The last manufacturing company that was still adamant to relocate to the gazetted Kigali Special Economic Zone (KSEZ) has announced decision to move.
Relocation of 14 industries operating from Gikondo wetland in Kicukiro district started in 2013 and was supposed to be completed in 2016.
Since then, 7 companies including; Rwanda Foam, Aquasan, Uprofoam, Papyrus, Adma International, Sigma Paints and Soft Industries were relocated to KSEZ in Ndera sector.
The government provides a plot of land to every company relocating.
Construction of four other factories that had been operating in Gikondo including; Ameki color, Tolirwa, RTC and CBC is also at final phase, according Patrick Hagumimana, Advisor to the Minister of Trade and Industry.
Hagumimana however, explained that Premier Tobacco Company will not relocate “due to a new law on tobacco banning the growing and manufacturing of tobacco in the country. Minicom decided to discontinue the relocation and gave the plant financial compensation.”
As for Rwanda Industries, it changed its line of work and was given expropriation fees instead of a plot in SEZ.
Meanwhile, Afrifoam- a mattress and steel manufacturing company had remained adamant to relocate to SEZ citing the size of the plot of land offered.
“Our factory has heavy machinery that can fit at least on 2500 m2 of land while the government has set for us only 1200 m2,” Jeremy Kalisa, Managing Director of Afrifoam Group told KT Press.
Hagumimana, the Advisor in Minicom told KT Press that the land previously allocated to Afrifoam was given to new companies acquiring land at KSEZ following their slow progress on relocating.
However, when we contacted Afrifoam officials following days of searching for information on relocation plans, they confirmed to KT Press that they now have all necessary requirements to relocate.
“We have managed to purchase 15 000 m2 for full relocation including machines, offices and warehouses,” said Kalisa.
“The factory is ready to relocate at KSEZ at any time once the government completes constructing roads within the economic zone.”
Currently 32 industries and 15 warehouses are operating at Kigali KSEZ including the Rwf50 billion Africa Improved Food plant and many other Regional investments.
To acquire land at KSEZ, One needs to pay $62 per square meter to Prime Economic Zone, the Developer and apply for license at Rwanda Development Board.
KSEZ covers 276 hectares in Nyandungu, Gasabo sector donated by the government to help the existing industries operate in a favorable environment.
It was designed and developed to accommodate different types of industries including manufacturing, construction, and garment.