The government may sign an agreement in July with a new investor to take over the Kigali-based silk factory and revive Rwanda's dormant sericulture industry. ALSO READ: Rwanda seeks investors to manage its silk industry This was said by Sandrine Urujeni, Chief Operations Officer at the National Agricultural Export Development Board (NAEB), who appeared before the Public Accounts Committee (PAC) to explain issues affecting the silk industry on June 30. ALSO READ: Rwandan silk farmers in dilemma after the exit of a Korean investor Sericulture is the rearing of silkworms to produce raw silk for the textile industry. It involves cultivating mulberry trees, whose leaves are fed to silkworms that spin silk cocoons. The cocoons are then processed into silk fibre used to manufacture fabrics and garments. According to Urujeni, the new investor is expected to take over Kigali Silk Factory and related assets, which have remained unused since 2020 following the exit of HEworks Rwanda, a subsidiary of Korean company HEworks. “The assets include sericulture centres, a silk processing factory, and equipment previously used to produce silk,” she said. She explained that the matter is now being handled by the Ministry of Finance and Economic Planning (MINECOFIN) through the department responsible for privatisation. “We are working closely with MINECOFIN and the Rwanda Development Board (RDB) to secure an investor who will revive the sericulture sector. We are in the final stages of negotiations with a prospective investor, who is currently assessing the assets before taking them over,” she said. Urujeni did not reveal the name of the investor. ALSO READ: Two prospective investors drawn to Rwanda’s silk factory “We had hoped to have signed the agreement by now, but discussions first focused on how the assets, including the land, mulberry trees and the factory, will be managed. The investor has also requested additional land to expand mulberry plantation, as well as government support through agricultural extension services. We are optimistic that the agreement will be signed in July,” she added. Status of the factory The silk factory based in Kigali Special Economic Zone has the capacity to process between 70-100 tonnes of silk cocoons annually. Hy October 2021, NAEB officials said at least $1.3 million had been invested in the silk factory. Out its 37 machines, only 15 are currently operational as NAEB continues to purchase cocoons and process them to ensure that farmers' produce does not go to waste. The factory currently operates equipment used to process raw cocoons, while machines required to convert the cocoons into silk thread remain idle because of limited technical expertise. Sericulture was introduced in Rwanda in 2003 under the Ministry of Agriculture and Animal Resources with support from the International Fund for Agricultural Development (IFAD). HEWorks Rwanda operated the silk factory since 2016. It ceased operations in 2021. Since then, NAEB has managed the sector and implemented interim measures to sustain farmers' participation. According to NAEB, the sericulture industry has significant economic potential, with the capacity to generate foreign exchange earnings, reduce the trade deficit, and create employment, particularly for women and young people. NAEB operates six cocoon production centres located in Gatsibo, Gasabo, Gakenke, Nyanza, Karongi and Rusizi.
