Industrialists that were attending a two-day conference on Industrial Policy in Kigali, co-organized by Ministry of Trade and Industry, International Growth Centre (IGC) and the World Bank observed that operating below their installed capacities affects optimization and profitability of their business entities.
According to a survey conducted in 2011, most industries in the country utilise only up to 50 percent of installed capacities which affects the prices of their products.
Industrialists also cited transport hurdles and low capitalization as some of the challenges dogging their performance.
Brian Ngarambe the proprietor of Bonus Industries dealing in manufacturing alternative packaging materials called for the public to change the mindsets and believe in products made in Rwanda.
“We get raw materials from far. We need big capital. Sometimes, the problem of capital and low skills also comes in. There is still a mentality where people think that industries are established by foreign investors,” he explained.
Private Sector Federation (PSF) Director, Steven Ruzibiza suggested that industries should be subsidized to minimize cost of production.
Minister of Trade and Industry, Vincent Munyeshyaka assured industrialists that challenges identified during the 2011 survey will be addressed in the new industrial policy.
He said that despite efforts to increase technical schools there is still a need to step up efforts especially in developing industrial skills and gain from knowledge transfer from expatriates.
Rwanda is targeting the industrial sector to contribute 21.8% of Gross Domestic Product by 2024.
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