The Rwandan government is set to establish a garment factory in the capital Kigali which it plans to undertake by starting a joint venture with Chinese investors, according to a government official quoted by the Global Times.
Minister of Trade and Industry Francois Kanimba made the announcement as he spoke to tailors in Kigali, telling them that the Kigali garment factory, worth $1.3 million, is expected to open by the end of 2016.
According to Rwandan officials, the investment would include procuring 670 machines to produce different types of clothes.
The plan is part of Rwanda's efforts to develop its own textile industry, cut imports of garments and create jobs through the factory.
Last year, Rwanda reportedly spent more than $100 million on imported clothes, both new and second-hand. The East African nation is said to spend more than $15 million importing second-hand clothes every year.
Kanimba said that the government is planning to reduce its dependence on imported clothing, so it's seeking funds and skills from Chinese investors for the industry.
"Recent study shows that among the economic platforms, tailoring tops opportunities for increasing more locally made products," Kanimba said, adding that some imported "knitted clothes such as uniforms" can be made by locals.
The Chinese investors had also offered to train local tailors, the minister said.
There are two textile companies in Kigali. One of them is the Chinese-run C&H Garments whose products are exported. C&H Garments has invested in computerized sewing machines and will train up to 400 local workers.
Last year, Rwanda and C&H signed a deal, allowing the Chinese company to set up a garments manufacturing plant worth $10 million (about Rwf 7 billion) at the Kigali Special Economic Zone.
The report said that the factory will employ more than 1,000 Rwandan staff and over 30,000 locals within five years.
Clare Akamanzi, Chief Operating Officer at Rwanda Development Board, said that the investment is expected to boost the local manufacturing sector and help diversify the country's export base.