The Rwanda Development Board (RDB) on Friday signed an agreement with a Chinese firm to establish a modern garment factory in Kigali Special Economic zone that will produce garments for both the domestic and export market.
Under the agreement, Pink Mango C&D is expected to provide 7,500 jobs to Rwandans by the fifth year and cumulative export earnings of US$ 20 million (about Rwf17.8 billion) over the next five years, according to a statement issued to the media by RDB.
Pink Mango C&D is also expected to build capacity and skills transfer to 500 workers of local garment cooperatives who will also benefit from some of their supply contracts through an outsourcing model.
It joins C&H Garments Ltd, a Chinese textile firm established in 2015 in the Kigali Special Economic Zone.
Speaking after the signing, RDB Deputy Chief Executive Officer and Chief Operating Officer Emmanuel Hategeka said the investment of Pink Mango C&D will upskill Rwandans, giving them access to productive jobs and hence ensuring a better standard of living.
“Secondly the investment will not only enable us to increase our exports but also reduce imports of clothing. We have been using fiscal measures to progressively discourage the importation of second-hand clothes because it was hurting the growth of the domestic textile and garment industry. Therefore, we are attaining a double objective by signing this deal,” he said in the statement.
The government has laid down various strategies to enhance the quality and quantity of local products in the next three years.
Among the strategies being considered are tax waiver on some packaging materials and sourcing raw materials from the region, in part to lower the cost of production for local companies and increase local consumption, according to the Ministry of Trade and Industry.