Huye has many of the ingredients needed for a thriving local economy: a large student population, fertile agricultural land, cultural and tourism attractions, a growing industrial base and proximity to regional markets.

Yet much of that potential remains underexploited.

Despite its advantages, the Southern Province district has struggled to attract investment at the pace local leaders and businesses would like.

Limited access to finance, infrastructure gaps, underdeveloped commercial property and lingering perceptions about the town’s economic prospects are among the factors holding back growth.

A recent visit by The New Times found a town where businesses are demonstrating what is possible, from avocado and coffee processing to commercial property development, but where significant opportunities in manufacturing, student accommodation, tourism and agro-processing remain largely untapped.

The challenge for Huye is therefore not necessarily a lack of economic opportunities, but turning the assets it already has into sustained investment, stronger businesses and more jobs.

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Rebuilding a business community

Part of the explanation lies in Huye’s economic history.

Gervais Butera Bagabe, president of the Private Sector Federation (PSF) in Huye District, said Huye, formerly known as Butare, developed around education, research and commerce, with the University of Rwanda and other institutions playing a central role in its economy.

However, the 1994 Genocide against the Tutsi devastated the town’s business community.

Bagabe said the Genocide claimed nearly 99 per cent of the prominent traders operating in the town, leaving survivors to rebuild businesses with limited resources.

"When the Genocide ended, rebuilding the town’s business community was almost like starting from zero,” he said.

The effects continue to be felt in some areas of the local economy.

According to Bagabe, some property owners hold land in strategic commercial locations but lack the capital to develop it to the standards required by the town’s master plan.

Others struggle to attract partners willing to invest in existing properties, particularly where buildings require substantial renovation.

Perceptions have also affected investor confidence, he said. The relocation of some institutional functions to Kigali has led some people to assume that Huye’s economic prospects have diminished.

Bagabe disputes that perception, arguing that the continued presence of educational institutions, government services and businesses gives the town a substantial economic base.

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"Doing business in Huye is absolutely possible, and people can make a profit here,” he said.

Student accommodation is one example. Huye’s large student population creates demand for housing, presenting an opportunity for investors to develop accommodation and potentially work with the university to connect students with suitable housing.

Manufacturing, health services, tourism and commercial property also offer opportunities, although the viability of individual projects depends on location, costs and access to necessary facilities.

Huye’s position along regional trade routes, including its proximity to Burundi and the Democratic Republic of Congo, could provide another advantage. However, Bagabe said periods of strained relations with Burundi have affected cross-border commercial activity.

Infrastructure and financing gaps

Even where opportunities exist, businesses still face practical constraints that can make investment difficult.

Dr Joseph Nkurunziza, principal of the University of Rwanda’s College of Business and Economics, identifies agro-processing, tourism, education and light manufacturing as sectors with significant potential to create jobs and support local economic growth.

But he points to gaps in industrial infrastructure and transport connectivity, limited access to affordable finance for small and medium-sized enterprises, and a mismatch between graduates’ skills and private-sector needs.

Together, these constraints can make it harder for businesses to establish themselves, expand, compete and employ more people.

Huye District Mayor Ange Sebutege also identifies unstable electricity supply and underused land in prime commercial locations as obstacles to growth.

The district is pursuing several measures to address these constraints, including developing infrastructure in the industrial park, promoting investment and supporting collective investment.

A 1.3-kilometre road in the industrial park has been completed, although further road connections are still needed. The district is also working on a substation, promoting green energy and seeking to make land available for investment.

"We are working to improve infrastructure in the industrial park and create conditions that allow businesses to operate and investors to develop their projects,” Sebutege said.

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The district is also planning an investment forum and working with the Rwanda Development Board and interested private companies to develop tourism opportunities.

There are signs that investor confidence can grow when suitable opportunities and infrastructure are available.

Bagabe points to commercial developments under construction near Ngoma Sector as evidence that investors are willing to commit capital to Huye.

He said demand for space in the new buildings had been encouraging, with ground-floor units already taken and only a few spaces remaining on the third floor at the time of his interview.

He also said Simba had signed a contract to operate there, while discussions with other businesses were at an advanced stage.

For Bagabe, such developments demonstrate the potential for viable projects to attract businesses and gradually strengthen confidence in the town.

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Agro-processing: Potential waiting to be scaled

Agriculture is another area where the gap between Huye’s resources and their full economic value is visible.

The district produces agricultural commodities that could generate greater returns if more of them were processed locally rather than sold with little added value.

At Avocare Ltd in Mbazi Sector, locally grown avocados are processed into oil for cooking and cosmetic use.

The company was established in 2019 partly in response to losses suffered by farmers when their produce went to waste.

Jean Leonard Uwambajimana, the company’s production manager, said avocados had long been associated with Huye, but their commercial potential was not being fully realised.

The company sought to address that problem by turning the fruit into products with a longer shelf life and greater value.

It currently employs eight permanent workers and is bringing in machinery designed to increase processing capacity. The business has also encouraged greater interest in avocado farming.

Uwambajimana said the company hopes to expand as production grows, creating additional opportunities for workers and farmers supplying the fruit.

Avocare’s experience illustrates both the opportunity and the challenge facing Huye. Processing agricultural produce locally can create jobs and markets for farmers, but scaling such businesses requires investment in machinery, production capacity and access to larger markets.

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Coffee provides another example

Simbi Coffee Investments operates three coffee-processing factories, two in Huye and another in neighbouring Nyaruguru District. Its operations create seasonal employment, including opportunities for students during school holidays.

Workers involved in sorting and preparing coffee earn income that can help meet household expenses and education costs.

For Sumaiya Uwimbabazi, an accountant who also studies at the University of Rwanda’s Huye campus, employment has helped her pay for school and support her parents.

The coffee sector shows how value addition can connect farmers, processors and workers while keeping more economic activity within local communities.

Nkurunziza argues that expanding agro-processing could generate employment, increase rural incomes and strengthen food security.

But improved infrastructure, affordable finance and stronger links between producers and wider markets will be necessary if these businesses are to operate at a larger scale.

Tourism assets yet to reach their full potential

Huye’s untapped potential is also evident in tourism.

The district has cultural, historical and natural attractions that could generate greater demand for accommodation, transport, restaurants and other services if they were better connected and marketed.

The Ethnographic Museum, which opened in 1989, offers visitors insight into Rwanda’s traditional architecture, craftsmanship, clothing, history and daily life.

Its grounds include a traditional compound known as ‘Kambere’, designed to show how an ordinary Rwandan household was organised.

Jerome Karangwa, the museum’s manager, said school groups form a significant share of visitors, alongside Rwandan adults and international tourists brought by tour operators.

But the museum is only one of several attractions in the area.

Karangwa points to traditional houses dating back to the 1940s, the University of Rwanda’s historic campus, the Ruhande Arboretum and the Ibisi bya Huye trail, which explores aspects of Rwanda’s history and landscape.

The challenge, he said, is connecting these attractions to create a broader visitor experience.

The museum itself has about eight hectares of surrounding space that could support additional activities, provided any development protects its cultural heritage.

Karangwa sees opportunities for traditional performances, cultural demonstrations and other experiences that could generate income while preserving heritage.

Greater public awareness and private-sector investment, he said, would help unlock this potential.

Hospitality could benefit from such development

The University of Rwanda’s planned five-star hotel is expected to attract conferences, academic events and visitors while creating direct employment and business opportunities for farmers, transport operators and other service providers.

But its wider economic contribution will partly depend on Huye’s ability to attract more visitors and encourage them to stay longer and spend more within the local economy.

What will it take to unlock Huye’s potential?

Huye does not lack opportunities.

Its universities provide a large population of students and skilled workers. Its agricultural sector supplies raw materials that can support processing industries. Its cultural and natural attractions provide a foundation for tourism, while its location offers potential connections to regional markets.

What has been missing is the combination of infrastructure, financing, investment confidence and market access needed to turn those advantages into larger-scale economic activity.

The district is attempting to address some of these gaps through investment promotion, industrial infrastructure and partnerships with the private sector.

Local businesses are also showing what can be achieved. Agricultural produce is being processed locally, commercial developments are attracting tenants, and cultural institutions provide a foundation for expanding tourism.

But attracting significantly more investment will require addressing the constraints that have prevented these opportunities from reaching their full potential.

Businesses need reliable electricity and transport infrastructure, affordable financing and viable markets. Investors need suitable land and commercial property. Tourism attractions need to be connected to accommodation, transport and other services, while local producers need the capacity to increase output and reach more customers.

Bagabe cautions against judging Huye solely through comparisons with other towns, arguing that each has its own history and development challenges.

For Huye, the task is therefore less about discovering new opportunities than making better use of those that already exist.

The town has the economic foundations for growth. Whether its potential remains largely untapped will depend on how effectively Huye can close the gap between the opportunities it possesses and the investment needed to turn them into businesses, incomes and jobs.