, 1,483 ha will be allocated to industrial parks in Bugesera district over the next 30 years.

In the new plan, 233 hectares have to be allocated to industry parks in Kigali city, 908 hectares in Muhanga, 1,226 hectares in Rwamagana, 1,483 hectares in Bugesera, 605 hectares in Nyagatare, 151 hectares in Huye, 333 hectares in Rubavu, 288 hectares in Rusizi, 424 hectares in Musanze, 238 hectares in Kirehe, 341 hectares in Karongi and 143 hectares in Nyabihu districts.

Currently, the land allocated to industries across the country is 1,200 hectares.

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