Nearly 400 property owners living within 500 metres of SteelRwa in Rwamagana District will be relocated under a plan aimed at creating a buffer zone between the steel factory, nearby communities, and the industrial park as authorities seek to improve public safety while support the expansion of the district's industrial park.

The relocation, approved by the district administration as a project of public interest, will affect 399 property owners in Munyiginya Sector and 129 spaces for agricultural land.

Rwamagana District Mayor Radjab Mbonyumuvunyi said the buffer zone will protect nearby communities from industrial activities while allowing factories to operate more efficiently.

"Relocating these residents aims to create a buffer zone so that communities are not affected by industrial activities while allowing industries to operate without restrictions," he said.

Homeowners will receive financial compensation as well as residential plots at the Binunga planned settlement site.

"However, people who cultivate land within the affected area but live elsewhere will receive compensation for their affected property interests," he noted.

The affected properties cover a combined 111,259 square metres, while the prepared Binunga resettlement site spans 90,844 square metres.

The decision to relocate residents follows a government assessment that found that moving nearby communities would be significantly less costly than relocating the factory itself.

During a parliament session in March 2026, officials told members of parliament that relocating the affected property owners is estimated to cost about Rwf12 billion. SteelRwa, has operated in Rwamagana since 2008 and manufactures steel reinforcement bars from recycled scrap metal.

The relocation also supports the district's long-term ambition to expand its industrial base.

Rwamagana's industrial park currently covers 80 hectares, with plans to add another 100 hectares to attract more investment. The park hosts 17 operational factories, while several others are nearing completion, and currently employs between 2,500 and 3,000 workers, according to the district.

"We have a vision of developing a sufficiently large industrial park. We currently have 80 hectares, and another 100 hectares will be added. This expansion will increase production capacity and create more employment opportunities for our residents," Mbonyumuvunyi said.

To support the expansion, the district, in partnership with the Ministry of Trade and Industry (MINICOM), is upgrading infrastructure in the industrial park. Internal roads are being paved, electricity is already available, while the Karenge Water Treatment Plant, which is nearing completion, is expected to improve water supply to the industrial park and surrounding sectors.

Some residents, however, say delays in compensation have left them unable to invest in or renovate their homes.

"Our projects have stalled because our properties were valued, but we have not yet received the compensation," one resident said.

"Some houses need renovation, but we cannot carry out the work. We ask the authorities to pay us the assessed compensation as soon as possible so that we can move on with our lives."

The relocation project, according to officials is set to balance industrial expansion with the wellbeing of surrounding communities, as the district positions its growing industrial park.