The government has outlined a series of measures aimed at accelerating infrastructure development in industrial parks after senators warned that inadequate roads, unreliable water and electricity supply, delayed expropriation and land speculation are slowing industrial investment.
Appearing before the Senate on August 3, Minister of Trade and Industry Antoine Kajangwe said the government is fast-tracking infrastructure works in priority industrial parks, completing planning studies and reclaiming idle plots from investors who fail to develop them.
The discussion followed Senate oversight visits, during which lawmakers found that several industrial parks still lack basic infrastructure despite being prioritised under the Second National Strategy for Transformation (NST2).
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Vice President of the Senate in charge of Parliamentary Affairs, Solina Nyirahabimana, said the findings reveal persistent bottlenecks that continue to discourage investment.
"There are industrial parks with no roads, while others have roads that are far shorter than what was planned. That has left investors who already own plots unwilling to develop them," she said.
She added that senators also found frequent electricity outages despite grid connections, recurring water shortages, delays in issuing construction permits and compensating affected residents, as well as cases of investors acquiring plots only to resell them at higher prices.
"There are still people living within industrial parks because expropriation has been delayed. We also found cases where landowners continue paying taxes based on outdated master plans that were later revised," she said.
Kajangwe acknowledged the challenges but said the government has completed master plans and feasibility studies for Muhanga, Musanze, Rwamagana, Rusizi, Huye, Nyabihu, Bugesera and the Kigali Special Economic Zone, creating a foundation for infrastructure investment.
Feasibility studies for Nyagatare Industrial Park are expected to be completed this year, while those for Rubavu are scheduled for next year.
He added that the Ministry of Trade and Industry (MINICOM) and the National Industrial Research and Development Agency (NIRDA) are also preparing master plans for district industrial zones.
Master plans for Gahanga, Masaka and Nzove have already been approved, while those for Kagasa, Kamuhanda in Kamonyi, Cyuve in Musanze, Kirehe, Kayonza and Gisagara are expected to be finalised by December.
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Infrastructure rollout
Kajangwe said infrastructure development is progressing across priority industrial parks.
In Muhanga Industrial Park, 3.4 kilometres of gravel roads under construction since April are expected to be completed by September before being upgraded to asphalt by July 2027. Another 7.75 kilometres of roads are planned by July 2028 and will be paved by July 2029.
The park is also set to receive an electricity substation in partnership with the Rwanda Energy Group (REG), while wastewater treatment facilities are planned for the 2027/28 financial year.
In Musanze Industrial Park, two kilometres of gravel roads have already been completed, with another 1.4 kilometres expected by December. The remaining 3.4 kilometres of asphalt roads are scheduled for completion by 2028, alongside water infrastructure, an electricity substation and internet connectivity.
Kajangwe said all 7.84 kilometres of planned gravel roads in Rwamagana Industrial Park have been completed and will be upgraded to asphalt under a World Bank-supported project expected to begin this year.
He added that expropriation has been completed in Huye Industrial Park and is 90 per cent complete in Rusizi. In Muhanga, about 600 people have been compensated at a cost of Rwf7.5 billion.
For Nyagatare and Rubavu industrial parks, expropriation will continue progressively as investors acquire land and financing becomes available.
Idle plots to be repossessed
Kajangwe said 405 investors currently hold plots in industrial parks across the country. Of their projects, 193 have been completed, 179 are under implementation and 120 have not yet started.
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Fifteen projects have fallen behind schedule, including five in Rwamagana, four in Musanze, four in Rusizi and two in Huye.
He said the government has begun repossessing plots from investors who fail to implement their projects within agreed timelines.
"We have already revoked six plots, five in Rwamagana and one in Musanze. This is only the beginning. We still have investors who have failed to meet the agreed timelines, and we will continue taking action," he said.
Senator Evode Uwizeyimana welcomed the move but urged the government to intensify enforcement.
"It is good that you have started revoking plots from investors who are not using them. That should continue so that industrial land is not turned into an object of speculation," he said.
Uwizeyimana also questioned why some factories continue operating outside designated industrial zones while authorities strictly enforce zoning rules for residential construction.
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"There should be fairness. Industries operating outside industrial zones should not continue to be tolerated," he said.
Senator Pelagie Uwera said revoking six plots was a positive start but remained insufficient given the number of undeveloped plots identified during Senate oversight visits.
"The repossessions are a good start, but the number remains small compared to the many plots that are still lying idle," she said.
More than roads
Several senators argued that industrial parks need more than roads and utilities to attract investors and workers.
Senator Marie Rose Mureshayankwano said some non-priority industrial parks remain underdeveloped despite years of planning.
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She cited Rusizi Industrial Park, where investors reportedly complain about the hilly terrain, and Huye Industrial Park, where a school still operates within the designated industrial area.
"The investors also told us they end up paying to relocate water channels that they were never informed about before acquiring the land," she said.
Senator Alphonse Nkubana urged the government to strengthen supporting infrastructure, including shared parking facilities and fire safety systems.
"There should be shared parking areas, but we also need faster fire detection and response systems to reduce losses when fires occur," he said.
Senator Uwimbabazi said some industrial parks employing thousands of workers still lack essential social services.
"There are industries with about 6,000 workers, yet nearby there are no adequate food services, accommodation or health facilities," she said.
Kajangwe said land will be allocated by July next year for shared facilities within industrial parks, including parking areas. He added that the government is working with the Rwanda National Police to strengthen digital fire detection and response systems.
On the sector's performance, Kajangwe said the government remains on course to increase industry's contribution to gross domestic product from 10.2 per cent to 12.7 per cent by 2029.
"In the last year alone, the industrial sector grew by 13 per cent, exceeding our annual target of 12 per cent," he said.
