The Ministry of Commerce will spend Rwf2.5 billion in the development of a new industrial park in the Free Trade Zone (FTZ) which is located in Nyandungu, Gasabo District.
This follows the government’s decision to relocate the park in order to conserve the environment since it is located in a wetland.
A memorandum of understand to flag off the development of FTZ was signed yesterday between the ministry and developers.
According to officials, there are currently 14 factories in Gikondo and these will be relocated in two phases.
“These factories were built in a wetland and this is hazardous to the environment, and the structures are old. This calls for relocating them not only to an environmentally friendly area, but also with better facilities,” said Emmanuel Hategeka, the Permanent Secretary in the Ministry of Commerce.
The MoU was signed between Hategeka and the board chairman of FTZ, Jack Kayonga.
“The new industrial area will possess buildings that conform to international standards so this will attract more investors, leading to economic growth.” Hategeka added
According Kayonga, the move will also allow industries to upgrade their technology, hence increasing their competitiveness in the region.
Hategeka urged owners of industries in Gikondo to cooperate to make the exercise run smoothly.