This was announced by the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana while reading the 2018/2019 National Budget to both chambers of parliament.
Ndagijimana said that all raw materials to use in local industries will pay 0% import duties down from 10% and 25%.
Speaking in a press conference after reading the budget, Ndagijimana said that the government is providing incentives to business people.
“The production of textile is private business, what we do is to provide incentives like providing space in the Special Economic Zones and make the investment cheaper and profitable,” he said.
He said that after the government of Rwanda raised taxes on imported second hand clothes, the move has created domestic demand for Made in Rwanda clothes, and the government is negotiating with producers and new investors to increase production as the market is available.
“What we have to keep in mind is the volume and price because if they are expensive, people may not be able to buy. So, we are focusing on new affordable clothes as well as the volume,” he said.
Meanwhile, Rwanda’s 2018/2019 budget is Rwf2,443.5 billion, which is Rwf328.2 billion higher compared to Rwf2,115.3 billion in the 2017/18 budget.
Among priority areas, Ndagijimana said that they expect to construct sustainable economy through fast-trucking the development, promoting private sector, knowledge based economy and industrial development where the government has allocated a total of Rwf1389.5 billion, covering 57% of the whole budget.
Government targets to create a total of 216, 217 new jobs, a process which will take Rwf46.7 billion.
On social welfare, the government allocated a total of Rwf668.2 billion, 27% of the budget. The government has allocated a total of Rwf401.5 billion, 16% of the to good governance sector.
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