The government is set to invest more than Rwf8.47 billion in the development of Bugesera Tannery Park, which is expected to be completed by 2029. With the total project cost estimated at $15 million, the government’s contribution will go towards establishing critical infrastructure aimed at attracting private investors into the leather processing industry. The Minister of Trade and Industry, Prudence Sebahizi, presented a proposed budget to the Parliamentary Committee on State Budget and Patrimony, on Monday, May 12, as part of the ministry’s funding request for the fiscal year starting July 1. ALSO READ: Bugesera tannery park set to generate $430m annually “The project will be implemented in phases. Currently, we are focusing on the construction of an effluent treatment plant, which is being executed with a budget of Rwf1.7 billion,” Sebahizi told lawmakers. In addition, the government is clearing arrears totaling Rwf264 million owed to NPD, the contractor responsible for building roads within Bugesera Industrial Park. These are expected to be paid off by August this year. Recently, Prime Minister Edouard Ngirente highlighted the park’s revenue potential, noting that once fully operational, it is projected to generate an estimated $430 million annually at current exchange rates. He added that plans to expand cattle farming across the country will significantly boost raw material supply. ALSO READ: Govt courts investors for $15 million tannery park in Bugesera Currently, Rwanda generates approximately Rwf4 billion each year from hide production. With increased cattle farming, the volume of raw hides and skins is expected to rise to around 48,000 tonnes by 2029. Local leather producers outline expectations Esther Itangishaka, an owner of a tannery in Gisagara District, believes the park will help upgrade local capabilities. “I use the natural way of tanning. We still lack the machines advanced producers use. Their presence will allow us to learn and improve. We’ll get help with tasks we can’t currently manage, like refining hides,” she said. ALSO READ: From animal to market: Understanding the leather value chain Itangishaka hopes the park will promote innovation in the use of animal skins that are often discarded. “During a past YouthConnekt event, I once met counterparts from countries like Senegal and Ethiopia who process skins we usually throw away like rabbit and snake skins. If those innovations come here, we’ll be able to do much more,” she added. Itangishaka believes that beyond benefiting from improved access to materials and technology, local producers could become the investors in Bugesera Tannery Park. Marie Jeanne de Chantal Umuhorakeye, a leather artisan based in Gisozi Sector, Gasabo District, is looking forward to accessing better and more affordable raw materials after the completion of the tannery. “We buy from local suppliers, but the costs are high because they depend on imported chemicals. Transport and tax expenses make the final price unsustainable,” she said. “The cost of imported raw hides measuring 30 by 20 centimeters ranges from Rwf1,400 to Rwf1,800, while locally produced ones cost between Rwf1,000 and Rwf1,300.” The figures The New Times obtained from the Ministry of Trade and Industry indicate that Rwanda’s exports of hides and animal skins in 2024, were dominated by Kenya with more than two tonnes, followed by Uganda with more than one tonne. Rwanda has temporarily suspended an 80 per cent export levy on raw hides and skins sold outside the East African Community (EAC), a measure in effect from November 2024 to November 2026.
