The government is banking on a tannery park set to be established in Bugesera District, Eastern Province, to boost the production of leather-derived goods, according to Prime Minister Édouard Ngirente.

Ngirente indicated that once fully operational, the tannery park is projected to generate $430 million (approx. over Rwf600 billion at current exchange rates] in annual revenue.

He made the statement while delivering a presentation on government actions to accelerate industrial production and exports for sustainable economic growth to Members of Parliament on Friday, March 28.

ALSO READ: Govt courts investors for $15 million tannery park in Bugesera

The tannery park, he explained, is one of the projects Rwanda is focusing on to drive its economic growth under the National Strategy for Transformation (NST2), which runs from 2024/2025 to 2028/2029.

He said that Rwanda plans to scale up its cattle farming, implying more production of hides.

"We have the Girinka one-cow-per-family programme, which has been effective for many years, but there has been no advanced way to process hides,” he added.

"Now, we are going to put in a lot of effort to ensure that the hides from our cows are not wasted but are instead utilised to contribute to the country’s economy,” he added, pointing out that the leather industry has proven to be profitable in countries that have already established it.

"We also want to implement it in a modern way that creates employment, increases productivity, and contributes to the growth of the country’s GDP,” he said.

ALSO READ: Investors eye leather factories as Rwanda pledges to establish tannery park

In addition to preventing damage to hides through processing, Ngirente pointed out that this initiative is expected to ensure that leather products, such as shoes—currently being imported—are made domestically.

He mentioned that investors are already available to operate in the tannery park.

"This tannery park will help us add value to the hides we have in the country. So far, we have been exporting most of them in raw form because we lacked the capacity to process them,” he said.

"It is projected that once this tannery park becomes fully operational, it will contribute to the country’s processed hide exports. It is expected to generate $430 million per year,” he stated.

MP Christine Kanyandekwe expressed her support for the tannery park, pointing out that measures to ensure the quality of raw materials would be crucial for its success.

"We greatly appreciate the tannery park being established, but it requires quality hides,” she said.

"The hides used in the factory must meet certain standards, starting from the slaughtering stage. It’s essential that the hides are well removed from the cows to meet factory requirements.”

ALSO READ: Why Rwanda suspended 80% levy on raw hides export out of EAC

According to the Ministry of Trade and Industry, since November 2024, Rwanda suspended an 80 per cent development levy it had imposed on export of raw hides and skins outside the East African Community (EAC) market in 2015.

The levy suspension will be in effect until November 2026, according to the Ministry of Trade and Industry, the ministry indicated.

On March 19, the Minister of Trade and Industry, Prudence Sebahizi, told The New Times that the reason behind the introduction of that levy was to encourage local value addition.

The decision was temporarily lifted because of recent reported issues of lack of enough market in the EAC regional market, which resulted into accumulated stocks of raw hides and skins that do not have markets, he said, adding that the government resolved to temporarily suspend collection of the development levy on export of hides and skins to the rest of the world, while it works on establishing a leather tannery industry.

According to Rwanda’s 10-year industrial policy, which runs from 2024 to 2034, the leather goods subsector presents short-term opportunities for producing items like boots and shoes for domestic markets, as well as long-term opportunities for high-value products like bags and jackets for export.

The subsector supports cattle farmers, tanneries, and related services, and can create numerous jobs. It also highlights that Rwanda's high-quality hides and skins provide a competitive advantage.