The overall industrial production in the formal sector increased by 7.1 per cent year-on-year, and by 9.4 per cent on an annual average basis in February, the latest Index of Industrial Production by the National Institute of Statistics Rwanda (NISR) shows.

However, the increase was slightly lower compared to the 7.4 per cent growth that was registered in January.

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The index, which monitors monthly trends in the output of industrial activities, shows that that mining and quarrying activities increased by 14 per cent, while manufacturing increased by 0.7 per cent.

Electricity production increased by 21.5 per cent, while water and waste management increased by 17 per cent during the period under review.

Claude Mwizerwa, Division Manager of Economic Statistics and Management of Database, National Bank of Rwanda, said that the increase in electricity production is mainly attributed to the supply from Rusumo Hydropower plant which started operations end of 2024.

The increase of production in manufacturing industries was driven by an increase in food processing of 5.2 per cent, manufacturing of metal products, machinery and equipment by 26 percent, and non-metallic mineral products by 28.2 per cent.

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However, the manufacturing of textiles, clothing and leather products decreased by 15.8 per cent,while beverages and tobacco decreased by 3.8 per cent.

Mwizerwa noted that the decrease in textile industry production that has been going on since November 2024 is not alarming, but a possible indication that the industry is stabilising following a boost it has had over the past few years.

He added that it is an indication that the Ministry of Trade and Industry should come up with a different policy to further boost the sector.