{"id":89422,"date":"2024-11-09T13:53:02","date_gmt":"2024-11-09T13:53:02","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/how-rwandas-first-steel-processing-plant-will-impact-economy"},"modified":"2024-11-09T14:49:06","modified_gmt":"2024-11-09T14:49:06","slug":"how-rwandas-first-steel-processing-plant-will-impact-economy","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/economy\/how-rwandas-first-steel-processing-plant-will-impact-economy","title":{"rendered":"How Rwanda’s first steel processing plant will impact economy"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>Rwanda is set to establish its first iron and steel processing plant as it looks to cut metal imports, officials say.<\/p>\n

According to Antoine Kajangwe, the Permanent Secretary at the Ministry of Trade and Industry (MINICOM), the plant scheduled to be ready by 2025 aims to reduce metallic imports, increase exports, and contribute to economic growth and job creation in line with the National Strategy for Transformation (NST2).<\/p>\n

“It will play a significant impact in industrialisation, but most importantly, by reducing trade deficits so as to increase our exports,\u201d Kajangwe said during its groundbreaking event in Musanze Industrial Park, on Thursday, November 7.<\/p>\n

“A processing plant like this is part of the NST2 target of achieving 10 percent annually for industrial growth and as a contribution to the national GDP. It will contribute to job creation, with considerable backward and forward linkages and value addition to minerals. It’s a significant contribution to the national economy.”<\/p>\n

The iron processing plant, a $20 million investment, is set to be the first in Rwanda and fourth in East Africa. It will use the country’s iron ore deposits from Butaro, in Burera District.<\/p>\n

For the Mayor of Musanze District, Claudien Nsengimana, the establishment of such a processing plant in the district “will scale up the economy and livelihood of the community” as well as increase its visibility.<\/p>\n

It is estimated that the iron processing plant will have a production capacity of 250,000 tonnes per year, according to the Indian company, A1 Iron & Steel Rwanda Ltd., establishing the plant.<\/p>\n

Steel and iron products like TMT iron bars, hollow sections, wire rod coils, angles, channels, flat bars, binding wire, and welding rods will be manufactured locally at an affordable price, officials noted.<\/p>\n

\u201cWe will be using the country’s iron ore deposit from Butaro district, and this process will increase the phase value of the Rwandan steel market,\u201d said Himanshu Tiwari, the Managing Director of the company.<\/p>\n

\u201cAfter extensive market research and feasibility studies, we have identified Rwanda as a strategic location for our plant due to its stable economic environment, investor-friendly policies, and commitment to sustainable development.\u201d<\/p>\n

ALSO: Musanze district targets conference tourism<\/p>\n

Speaking to The New Times, Mridu Pawan Das, the High Commissioner of India to Rwanda, reiterated the mutual good relations between the two countries.<\/p>\n

\u201cIndia and Rwanda have very close bilateral relations, and there is a huge friendship between our populations. Our relations keep going higher and higher,\u201d he said, noting that more investors are going to come to Rwanda given the \u201cgood investment climate and political stability.\u201d<\/p>\n

The establishment of the processing plant in Musanze District is expected to boost the region\u2019s economy, increase visibility, and creating opportunities for residents who anticipate job opportunities from the plant.<\/p>\n\r\n