The government has invested heavily in industrial parks, modern machinery, energy infrastructure, and logistics systems as part of its long-term ambition to grow the manufacturing sector.
Yet despite these efforts, many factories are still operating below their installed production capacity, according to industry experts.
Sector practitioners say the challenge is no longer mainly about access to infrastructure or equipment, but about how effectively manufacturers convert those investments into consistent output through strong operational systems, skilled labour, and disciplined production management.
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Olivier Condo, founder of LeanEdge Consulting Ltd, a firm that advises manufacturers on operational excellence and industrial performance, said observations from factory visits in Rwanda show that capacity utilisation in many facilities ranges between 40 and 65 per cent.
"Many facilities have the machinery but lack the operational systems, including standard work, quality controls, and daily production management needed to run reliably at scale," he said.
Condo noted that industrial parks such as the Kigali Special Economic Zone (KSEZ), along with improved electricity access, transport, and logistics networks, have reduced operational barriers and strengthened Rwanda's attractiveness to investors.
However, he said better infrastructure alone does not automatically lead to stronger factory performance.
"While external conditions have improved, many firms still struggle to convert these gains into consistent, high-quality output because of internal inefficiencies," he said.
He cited challenges such as weak workflow design, high rejection rates that reduce throughput, and limited supervisory capacity.
"Inside the plant, you still find bottlenecks in workflow design, high rejection rates that reduce throughput, and supervisors who lack the tools to manage daily performance," Condo added.
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According to him, the issue reflects a broader challenge faced by emerging manufacturing economies: building strong internal systems and workforce capacity to sustain productivity beyond infrastructure investment.
Although Rwanda has expanded technical and vocational education, Condo said there remains a shortage of mid-level industrial professionals who are critical to factory operations.
"The mid-level tier, including production supervisors, quality leads, and process technicians who keep factories running day-to-day, remains thin. Yet this is the layer that took decades to build in mature manufacturing economies," he said.
Manufacturers also continue to face constraints such as limited working capital, fluctuating import costs, and supply chain disruptions, especially for imported raw materials.
"Access to affordable finance remains a significant barrier, particularly for working capital to manage raw material procurement cycles," Condo said.
He suggested that beyond attracting new investment, Rwanda needs structured programmes focused on improving operational performance within existing factories.
"Incentives exist to attract investment, but there is less structured support for helping existing manufacturers improve operational performance once they are up and running," he said.
Finance and economic expert Jean Claude Rwubahuka said Rwanda's next phase of industrial growth will depend less on infrastructure expansion and more on productivity and operational efficiency at factory level.
"Stronger management systems, workforce skills, and production discipline are now critical to helping factories operate at full capacity, reduce waste, and compete effectively in regional and global markets," he said.
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Rwubahuka noted that many factories still struggle with machine breakdowns, raw material shortages, poor scheduling, quality defects, and limited workforce capability. He said such bottlenecks can be addressed through systems such as daily production planning, preventive maintenance, quality control, and regular performance tracking.
"Capacity is not just about machines but systems. Rwanda's manufacturers can become more competitive by improving how they run, produce, maintain, measure, and sell. Productivity comes from strong management systems, skilled workers, and efficient operations," he said.
He added that strong internal systems not only improve productivity but also make factories more attractive to investors and financial institutions by demonstrating reliability, discipline, and predictable performance.
