Rwanda's garment factories currently supply clothing for just 5% of the population, but the government has plans to increase this figure significantly, according to Prime Minister Edouard Ngirente. Speaking to Members of Parliament on March 28, Ngirente outlined the government’s strategy to expand industrial production and exports for sustainable economic growth under the National Strategy for Transformation (NST2), which will run from 2024/2025 through 2028/2029. We aim to clothe 100% of Rwandans with locally-made garments, he stated. We are investing heavily in our domestic garment factories. ALSO READ: Bugesera tannery park set to generate $430m annually Following a ban on second-hand clothing, the government is encouraging private sector investment in the textile industry. Ngirente emphasised that Rwanda currently lacks sufficient local clothing production and that the government is committed to addressing this gap. We want to put significant effort into supporting these factories to offer affordable clothing to Rwandans, he said. The government is also working to create a stable market for locally produced clothing, which includes public school uniforms and other garments. Ngirente noted that this initiative could help the country save between Rwf17 billion and Rwf20 billion. Addressing high production costs While the government is moving forward, some MPs expressed concerns about ongoing challenges in the domestic textile industry. MP Balinda Rutebuka pointed out that, despite factory development, high production costs remain an obstacle, as the expense of raw materials makes local products costlier. Even locally made garments are more expensive compared to imported ones, Rutebuka observed, asking how the government plans to lower production costs and make these clothes more affordable. MP Christine Mukabunani also raised doubts about the feasibility of producing enough raw materials, such as cotton and silk, to support a thriving domestic garment industry. By 2029, will we have enough local raw materials to meet demand? she questioned. ALSO READ: What is holding back Made-in-Rwanda products? In response, Prime Minister Ngirente assured that fabric production would be scaled up, acknowledging the current reliance on imported fabrics for the textile industry. “We're identifying existing manufacturers to provide them with support while encouraging new players to enter the market,” he explained, adding that a new project to boost local fabric production would be implemented “soon.” Lowering garment prices through bulk orders One key strategy to reduce the cost of locally-made garments is economies of scale. Ngirente explained that production costs decrease significantly when large orders are placed, such as 200,000 school uniforms, compared to individual orders. The Ministry of Trade and Industry is working on arrangements to provide bulk orders to factories, which will help drive down costs. “We banned second-hand clothes to ensure Rwandans don’t wear outdated garments. We should therefore offer them affordable clothes,” he concluded, noting that larger orders would make locally-produced clothes more accessible. ALSO READ: What influences the purchase of Made in Rwanda apparel? Boosting employment and export potential Ngirente also stressed the job creation potential of the textile industry, which aligns with Rwanda’s goal of creating 250,000 jobs annually under NST2. The textile and leather sector is already showing substantial growth, with output increasing nearly fivefold from Rwf34 billion in 2017 to an estimated Rwf154 billion by 2024. This growth is expected to contribute to the economy by promoting import substitution, generating employment, increasing exports, and bolstering tax revenue.
