Government says it plans to expand, by more than double, the size of Kigali Special Economic Zone in a move aimed at further addressing some of the domestic private sector constraints including the availability of industrial and commercial land, limited transport linkages as well as availability and the cost of energy.
The Kigali Special Economic Zone, a merger of the former Kigali Free Trade and Kigali Industrial Park has two phases, covering 385 hectares of land and the plan, according to Rwanda Development Board (RDB), is to increase its combined size to 400 hectares.
Currently, the first phase covers 159 hectares, and 226 hectares in the second phase.
“When you look at both phases, the first phase is fully occupied and the second phase exceeds 70 percent,” said Diane Sayinzoga, the head of special economic zone and export facilitation at Rwanda Development Board (RDB).
With about 150 companies operating in Kigali Special Economic Zone, Sayinzoga said that both zones have key infrastructures including power, water and sanitation, ICT infrastructure like fiber optic plus wireless networks, onsite and offsite roads links to airports and main roads, as well as firefighting network and sewage network.
“The Kigali Special Economic Zone has attracted private sector investments estimated at $2.3 billion, created over 13,000 permanent jobs and generated over $1 billion of export revenues since 2018.”
She added, “…and generated around Rwf120 billion in taxes between 2018 and 2021.”
Reacting on the need to expand the zones, she pointed out that successful (SEZs) contribute significantly to the development goals of the country while at the same time utilizing public resources in the most effective way to generate a tangible economic impact.
This she said includes increased foreign and domestic private sector investment, export growth, industrial development as well as import substitution.
“Expansion of the zone is planned for the third and fourth phase around 400ha,” she said.
The zone, she added, accommodates different investments including heavy and light manufacturing industries, large scale users industrial plans, commercial wholesalers, chemical, pharmacy and plastics, warehousing, tourism and service delivery, as well as ICT and logistics.
She also touched on the recently unveiled $300 worth Kigali Innovation City, a growing tech hub expected to be located at the zones.