The last manufacturing company resisting relocation to the Kigali Special Economic Zone (KSEZ) has announced its decision to move.
The relocation of 14 industries from the Gikondo wetland in Kicukiro District began in 2013 and was initially scheduled for completion in 2016.
To date, seven companies—Rwanda Foam, Aquasan, Uprofoam, Papyrus, Adma International, Sigma Paints, and Soft Industries—have successfully relocated to KSEZ in Ndera Sector. The government provides a plot of land to each company relocating.
According to Patrick Hagumimana, Advisor to the Minister of Trade and Industry, the construction of four additional factories—Ameki Color, Tolirwa, RTC, and CBC—is in its final stages.
However, Premier Tobacco Company will not relocate. “Due to a new law banning the growing and manufacturing of tobacco in the country, the Ministry of Trade and Industry (Minicom) decided to discontinue the relocation and provided the company with financial compensation,” Hagumimana explained. Similarly, Rwanda Industries, which shifted its line of business, received expropriation fees instead of a plot in KSEZ.
Afrifoam, a mattress and steel manufacturing company, was the last company resisting relocation, citing insufficient land allocation. “Our factory requires at least 2,500 square meters to accommodate our heavy machinery, but the government initially offered only 1,200 square meters,” said Jeremy Kalisa, Managing Director of Afrifoam Group.
Hagumimana noted that the land initially allocated to Afrifoam was reassigned to new companies in KSEZ due to Afrifoam’s delay in relocating. However, Afrifoam has since secured the necessary resources.
“We have purchased 15,000 square meters to fully accommodate our machinery, offices, and warehouses,” Kalisa confirmed. “The factory is ready to relocate to KSEZ as soon as the government completes road construction within the economic zone.”
Currently, 32 industries and 15 warehouses operate at KSEZ, including the Rwf 50 billion Africa Improved Food plant and other regional investments.
To acquire land at KSEZ, applicants pay $62 per square meter to Prime Economic Zone, the developer, and apply for a license through the Rwanda Development Board.
KSEZ spans 276 hectares in Nyandungu, Gasabo District, land donated by the government to create a favorable environment for industries. The zone is designed to accommodate various sectors, including manufacturing, construction, and garment production.
