The government has so far mobilised Rwf27 billion, or about 11 per cent of funding required to fully develop industrial parks across the country, according to the Minister of Trade and Industry, Prudence Sebahizi.

He told the Senate Committee on Economy and Finance on Friday, April 17 that this funding gap, which has persisted since 2013, has hindered the establishment of essential infrastructure like roads, water, and electricity, and led to slowed investor uptake.

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However, the minister presented a recovery plan under the second National Strategy for Transformation (NST2), where the government has strategically narrowed its focus to four priority industrial parks, Bugesera, Musanze, Rwamagana, and Muhanga.

"To address infrastructure challenges, we prioritized these four zones ,which require a total investment of Rwf127 billion. By 2029, these zones are projected to create 63,507 jobs and generate Rwf1,463 billion in revenues," Sebahizi told the senators.

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He said that the industrial zones in Rwamagana and Musanze have already achieved 100 per cent land compensation. In Bugesera, infrastructure development has reached 81 per cent, while Rwamagana stands at 45 per cent, Musanze at 32 per cent, and Muhanga at 35 per cent.

Senator Frank Habineza expressed concern over the funding gap, questioning how the ministry intends to meet its targets if the budget remains constrained.

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"If 10.7 per cent has been allocated so far, what are the specific measures to ensure the remaining funds are secured to support investors?" he asked.

Senator Fulgence Nsengiyumva, the Senate committee chairperson, stressed the need to maintain targets of over 10 per cent growth.

He added that members of the private sector have raised concerns about individuals who anticipate that certain areas will be designated for industrial parks and purchase land in advance, only to later resell it to investors at exorbitant prices.

Minister Sebahizi explained that the government is increasingly leaning on Public-Private Partnerships (PPP) to bridge the gap. He cited the Bugesera Special Economic Zone (BSEZ) as a success story, where a private investor is managing its development and supporting businesses.

"The approach is currently under review to assess whether it can be applied to other zones in the future,," he said.

"Currently, it is not being implemented uniformly, as the investor in such cases sets their own costs for the plots on those who want to invest in the zone, which could be hiked to an extent it could discourage local investors,” he said.

He said those engaging in land speculation should refrain from the practice, as they cannot predict when their land will be required. When expropriation occurs, compensation is determined in accordance with the law, based on the assessed value of the property, the Minister warned.