Rwanda: Govt Secures $50m Investment for Plastic Packaging Factory

4 November 2024

The Rwanda Environment Management Authority (REMA) has announced the establishment of a new compostable plastic packaging factory as part of the country's ongoing commitment to eliminate non-biodegradable plastics.

The investment, valued at $50 million, will support Rwanda's push toward sustainable, eco-friendly packaging solutions.

Non-biodegradable plastics, which cannot decompose naturally, pose significant environmental risks, persisting in ecosystems for thousands of years. In contrast, compostable plastics degrade into organic matter within 60 to 180 days and can be composted alongside other household waste, ultimately benefiting the soil.

"Home compostable plastics offer a sustainable alternative to traditional plastics, decomposing naturally in home compost setups without leaving toxic residues," said Enock Nkubito, Business Development Specialist at Arth Biobag, the company leading the project.

This factory, with a production capacity of 100 metric tons per shift, aims to meet Rwanda's increasing demand for sustainable packaging.

The factory will initially operate in Kinyinya, before relocating permanently to the Kigali Special Economic Zone. Production will rely on biodegradable polymers, providing an alternative to conventional plastics in various sectors, including e-commerce, food packaging, agriculture, and waste management.

When operational, the factory is expected to produce 1,200 metric tonnes of compostable plastic products annually, significantly reducing Rwanda's carbon footprint.

Beyond Rwanda, the factory aims to supply neighbouring African countries with eco-friendly packaging solutions. Nkubito stressed that this project aligns with Rwanda's commitment to sustainable development and enhances its image as a regional leader in environmental stewardship.

The factory will produce a diverse array of compostable plastic items, including grocery bags, heat-shrinkable films, garden bags, sanitary pad covers, garbage liners, and biodegradable agriculture films.

Each product decomposes in natural conditions, eliminating the need for special treatment to break down, thus reducing the ecological burden.

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The facility's compostable packaging is particularly suited for sectors like agriculture and food processing, where environmental sustainability is critical.

With the capacity to mitigate approximately 1,200 metric tonnes of carbon emissions annually, this venture contributes to Rwanda's broader climate goals, supporting a low-carbon and climate-resilient future.

Driving innovation through local R&D

In tandem with the factory, an R&D Center will be established to innovate in biopolymer production, prioritizing locally sourced materials to reduce reliance on imports. This strategic move is expected to drive down costs and foster local expertise in sustainable materials.

"This initiative will provide SMEs in Rwanda with access to affordable, eco-friendly packaging options, promoting environmental responsibility and supporting industrial growth," added Nkubito.

Rwanda's global leadership on plastic pollution

Rwanda continues to play a leading role in the global effort to end plastic pollution. At the 16th Conference of the Parties to the Convention on Biological Diversity in Colombia, Rwanda's representatives advocated for a robust Global Plastics Treaty to end plastic pollution by 2040.

Rwanda's participation at international forums shows its dedication to environmental sustainability and positions the nation as an advocate for strong global action against plastic waste.

ALSO READ: Rwanda, Norway launch coalition to end plastic pollution by 2040

Rwanda's investment in this new compostable plastic facility exemplifies its proactive approach to sustainable development, aiming to inspire similar efforts across the African continent and beyond.

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