Economy > Trade

Rwanda mulls deal with Chinese investors to develop textile industry

KIGALI
2016-01-13 08:11

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The Rwandan government is mulling a joint venture with Chinese investors to establish a garment factory in the capital Kigali, an official has said.

Speaking to tailors in Kigali, Minister of Trade and Industry, Francois Kanimba, said the Kigali garment factory, put at 1.3 million U.S. dollar, was expected to open by the end of 2016.

The investment would include the procuring of 670 machines to produce different types of clothes, according to officials. Rwanda wants to develop its own textile industry, cut imports of garments and create jobs through the factory.

Last year, imported clothes both new and second hand cost Rwanda over 100 million dollars. Every year, the East African nation is said to spend over 15 million dollars importing second hand clothes.

Kanimba said, to reduce the reliance on imported clothing, the government was seeking funds and skills from Chinese investors for the industry. "Recent study shows that among the economic platforms, tailoring tops opportunities for increasing more locally made products," Kanimba said, noting some imported "knitted clothes such as uniforms" can be made by locals.

He said the Chinese investors had also offered to train local tailors. Rwanda has two textile companies in Kigali, including the Chinese-run C&H Garments whose products are exported. C&H Garments has invested in computerized sewing machines and will train up to 400 local workers.

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