Prime Minister Justin Nsengiyumva has officially inaugurated a factory that will manufacture steel products, mainly those used in construction.
The factory, known as A1 Iron & Steel Rwanda Ltd, was officially opened on September 11. It is located in the Musanze Industrial Park in Kimonyi Sector.
The factory was built by Indian investors at a cost of $20 million, approximately Rwf29 billion, and is expected to consume 40 megawatts of electricity per day.
Factory to Process Minerals from Rwanda
Rather than melting scrap metal to produce new steel, the factory will process minerals sourced from Rwanda, particularly those extracted from mines in Rulindo District.
After the minerals are smelted, they are transformed into steel, which is then used to manufacture various products. The factory is expected to produce more than 10 types of steel products, including nails, steel wires, steel pipes, reinforcement bars and other products mainly used in construction.
Rwanda Seeks to Reduce Steel Imports
Speaking at the official inauguration ceremony, Prime Minister Nsengiyumva said the factory would increase the volume of products manufactured locally while adding value to existing resources.
He said: “A1 Iron & Steel Ltd will enable Rwanda to reduce its reliance on imports, given that the country currently imports steel products worth $100 million.”
He added that the factory would position Rwanda among the leading exporters of steel products, particularly within the region.
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Factory Creates Jobs for Rwandans
He said.:We believe this factory will make a significant contribution to job creation and the development of Rwandans’ industrial skills. It is also a sign that our country’s leadership is stable and has a clear vision for sustainable development.”
The Governor of the Northern Province, Maurice Mugabowagahunde, said the factory demonstrates investors’ confidence in Rwanda and will contribute to the development of the province, particularly in infrastructure and industrial development.
The factory currently employs about 500 people, the majority of whom are Rwandans, and the number is expected to increase to 1,000.
It is also expected to create employment for an additional 2,500 people engaged in other activities outside the factory but linked to its operations.
Northern Province Has Raw Materials
Governor Mugabowagahunde assured the investors behind the factory that the raw materials required for its operations are available in abundance in the Northern Province. He said this would ensure that the factory is not forced to halt operations due to a shortage of materials to process.
Factory Targets Domestic and Regional Markets
The Managing Director of A1 Iron & Steel Ltd, Himanshu Tiwari, said the completion of the factory represents an important milestone and opens a new chapter in Rwanda’s industrial development journey.
He said: “At this factory, we will focus on using raw materials available in Rwanda and transforming them into essential construction materials. This will enable us to meet domestic market demand while also exporting our products, thereby generating significant revenue for Rwanda.”
Tiwari thanked the Rwandan Government for its clear vision to develop the industrial sector and for the support and facilitation it provides to investors seeking to invest in Rwanda.
