Burera Garment Factory, a joint project of Burera district and Japanese venture capital firm Noguchi Holdings, will soon start operations in Rwanda’s Northern Province district.
The factory, which has trained over 100 workers, will offer direct jobs to over 600 people apart from generating employment for hundreds along the downward value chain.
The factory is part of Integrated Craft Production Centres (ICPC), locally known as ‘Udukiriro’. Noguchi has a majority shareholding of 52 per cent, according to a leading English-language daily in the country.
Over 280 modern machines and a computerised cutting machine will be used to make over 480,000 clothes per month. The factory, which has signed a contract with a Hong Kong-based firm to export over 200,000 pieces of apparels per year, plans full production capacity to resume by January next year.
The development comes at a time when Rwanda moves to enforce a ban on used clothes that it holds partly responsible for the current trade deficit. It will also strengthen the government initiative to create 200,000 off farm jobs annually by 2018,
If the textile sector operates at its full capacity, experts say the total foreign exchange savings induced by the domestic market recapturing strategy could reach almost $450 million annually.