The planned tannery park, initially earmarked for construction in the Bugesera Special Economic Zone (BSEZ), is set to be relocated after BSEZ's new contractor declined to host the facility. Speaking to The New Times, Minister of Trade and Industry Prudence Sebahizi said the government has commissioned a feasibility study to identify an alternative location. ALSO READ: Investors eye leather factories as Rwanda pledges to establish tannery park This is after Arise IIP, the company which has taken over management of the special economic zone, declined to host the tannery the park, estimated to require an investment of more than Rwf8.4 billion. We started the study which will be completed by March,” Sebahizi said, noting that it will assess costs, environmental impact and other technical considerations before recommending the most suitable site. According to the minister, the consultant undertaking the study has been working on it in September last year. ALSO READ: Govt to inject over Rwf8bn into Bugesera tannery park Sebahizi added that the relocation will not affect the overall timeline of the tannery park project, which was initialy expected to be completed by 2029. “The tannery park remains a priority project. Once the feasibility study is done and funding is available, the establishment of infrastructure will not take long,” he said. Attempts to establish why Arise IIP declined to host the project in the zone were unsuccessful as its management declined to comment. Hides dealers favour Kigali Jean d’Amour Kamayirese, president of the Rwanda Leather Association, said that while the government is exploring relocation options, leather dealers would prefer the tannery park to be built near Kigali. He explained that the majority of slaughterhouses and leather operators are based in the city, making proximity a key factor. “About 70 per cent of leather operators are in the City of Kigali. If the park is established in or near the city, it will be much easier for us. Long distances increase transport costs and create logistical challenges,” Kamayirese told The New Times. Kamayirese said that though there could be some delays in establishing the tannery park, the sector is not overly concerned, citing improved market conditions compared to previous years. He noted that prices for hides have risen significantly since trade barriers outside the East African Community were lifted. “A kilogramme of cow hide that used to sell for Rwf100 now goes for about Rwf400, while a whole goat or sheep skin that sold for Rwf400 now fetches between Rwf1,300 and Rwf1,400,” he said. The tannery park is intended to position Rwanda as a regional hub for leather processing and manufacturing.
