Stakeholders in the textile and garment industry are calling for the establishment of a dedicated Special Economic Zone (SEZ) to accelerate growth, strengthen local production, and position Rwanda as a regional manufacturing hub. They argue that centralising production, integrating services, and providing modern infrastructure could reduce fragmentation within the sector, where producers, designers, and investors often operate in isolation, limiting efficiency and coordinated growth. The proposal emerged during the Textile and Garment CEO Forum, which brought together policymakers, private sector players, CEOs, and young innovators to discuss opportunities and gaps in Rwanda’s textile industry. ALSO READ: Inside Govt’s plan to boost local textile production According to the Private Sector Federation (PSF), if garments were processed locally using domestically sourced raw materials, the sector could generate up to 300,000 jobs within five years. Textile processing spans the entire value chain, from raw material sourcing, including cotton and fabrics, to garment manufacturing, fashion, and apparel design. However, the industry still relies heavily on imported fabrics, with limited investment in local textile processing. In 2024 alone, Rwanda imported approximately 27,144 metric tonnes of textiles, spending about $150 million, while local garment factories currently supply clothing for just 5 per cent of the population. Yvette Mukarwema, founder of Janiya Investment Ltd, a textile company in Muhanga, said a textile-focused SEZ could serve as a catalyst by bringing together key players across the value chain. ALSO READ: How Rwanda can boost the textile industry “If players across the value chain, from cotton processing and spinning to design and final production, operate within a single, well-supported ecosystem, it would reduce production costs, improve efficiency, and make locally made products more competitive,” she said. Industry players noted that while raw materials such as cotton can be sourced or grown locally, critical intermediate processes, including ginning and spinning, remain underdeveloped or disconnected. While Rwanda has attracted interest from foreign firms, participants stressed the need to ensure such investments contribute to knowledge transfer, job creation, and long-term industrial growth. Drawing comparisons with countries that have successfully built strong textile industries, stakeholders noted that targeted industrial zones have often played a central role in clustering expertise, attracting capital, and scaling production. ALSO READ: Govt, private sector move to streamline textile industry “There are opportunities to partner with companies from Asia and beyond, but we must position ourselves clearly. We should not only host these companies—we should grow alongside them. The zone could also integrate Rwanda’s growing creative sector, including fashion designers and artists, into formal industrial value chains,” said industry player Patrick Gatete. Jean-Guy Afrika, Chief Executive of the Rwanda Development Board (RDB), said the proposal is welcome and will be studied closely with relevant ministries and industry representatives. “The SEZ proposal is promising, and it aligns with existing government plans to strengthen the sector,” he said. Stakeholders also emphasised the need to invest in skills development, particularly for young people, to ensure they can actively participate in and benefit from the sector’s growth. ALSO READ: New textile investors enter local market “There is talent, especially among the youth, but we need structured programmes to nurture it and stronger links between education, training, and industry needs. Many students graduate with general design knowledge but lack mastery of specific skills,” said Claire Uwera, who owns a tailoring school. She added that reforming Technical and Vocational Education and Training (TVET) systems to promote specialisation would significantly improve workforce readiness. While stakeholders acknowledged government efforts to promote industrialisation through incentives and policy support, they called for more targeted interventions tailored to the textile sector. They also urged a coordinated policy response to address persistent structural barriers, including limited access to long-term, affordable financing, high interest rates, and restrictive lending conditions that exclude many small and medium enterprises. Additional challenges include regulatory uncertainty due to frequent tax and levy changes, limited access to modern technology, high logistics costs linked to Rwanda’s landlocked position, and expensive industrial energy tariffs. Stakeholders warned that without predictable policies, improved infrastructure, affordable financing, and targeted incentives, the sector’s ability to scale, attract investment, and compete regionally will remain constrained.
