A Chinese company is set to construct a textile factory in Rwanda through a memorandum of understanding with Rwanda Development Board (RDB). The investment and business company mainly focuses in production of high and middle-end women’s shoes. The company also has three production bases, including one in Ethiopia.
“Zhang Huarong has not only set up in Ethiopia but also produces shoes of worth over $30 million. His increasing success has shown him that Africa is a place where he can make high quality exports for products consumed by markets like in the US,” said Clare Akamanzi, the RDB chief executive.
In addition, he found out that Rwanda is one of the most attractive places to do business. This is why he is setting up his next factory in the country serving as a centre for East Africa.
The company plans to invest over US$ 1bn for the next 10 years and create over 20,000 jobs. Furthermore, the factory will hopefully produce shoes, clothes, bags as well as electronic equipment.
According to RDB officials, land has already been made available by the government at the Kigali Special Economic Zone. The factory will contribute to export diversification, which is in tone with the country’s vision.
“We are confident that Zhang’s commitment to invest in Rwanda will diversify and improve exports of finished products,” Akamanzi said. The company anticipates that the manufacturing plant will be up and running in April next year.