Members of Parliament have raised concerns over the continued underutilisation of Kigali Silk Factory, even as the government says efforts to secure a new private investor to run the facility are at an advanced stage.

The concerns were raised on January 22 during a session of the Parliamentary Committee on Governance and Gender Affairs, which reviewed issues related to the factory highlighted in the Office of the Ombudsman’s 2024/25 report.

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The report showed that out of 37 machines installed at the factory, only 15 are operational, leaving 22 idle.

During the session, officials from the Ministry of Agriculture and Animal Resources and the National Agricultural Export Development Board (NAEB) addressed challenges facing the agricultural sector, particularly losses linked to the absence of a private investor to manage silk industry and operate the factory located in the Kigali Special Economic Zone.

The Ombudsman’s report previously recommended NAEB and Rwanda Development Board (RDB) to work jointly to ensure productive use of the factory. It noted that the Ministry of Finance and Economic Planning (MINECOFIN) was following up on the search for an investor, while NAEB had submitted the required documentation and terms of reference to support the process.

Parliamentarians asked NAEB officials to explain measures in place to protect farmers from losses in sericulture and silkworm farming, which have been affected by the factory's limited operations.

Farmers feel the impact

Eugene Ngarambe, a sericulture farmer from Gatsibo District, said that when the Korean company HEWorks Rwanda Silk Ltd was operating in the sector, farmers benefited from regular training, study tours and access to key equipment. These included medicines, mulberry seedlings, rearing beds and iron sheets for silkworm sheds—some provided free of charge and others recovered gradually.

He said sericulture remains a relatively new activity in Rwanda that requires sustained sensitisation, training and equipment for farmers to fully understand its benefits.

"When the investor left, some farmers became discouraged,” he said, noting that silkworm farming is seasonal, with four to five production cycles a year.

Despite the absence of an investor, Ngarambe said NAEB continues to buy farmers’ produce, ensuring that cocoons do not go to waste.

Prices vary by quality, with first-grade cocoons sold at Rwf4,500 per kilogramme, second-grade at Rwf3,500 and third-grade at Rwf2,500, depending on feeding practices and silkworm health, the farmer said.

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Ngarambe said the sector requires substantial investment to achieve large-scale, high-quality production, adding that silk garments fetch premium prices on the market, implying potential for sericulture farmers.

He expressed optimism that a new investor would help mobilise more farmers by providing inputs, training and mulberry seedlings.

MPs question returns on investment

MP Anastase Nabahire, the house committee chairperson, acknowledged efforts to safeguard public investment in the factory, including the employment of technical staff.

However, he raised concerns about low productivity.

Nabahire questioned the returns generated from the investment, which includes machinery, infrastructure at six Cocoon Production Centres across the country and salaries for permanent staff.

"How much revenue does this investment generate when you combine the factory and the six centres?” he asked.

He also asked for clarity on annual income, operating costs and overall efficiency.

NAEB explains challenges, investor search

NAEB Chief Executive Officer Claude Bizimana said the factory currently operates machines used to process raw cocoons, while equipment required to convert cocoons into silk thread remains idle due to limited technical expertise.

He said budget allocated to the sericulture sector supports mulberry plantation management, operation of sericulture centres, supply of inputs and silkworm eggs, produce collection and payment, extension services, and partial operation of the Kigali Silk Factory. As a result, NAEB sells raw cocoons rather than processing them further.

The sector generates more than Rwf125 million annually from cocoon sales, which supports factory operations, staff salaries and maintenance of cocoon production centres. Cocoons are sold through public auctions in line with regulations governing the disposal of state assets.

"If we were to stockpile the raw material while waiting for an investor, it would deteriorate,” Bizimana said.

He added that NAEB, working with MINECOFIN and RDB, is pursuing long-term plans to secure a qualified investor, noting that several investors have expressed interest and discussions are at an advanced stage.

"We are confident that MINECOFIN will secure an investor for the sector in the near future,” he said.

Although NAEB had not yet provided details on the prospective investors, MPs heard that one of them is Chinese.

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Sector overview and outlook

Sericulture was introduced in Rwanda in 2003 under the Ministry of Agriculture and Animal Resources, with support from the International Fund for Agricultural Development (IFAD).

In 2016, NAEB attracted a private investor, HEWorks Rwanda Silk Ltd, which ceased operations in 2021. Since then, NAEB has managed the sector and implemented interim measures to sustain farmer participation.

According to NAEB, the sector is considered economically significant due to its potential to generate foreign exchange, reduce the trade deficit and create employment, particularly for women and youth. It currently provides livelihoods to more than 256 people each month.

NAEB operates six Cocoon Production Centres in Gatsibo, Gasabo, Gakenke, Nyanza, Karongi and Rusizi districts.

In the current fiscal year, farmers are paid Rwf4,000 per kilogramme of raw cocoons, compared with Rwf2,800 when HEWorks Rwanda Ltd was operational. The sector is projected to earn $205,582 (about Rwf300 million) in the 2025/26 fiscal year.