Rwanda has inaugurated its first integrated iron and steel processing plant as the country seeks to reduce its dependence on imported steel, create jobs and strengthen local manufacturing. Located at Musanze Industrial Park, A1 Iron & Steel Rwanda is expected to produce up to 250,000 tonnes of steel products annually, while creating thousands of direct and indirect jobs and opening opportunities for exports to regional markets. Here are five things to know about the $100 million factory owned by Indian investors. ALSO READ: New steel factory could halve Rwanda's $200m import bill 1. It is expected to create more than 1000 jobs One of the major anticipated benefits of the project is employment. A1 Iron & Steel Rwanda expects to create approximately 1,000 direct jobs, with a further 2,500 indirect jobs expected across its supply chain. The indirect opportunities are expected to span logistics, mining, transportation, maintenance, services, suppliers and other supporting industries. However, the company says the project is not only about creating jobs but also developing a skilled workforce capable of operating modern industrial systems. The plant is expected to give young Rwandans opportunities to work with sophisticated industrial equipment, advanced production systems and automation. The long-term ambition, according to the company management, is to develop a workforce capable of operating the facility and contributing to the expansion of Rwanda's industrial expertise across the region. With the domestic market as the initial focus, the facility also aims to position Rwanda as a supplier of steel products to neighbouring countries and the wider East African market. ALSO READ: How Rwanda's first steel processing plant will impact economy 2. It could reduce Rwanda’s steel import bill by about $100 million Rwanda currently spends around $200 million annually on steel imports, according to the Ministry of Trade and Industry. The establishment of a fully integrated domestic steel producer is expected to enable the country to replace part of those imports with locally manufactured products, keeping more value within the domestic economy. A1 Iron & Steel Rwanda projects that its investment could reduce Rwanda’s steel import bill by approximately $100 million over the life of the investment. The company says this would contribute directly to narrowing the country's trade deficit while conserving foreign exchange. The objective is to progressively replace imported steel products with high-quality steel manufactured locally. At the same time, the company sees opportunities to expand production and product varieties for export to neighbouring countries and the wider East African market. 3. The plant can produce 250,000 tonnes of steel a year A1 Iron & Steel Rwanda has established an integrated steel manufacturing facility with a planned production capacity of approximately 250,000 tonnes per annum. The plant uses an integrated production approach that is designed to transform iron-bearing raw materials through the direct reduced iron (DRI) route into steel, followed by steel melting, billet casting and the production of various downstream steel products. The investment comes as Rwanda pursues industrialisation, economic transformation and greater domestic production. Steel is a critical input in infrastructure and economic development. It is used in roads, bridges, buildings, factories, power infrastructure, water systems, agriculture and housing, among other sectors. Developing domestic capacity to produce steel could therefore strengthen Rwanda's broader industrial supply chain while reducing the need to import products required for construction and manufacturing. The company says producing locally what is currently imported will help conserve foreign exchange, support other local industries and increase domestic value addition. 4. It will produce a wide range of steel products The factory is expected to manufacture a broad range of products for construction, manufacturing, engineering and other industrial sectors. These include iron bars, TMT bars, round bars, wire rods, V angles, C channels, flat bars, hot-rolled strips, hollow sections, wire nails, binding wire, BRC reinforcement mesh, barbed wire and welding rods. According to the company, the products will be manufactured using locally sourced iron ore, supporting Rwanda's efforts to increase local value addition and build an integrated industrial supply chain. 5. It revives a long history of iron production in Northern province The new factory also has a historical dimension. The factory was linked with the modern steel plant to the region's long history of iron production. Officials said historical research, archaeological evidence and oral traditions show that iron was produced in the area centuries ago. Traditional iron products included weapons and agricultural tools. Among them were the famous steel garden hoes, known as amasuka y’amaberuka, which were known for their strength and durability. Furthermore, there is Ku Kirenge museum in Rulindo, which is dedicated to the history of iron production in ancient Rwanda. Weapons such as arrows and spears used in ancient Rwanda, as well as agricultural implements, were produced in the region. The inauguration of A1 Iron & Steel represents more than a modern industrial investment, said Maurice Mugabowagahunde, Governor of Northern Province, it is also a revival, on a much larger scale, of a long-standing tradition of iron production in the region. The factory's launch marks a step in the country’s efforts to develop domestic steel production, with the government and investors looking to turn the country's demand for steel into an opportunity for local manufacturing, employment and regional trade.
