The federal government could signal an settlement in July with a brand new investor to take over the Kigali-based silk manufacturing facility and revive Rwanda's dormant sericulture trade.
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This was stated by Sandrine Urujeni, Chief Operations Officer on the Nationwide Agricultural Export Improvement Board (NAEB), who appeared earlier than the Public Accounts Committee (PAC) to elucidate points affecting the silk trade on June 30.
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Sericulture is the rearing of silkworms to supply uncooked silk for the textile trade. It includes cultivating mulberry timber, whose leaves are fed to silkworms that spin silk cocoons. The cocoons are then processed into silk fibre used to fabricate materials and clothes.
Based on Urujeni, the brand new investor is anticipated to take over Kigali Silk Manufacturing facility and associated property, which have remained unused since 2020 following the exit of HEworks Rwanda, a subsidiary of Korean firm HEworks.
“The property embody sericulture centres, a silk processing manufacturing facility, and tools beforehand used to supply silk,” she stated.
She defined that the matter is now being dealt with by the Ministry of Finance and Financial Planning (MINECOFIN) by way of the division accountable for privatisation.
“We’re working intently with MINECOFIN and the Rwanda Improvement Board (RDB) to safe an investor who will revive the sericulture sector. We’re within the remaining phases of negotiations with a potential investor, who’s at the moment assessing the property earlier than taking them over,” she stated.
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“We had hoped to have signed the settlement by now, however discussions first targeted on how the property, together with the land, mulberry timber and the manufacturing facility, shall be managed. The investor has additionally requested extra land to develop mulberry plantation, in addition to authorities assist by way of agricultural extension companies. We’re optimistic that the settlement shall be signed in July,” she added.
Standing of the manufacturing facility
The silk manufacturing facility primarily based in Kigali Particular Financial Zone has the capability to course of between 70-100 tonnes of silk cocoons yearly. Hy October 2021, NAEB officers stated at the least $1.3 million had been invested within the silk manufacturing facility.
The manufacturing facility at the moment operates tools used to course of uncooked cocoons, whereas machines required to transform the cocoons into silk thread stay idle due to restricted technical experience.
Sericulture was launched in Rwanda in 2003 beneath the Ministry of Agriculture and Animal Sources with assist from the Worldwide Fund for Agricultural Improvement (IFAD).
HEWorks Rwanda operated the silk manufacturing facility since 2016. It ceased operations in 2021. Since then, NAEB has managed the sector and applied interim measures to maintain farmers' participation.
Based on NAEB, the sericulture trade has vital financial potential, with the capability to generate international alternate earnings, scale back the commerce deficit, and create employment, significantly for girls and younger individuals.
NAEB operates six cocoon manufacturing centres situated in Gatsibo, Gasabo, Gakenke, Nyanza, Karongi and Rusizi.
