The completion of construction works for 9 first light industries in Kigali Special Economic Zone is expected by March 2013- Hon. Minister Kanimba

Kigali- The Minister of Trade and Industry led Saturday, 31st March, 2012, the ground breaking ceremony for the construction of nine first light industries in Kigali Special Economic Zone, to be occupied by nine selected industrialists from Gikondo Industrial park.

In his remarks , the Minister Kanimba stressed that the need for sustainable industrialization and urban environment management, as highlighted in the country`s vision 2020, prompted the Government of Rwanda to review the industrial set up with a view to relocate the industries out of wetlands, the Gikondo Industrial park among others. According to the Minister of Trade and Industry, the first phase of the Gikondo relocation is meant to accommodate 14 factories:5 heavy factories and 9 light industries.

“Today we witness the ground breaking for the first 9 light industries to be constructed in Kigali Special Economic Zone (KSEZ) by Beijing Construction Engineering group and We expect their construction works to be completed by March 2013. Otherwise, construction works of the lot of large 5 factories will be commenced during the financial year 2012/2013”, Hon. Minister Kanimba said, adding that the second phase of the construction works will cover warehouses and garages in the 2013-2014 financial year.

Hon. Minister Kanimba François as he inaugurates the construction works for 9 first light industries in Kigali Special Economic Zone

Considering status, conditions and facilities of a Special Economic Zone and even the available land in Kigali Special Economic Zone, the Government considers that It is not possible to relocate the whole 104 occupants in Gikondo Industrial Park to Kigali Special Economic Zone.

“The Cabinet meeting held on 18 November 2011 approved the option regarding the relocation of selected Gikondo industrial park occupants to KSEZ and expropriating the remaining occupants. Among other criteria set aside to identify the occupants to be relocated or expropriated, the level of turn-over , the percentage of value addition which must not be under 35% and the number of permanent employees not under 30”, the Minister Kanimba François revealed

According to the partnership agreement with Rwanda Special Economic Zones Co.ltd, the constructed units will be jointly owned by both MINICOM and Rwanda Special Economic Zones Co.ltd proportionately to the contribution made. The Ministry of Trade and Industry will progressively refund Rwanda Special Economic Zones Co.ltd for the cost of the land to acquire full rights to the constructed units and be in position to transfer the units to the Owners from Gikondo industrial Park.

The relocation of Gikondo industrial park is expected to be accomplished by end 2016 and studies revealed that the Government might spend about 33 billion Rwf for only the whole construction works. In the meantime the industrialists are expected to cover themselves the cost of moving heavy equipment and the cost of their installation.