The federal government could signal an settlement in July with a brand new investor to take over the Kigali-based silk manufacturing facility and revive Rwanda's dormant sericulture trade.
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This was mentioned by Sandrine Urujeni, Chief Operations Officer on the Nationwide Agricultural Export Improvement Board (NAEB), who appeared earlier than the Public Accounts Committee (PAC) to elucidate points affecting the silk trade on June 30.
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Sericulture is the rearing of silkworms to provide uncooked silk for the textile trade. It entails cultivating mulberry bushes, whose leaves are fed to silkworms that spin silk cocoons. The cocoons are then processed into silk fibre used to fabricate materials and clothes.
In keeping with Urujeni, the brand new investor is anticipated to take over Kigali Silk Manufacturing facility and associated belongings, which have remained unused since 2020 following the exit of HEworks Rwanda, a subsidiary of Korean firm HEworks.
“The belongings embrace sericulture centres, a silk processing manufacturing facility, and tools beforehand used to provide silk,” she mentioned.
She defined that the matter is now being dealt with by the Ministry of Finance and Financial Planning (MINECOFIN) by means of the division accountable for privatisation.
“We’re working intently with MINECOFIN and the Rwanda Improvement Board (RDB) to safe an investor who will revive the sericulture sector. We’re within the last levels of negotiations with a potential investor, who’s at the moment assessing the belongings earlier than taking them over,” she mentioned.
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“We had hoped to have signed the settlement by now, however discussions first targeted on how the belongings, together with the land, mulberry bushes and the manufacturing facility, might be managed. The investor has additionally requested extra land to broaden mulberry plantation, in addition to authorities assist by means of agricultural extension companies. We’re optimistic that the settlement might be signed in July,” she added.
Standing of the manufacturing facility
The silk manufacturing facility based mostly in Kigali Particular Financial Zone has the capability to course of between 70-100 tonnes of silk cocoons yearly. Hy October 2021, NAEB officers mentioned at the least $1.3 million had been invested within the silk manufacturing facility.
The manufacturing facility at the moment operates tools used to course of uncooked cocoons, whereas machines required to transform the cocoons into silk thread stay idle due to restricted technical experience.
Sericulture was launched in Rwanda in 2003 beneath the Ministry of Agriculture and Animal Assets with assist from the Worldwide Fund for Agricultural Improvement (IFAD).
HEWorks Rwanda operated the silk manufacturing facility since 2016. It ceased operations in 2021. Since then, NAEB has managed the sector and carried out interim measures to maintain farmers' participation.
In keeping with NAEB, the sericulture trade has vital financial potential, with the capability to generate international alternate earnings, cut back the commerce deficit, and create employment, notably for ladies and younger folks.
NAEB operates six cocoon manufacturing centres situated in Gatsibo, Gasabo, Gakenke, Nyanza, Karongi and Rusizi.
