Given the positive impact of the Manufacture and Build to recover programme over the last two years, it is evident that Rwanda needs more of such innovative and targeted interventions to address our unique challenges, Prime Minister Edouard Ngirente has said.
He made the remarks on Thursday, March 2, while officially presiding over the extension of the programme by two years, during the Invest Rwanda forum.
The manufacture and Build to Recover initiative aims at fast-tracking private sector investments in manufacturing, construction, agro-processing and boosting economic recovery from Covid-19 efforts.
Introduced in 2020, the programme also offers specific incentives for businesses in the three sectors with the aim of reducing the import-export gap, among others.
According to Ngirente, these sectors were identified as critical drivers of growth through value addition, job creation, and enhanced production to recapture Rwanda's domestic market and diversify its exports.
"It is important to note that this innovative program was developed out of dialogue between government and the private sector, and therefore indicates the critical role of strong partnership between the two entities."
In the beginning, he explained, the Manufacture and Build to recover program (MBRP) indicated clear targets to mobilize investment totaling $1.17 billion and create almost 27,000 jobs, a projection Ngirente said had been surpassed.
"We are now beyond that. We are pleased to note that the program has surpassed these targets."
According to the data, Ngirente said, the projects that have been approved under the program are worth more than $1.75 billion and are expected to create more than 35,000 jobs, exceeding the set targets.
Over 100 projects in the manufacturing, agro-processing, construction and real estate sectors are benefitting from the incentives with 26 now fully operational, 44 are at different stages of construction
"I would like to thank all of the members of the private sector, who have actively participated in this program to expand their businesses or start new ones. It is because of you that this success has been achieved."
He added, "I also take this opportunity to encourage those who have not taken advantage of this program to do so while it is still available."
The premier also said that the incentives offered under the program are very unique and extensive and will contribute significantly towards scaling your investment projects, exploring additional opportunities within value chains or starting new business ventures.
"We must continue building on the success of such programs and ensure strong collaboration between government and the private sector to stimulate even stronger economic growth."
Profitable venture
The recovery of the economy is on track and investing in Rwanda is profitable, according to Ngirente.
"We invite private sector players to fully maximize this initiative. We would like to see much stronger uptake of the program during this extension."
Ngirente highlighted that the role of a robust private sector that actively invests in the productive sectors of the economy is now more important than ever as we face various economic shocks.
"It is important to build strong enabling ecosystems that allow the private sector to navigate these shocks and play a central role in building back our economies better, towards sustained growth."
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Despite the current global economic shocks, brought on by the COVID-19 pandemic and the global geopolitical tensions, Ngirente asserted that Rwanda's economy has shown strong resilience and recovery over the last two years from the effects of Covid-19.
Ngirente shared similar sentiments with various investors who participated during the ceremony.
"Investing in real estate right after Covid-19 was not easy but with the incentives, the project became more affordable. And now with the program being extended, we are looking forward to working on a new project," said Moise Nsengiyumva of Wild Urban International Developments.
Reacting on some of the recommendations raised by investors, Kampeta Sayinzoga, Chief Executive at the Development Bank of Rwanda said that the government is keen on bridging financial gaps in the private sector.
