The Rwandan leather industry is set for a boost following the launch of a $1 million (Rwf1.4 billion) project aimed at improving production capacity, value addition and export potential. Announced on Friday, April 4, the Leather Value Chain Project is funded by the African Development Bank (AfDB) through the Fund for African Private Sector Assistance (FAPA). ALSO READ: Inside Govt’s plan to boost local textile production According to Christian Twahirwa, the Director General of Industry and Entrepreneurship at the Ministry of Trade and Industry, this initiative seeks to attract both domestic and foreign investors, fostering a vibrant ecosystem in innovation and entrepreneurship. Twahirwa noted that the National Industrial Research and Development Agency (NIRDA) has conducted studies on green tannery technology aimed at reducing water waste and improving efficiency in leather processing. “With technology adoption, the tannery project will not only be an economic opportunity for Rwanda but also a step toward a sustainable green economy that balances development with environmental responsibility,” he explained. The Rwanda Development Board (RDB) is leading a study to develop a business case for a modern, eco-friendly tannery park to be located in Bugesera District, approximately 50 kilometres from Kigali. This tannery project will involve a comprehensive feasibility study to assess market dynamics, demand-supply equilibrium, and potential growth. ALSO READ: Bugesera tannery park set to generate $430m annually It will also include an environmental and social impact assessment to ensure sustainable practices and adherence to environmental protection standards. Fred Mugabe, an Industrial Policy Analyst at the ministry, emphasised the significance of the $1 million investment to support the private sector in leather value chain. “This funding is crucial because it is based on business case studies that demonstrate the profitability of the industry for investors, the government, and the private sector,” Mugabe said. “The plan is not just to establish a single tannery, but a full-fledged tannery park, complete with an effluent treatment plant that will handle waste from all leather-processing factories.” Rwanda currently produces around 6,000 tonnes of leather annually. “Given the growing demand, projections indicate that within the next five years, production could increase eightfold.” He also addressed concerns about the current low market value of raw hides and skins. “To mitigate this issue, the government has allowed leather traders to export their products internationally until the necessary infrastructure is in place to boost local value addition.” ALSO READ: Production of raw hides, skins projected to increase eightfold Dauda Foday Suma, Principal Industrial Development Officer at AfDB, reaffirmed the bank’s commitment to supporting Rwanda’s industrial development. “We are supporting our regional member countries in developing their industrial sectors, and Rwanda is among them. We recognise the high potential of the leather industry in creating employment and transforming the economy,” Suma said. “At the end of this initiative, we expect to have completed feasibility studies for the tannery park, which has been identified as a priority by the government.” He added the establishment of a modern tannery park would allow Rwanda to process its own raw hides and reduce dependence on imported leather. Once fully operational, the tannery park is projected to generate $430 million (approx. over Rwf600 billion at current exchange rate)] in annual revenue.
