Frw 5.9 billion set aside to compensate residents in Muhanga Industrial Park zone

While addressing the Chamber of Deputies, Trade and Industry Minister Sebahizi Prudence revealed that the government is prioritising the development of both Muhanga and Musanze Industrial Parks in the upcoming fiscal year.

He noted that the Muhanga project alone will require over Frw 16 billion, although the 2025/2026 national budget has so far earmarked Frw 3.2 billion, as it is a multi-year project.

Out of the current allocation, Frw 5.9 billion is designated specifically for compensating property owners within the Muhanga Industrial Park zone.

Minister Sebahizi said that in the 2025/2026 fiscal year, more than Frw 2.2 billion will go towards resident compensation, while Frw 1 billion has been allocated for road construction and other essential infrastructure. However, the full cost of road construction in the area is projected to exceed Frw 10.5 billion.

Sebahizi stressed that the industrial parks initiative is aligned with Rwanda’s ambition to expand its manufacturing base and increase the output of locally produced goods.

The Musanze Industrial Park will also continue to receive attention, with infrastructure development—including roads—expected to cost Frw 7.8 billion. However, only Frw 2 billion is planned for use during the 2025/2026 budget year. Completion of the entire project is anticipated by 2029.

The Ministry confirmed that some residents still occupy land designated for the Muhanga Industrial Park. To date, 157 households have been relocated from 19.4 hectares, with additional families expected to be moved no later than the end of fiscal year 2025/2026.

Between 2022 and 2024, the government disbursed over Frw 2.7 billion in compensation to those already relocated from the Muhanga site.

Once completed, the Muhanga Industrial Park is expected to become one of Rwanda’s most significant industrial zones outside of Kigali.

The industrial park already hosts several manufacturing facilities, including Cheetah Cement, a Chinese-owned plant operated by Anjia Prefabricated Construction Rwanda Company Ltd, along with factories producing cookware, tiles, and hygiene products.

The government has earmarked Frw 5.9 billion to compensate property owners within the Muhanga Industrial Park zone.

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