Rwanda Development Board (RDB) has told senators that demand for industrial land in the country’s economic zones continues to rise sharply, with the Bugesera Special Economic Zone recording an occupancy rate of 85 per cent in its Phase I. The update was presented on Wednesday, April 15, during a session with the Senate Committee on Economy and Finance, where officials from RDB’s Special Economic Zones Authority of Rwanda (SEZAR) appeared before lawmakers to report on progress and challenges in industrial park development. ALSO READ: Kigali Special Economic Zone to be doubled in size RDB Chief Investment Officer Michelle Umurungi told senators that Bugesera Special Economic Zone continues to attract significant investor confidence, with approved investments reaching about $100 million in the first phase alone. She noted that Phase I infrastructure, covering 100 hectares, is being developed under a public private partnership between the government of Rwanda and ARISE Integrated Industrial Platforms, through Bugesera Special Economic Zone Ltd, where the government holds 40 per cent shares and ARISE IIP holds 60 per cent. Umurungi said the zone has already recorded tangible progress in infrastructure delivery, including internal roads, water systems, wastewater facilities, and electricity networks. ALSO READ: Bugesera special economic zone targets to create $1.2bn in industrial value According to her presentation, 6.6 km of internal roads have been completed out of 16.68 km planned, while 6.5 km of water pipelines have been installed alongside a 2,500 cubic metre reservoir and firefighting water systems. On sanitation infrastructure, she said the zone has 7 km of sewer lines and one wastewater treatment plant in Phase I, with full completion expected to include 18.5 km of sewer networks and two treatment plants. Power supply infrastructure is also progressing, including a 110kV transformer that is 50 per cent complete, a fully completed substation, and 6.6km of electricity distribution lines. ALSO READ: Carpentry businesses in Gisozi to relocate to Special Economic Zone Kigali SEZ expansion and performance Kigali Special Economic Zone, established in 2010 following the merger of the Rwanda Free Zone and Kigali Industrial Park, was also highlighted as a key driver of industrial growth. Its development was initially entrusted to Prime Economic Zones, under a private management model. Officials said the zone has since developed extensive infrastructure, including 13.75km of internal roads, 49km of electricity and water networks each, 24km of fibre optic connectivity, and 17km of street lighting. The zone also has sewer systems supported by two treatment plants with a capacity of 3,000 population equivalent each. Over time, it has grown into a major industrial base hosting more than 230 industries, particularly in manufacturing, construction materials, and industrial equipment. The zone is reported to have created more than 20,000 jobs, while contributing significantly to exports estimated at about $290 million in 2025. Identified challenges and government response Umurungi also outlined several challenges affecting industrial park development and management, particularly in Kigali SEZ. She said that weaknesses in earlier contractual arrangements under the private management model led to degradation and inadequate maintenance of infrastructure. The government revoked the licence of Prime Economic Zones in January 2024. “Since then, RDB has taken over temporary oversight of the zone, working jointly with institutions including the City of Kigali, Water and Sanitation Corporation (WASAC), and Rwanda Energy Group (REG),” she said. “The government is engaging international investors to identify a new professional asset manager.” Need to accelerate new industrial phases RDB officials highlighted rising investor demand as a key driver for faster expansion of industrial zones. They said it is currently preparing master plans for Phase III and Phase IV, alongside feasibility studies to determine infrastructure requirements and costs. They also noted continued reliance on public private partnerships to ease pressure on the national budget. She acknowledged that some public private partnership arrangements faced implementation and contract management challenges. RDB said it has now strengthened its legal and contractual oversight structures and established a dedicated department to improve PPP management. Bugesera SEZ model was presented as a benchmark for improved transparency and efficiency. Senators raise concerns Senator Frank Habineza raised concerns over environmental compliance, asking how environmental impact assessments are conducted, how pollution from industries is managed, and what measures are in place to address the relocation of communities living near industrial zones. Senator Penine Uwimbabazi called for stronger coordination among institutions involved in infrastructure development, including water, electricity. Responding to the concerns, Umurungi said coordination challenges had been influenced by earlier financing and management models of the privately led development at Kigali Special Economic Zone. She explained that coordination among different institutions within the zone is now largely handled through private investors, who submit business plans for approval before operations begin. “In industrial parks where there is no private investor involvement in infrastructure development, the government takes full responsibility, including construction and maintenance,” she said. She added that in Kigali, RDB is now working closely with the Rwanda Energy Group (REG) and the Water and Sanitation Corporation (WASAC), following the exit of a previous partner. In the case of Prime Economic Zones, Umurungi said the earlier model was not sustainable. She noted that although infrastructure was developed and plots sold, payments were not structured in a way that ensured long term maintenance of the zones. On environmental and social impact assessments, she said the challenges were also linked to weaknesses in that model, which did not adequately address environmental management. She added that efforts are now underway, in collaboration with the Rwanda Green Fund and WASAC, to mobilise financing for environmental protection and prevent pollution.
