Find Industry and Manufacturing expertise in Rwanda
In 2012, Rwanda’s GDP per capita stood at USD$644, a noticeable increase from $593 in 2011. The service sector is the largest contributor to Rwanda’s GDP, contributing 45% in 2012; the industrial sector plays a much smaller role, and contributed just 7% of GDP for the same year (Government of the Republic of Rwanda, 2013). Manufacturing makes up the bulk of revenue from the industrial sector, contributing 6% to GDP in 2012, a decrease of 1% from the previous year (World Bank, 2013). According to a study by the Rwanda Development Board the Rwanda’s manufacturing sector has approximately 27,769 employees (2012). The total labour force in Rwanda stood at 5.2 million in 2010 (World Bank, 2012).
The primary industrial activities involve mainly the processing of coffee, tea, bananas, beans, sorghum, potatoes and other agricultural commodities. Other smaller scale industrial products include cement, small-scale beverages, soap, furniture, shoes, plastic goods, textiles and cigarettes. The majority of goods manufactured in Rwanda are produced for domestic consumption; in order to limit the country’s reliance on imports. The vast majority of manufacturing companies in Rwanda are located in the capital city, Kigali.
Sulfo Rwanda Industries is the second largest manufacturing company in Rwanda, located in Kigali. Sulfo Rwanda produces a wide range of consumer goods for the domestic market, these include: soap, lotions, skin lightening products, washing detergents and sweets.
Rwanda is a large exporter of metal ores, comprised of mainly tin ores; ore exportation makes up 43% of the country’s total yearly exports. The country also exports a large amount of unroasted coffee beans, which make up over 25% of total yearly exports. Rwanda’s major export partners include Switzerland 16%, China 14%, Hong Kong 7% and the US 7% (Observatory of Economic Complexity, 2010).
Rwanda’s development aims are outlined in Vision 2020; objectives include targeting growth and development, which focus on economy-wide improvements in productivity. The overall goal is to have transformed Rwanda’s economy by 2020, moving away from subsistence agriculture towards increased manufacturing, services and commercial agriculture.
The 2012-2013 World Economic Forum Global Competitiveness Report rates Rwanda as 70 out of 144 countries based on production process sophistication, scoring 3.6 out of 7, where 7 is the most sophisticated. This is a fairly high score for the region, with neighbouring Burundi having a much lower ranking of 143 and scoring 2.2(WEF, 2013).
In 2013 the Rwanda Association of Manufacturers (RAM) was reformed, having been dissolved several years previously. The umbrella company, which serves to represent the interest of Rwandan manufacturers, was reformed with the hope of facing existing issues in the manufacturing sector, including bringing down the costs of production.
|Industry and Manufacturing organisations in Rwanda|
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