Officials at the inauguration of the A1 Iron & Steel Rwanda Limited in Musanze district.
MUSANZE – Rwanda imported more than $150 million worth of steel products in 2025, but with the opening of A1 Iron & Steel Rwanda Limited in Musanze, the government now wants more of that money to stay in the country.
The factory, which started production in April 2026, has a planned capacity of about 250,000 tonnes of steel a year and produces reinforcement bars, nails, pipes and other products used in construction and infrastructure.
Prime Minister Justin Nsengiyumva, who officially inaugurated the plant in Kimonyi Sector, said the investment should help Rwanda reduce its dependence on imported steel and capture more value from its own raw materials.
“A1 Iron & Steel changes equation. By processing locally sourced iron ore into finished steel products here in Rwanda, this plant helps us move up the value chain and capture more of the value our own economic development creates.” Nsengiyumva said.
The Government’s Challenge
Prime Minister Justin Nsengiyumva, officially inaugurated the plant in Kimonyi Sector.
Nsengiyumva said Rwanda’s industrialization drive must now focus on making sure factories operate at full capacity and deliver the economic returns expected from them.
“Building industrial plants is only the first step. Rwanda has seen industrial facilities operate below their designed capacity, resulting in lost production, jobs and economic value. We hold A1 Iron and Steel to a higher standard,” he said.
The government expects the company to achieve high utilization, improve productivity, employ and train Rwandans, transfer technology and build relationships with local suppliers. It also expects the factory to compete beyond the domestic market.
The government will support the investment through infrastructure, energy, skills and regulatory measures, Nsengiyumva said, while expecting A1 to create jobs and contribute to the development of Musanze and the wider economy.
A Factory Built Around Steel
A1 Iron & Steel Managing Director Himanshu Tiwari, said the factory is intended to not only replace imported products but also become part of the industrial base supporting Rwanda’s next phase of economic growth.
“We believe that steel is not just another manufacturing product, it is the backbone of industrial development. We also want the plant to help address Rwanda’s demand of specialized industrial skills,” Tiwari said.
The company has established an integrated steel manufacturing facility designed to transform iron-bearing raw material through the direct reduced iron route into steel, followed by steel melting, billet casting and the production of downstream products.
Steel is required for roads, bridges, buildings, factories, power and water infrastructure, agriculture and housing. As Rwanda continues to invest in these areas, domestic steel production will help reduce reliance on imported materials while strengthening the local industrial supply chain.
A1 expects the project to create approximately 1,000 direct jobs, in addition to indirect employment in mining, transportation, logistics, maintenance, services and other supporting businesses.
The objective, he said, is to train young Rwandans to operate sophisticated equipment, manage modern production systems and work with advanced automation. That will become one of the longer-term benefits of the investment.
Rwanda’s industrial expansion is creating demand for technical skills that were previously limited in the country, and factories such as A1 are becoming training grounds for a new generation of industrial workers.
From Made in Rwanda to Made for Africa
Tiwari said the company wants to progressively manufacture products that Rwanda currently imports and eventually expand into neighboring markets.
“Our vision is therefore not limited to ‘Made in Rwanda. We aspire to build a strong regional brand ‘Made in Rwanda, for Africa’” he said.
That would give the Musanze plant a role in Rwanda’s wider push to increase manufacturing and exports rather than relying primarily on imported industrial products.
Maurice Mugabowagahunde, the Northern Province Governor sees the factory as an opportunity for the local economy, particularly through employment, skills development, technology transfer and business opportunities for small and medium enterprises.
“The Northern Province has a deep history of iron production. Today, we are pleased to see that this old technology is being revived and used for mass production. Some traditional iron-working products included amasuka y’amaberuka, and a museum in Rulindo preserves part of that history,” he said.
The new factory represents a very different scale of production, but the connection is notably true that iron which was once worked through traditional methods is now being processed through a modern industrial facility designed to supply a growing economy.
The country has a growing market for steel and it now has a major domestic producer. The task is now to ensure that the investment is fully utilized to produce the jobs, skills, value addition and regional competitiveness that Rwanda deserves.
