The Ministry of Trade and Industry (MINICOM) has announced it will repossess ‘undeveloped land’ in industrial parks across the country.

The decision, according to Jean-Chrysostome Ngabitsinze, the Minister of Trade and Industry, was taken after investors failed or delayed to utilize the land which they were given in industrial zones.

He was responding to queries by Members of Parliament (MPs), on Tuesday, February 20, 2024 who reported investor delays in utilizing allocated industrial plots of land in Rwamagana, Bugesera and Rusizi districts.

The investor delays are part of inefficiencies in industrial parks which triggered the summoning of the minister.

The contract between MINICOM and investors who are given land in industrial parks says that the investor should ‘develop 70 per cent of the given land within 18 months’ considering what they planned in their project.

Failure to do so results in contract termination.

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"Three months ago we repossessed land on over 25 hectares in Rwamagana industrial park because investors were late to utilize it. People were doing speculation.

Because the land was being bought at low cost [$3 per one square metre], some people bought the land, got land titles and later sold it without utilizing it. The land should be developed within 18 months. In May, 2023, the deadline to develop the land had not been met,” he said.

"We are going to do an assessment in other industrial parks and repossess unutilized land. We are warning and informing investors who are speculating the land instead of utilizing it within the period agreed upon according to the contract,” he noted.

Status industrials parks’ development countrywide

Government has put in place two special economic zones-Kigali Special Economic Zone and Bugesera Special Economic Zone and eight industrial parks in Rwamagana, Muhanga, Nyagatare, Musanze, Huye, Nyabihu, Rusizi, and Rubavu.

ALSO READ: Kigali Special Economic Zone to be doubled in size

According to Ngabitsinze, Bugesera special economic zone lies on over 330 hectares.

"48 hectares of the zone have not yet been expropriated. There are already 11 factories with Rwf95 billion investment in operations. There are two other factories being constructed,” he said.

In 2022, the government of Rwanda and ARISE Integrated Industrial Platforms (ARISE IIP), a Pan-African company that designs, develops, finances, conceives and operates industrial ecosystems across Africa entered into a joint venture to develop Bugesera special economic zone.

Government holds a 40 per cent share while ARISE IIP owns a 60 per cent stake.

ALSO READ: Why joint venture to develop Bugesera special economic zone is timely

Rwamagana District industrial park sits on 80 hectares.

He said there are over 11 factories with $59 million investment operating in the industrial park while over 15 factories are still being constructed.

"Designs and expropriation were completed. Some basic infrastructure were also established but others such as the waste water sewage system are yet to be set up.”

The industrial park in Huye District has 50 hectares.

Investors have invested over $7 million in the Huye-based industrial park where three factories are running operations while three others are being constructed.

Musanze District-based industrial park has 167 hectares where only a cement factory was set up with $47 million investment.

"More investors are requesting to operate in it but we have not yet set up all required basic infrastructure. However, expropriation was completed,” Ngabitsinze said.

Muhanga District industrial park is on 63 hectares where four factories with over $100 million investment are operating while one is being constructed.

However, some residents have not yet been expropriated and not enough basic infrastructure has been established, he noted.

"We have a road map to fix the issues.”

Rubavu industrial park on 50 hectares was approved by the district council in June, 2023.

"The one previously proposed was near the border and the district had to designate another site.”

However, the zone is yet to be developed and utilized.

So far over 150 factories have invested $2 billion in the Kigali Special Economic Zone.

Nyagatare District industrial park will also become an agro-processing industrial park.

Nyabihu District industrial park will also become an agro-processing industrial park.

He said they are working with the United Nations Industrial Development Organization (UNIDO) to develop studies for agro-processing industrial parks in Nyabihu and Nyagatare.

Ngabitsinze said the government seeks to work with India-Exim bank, and another bank from Belgium among others to continue developing and complete the industrial parks in over next five years.

"We have reviewed industrial policy and developed a road map to complete the current industrial parks.”

ALSO READ: New policy to ease access to land in industrial zones

He added that under the National Strategy for Transformation (NST1), Rwf250 billion was spent on developing industrial parks and the private sector also contributed.

"Agro-processing industrial parks such as the one in Nyagatare should be expanded. We need to see the plan for expansion. We also want to know if there will be an industrial park for mineral processing,” MP Safari Théoneste Bigumisa said.

MP Elizabeth Mukamana called for lowering electricity tariffs for maize processing factories.

"We also need animal skins to reduce imports of tanned hides and skins and help Local manufacturers of leather products.”

Rwanda Housing Authority (RHA) has said that the government will make available over 9,000 hectares for investors who want to set up industries in different cities across the country by 2050.