Inside Rwanda’s leather industry transformation: Tannery park sparks investor interest

By Elias Hakizimana.

Rwanda’s leather industry is poised for a significant transformation with the government’s announcement to establish a tannery park in the Bugesera Special Economic Zone.

This ambitious plan, revealed during the 17th Africa Leather Value Chain Annual Forum held from December 10 to 12 in Kigali, aims to reduce dependency on costly imported finished hides and skins while positioning the country as a regional leader in leather production.

A Game-Changing Initiative The proposed tannery park will feature an integrated leather processing plant with effluent treatment facilities, requiring an estimated $15.1 million in initial investment.

Jean d’Amour Kamayirese, a representative of the Kigali Leather Cluster, described the initiative as a magnet for investors, citing a cluster member who is setting up a shoe factory in the Kigali Special Economic Zone with a capacity to produce 900,000 pairs of shoes monthly.

“The government helped us form a cluster that unites hides and skins dealers, abattoir owners, and leather product makers. With the promise of a tannery park, some members are preparing to set up large factories to source finished hides and skins locally,” Kamayirese noted, adding that over 100 tonnes of hides and skins are currently rotting due to market gaps.

Paving the Way with Feasibility Studies, Alexis Kabayiza, Chief Technical Advisor at the Ministry of Trade and Industry, confirmed that a feasibility study for the tannery park is underway and is expected to be completed within three months.

“The study will guide investors with details on capital requirements and designs, encouraging local production of shoes, belts, and other leather products,” he said.

Regional Insights on Leather Development Nicholas Mudungwe, Executive Director of the Africa Leather and Leather Products Institute, highlighted the importance of sustainable tannery parks.

“We need a green leather industry that is environmentally friendly. Centralized effluent plants can reduce production costs. Development banks must also finance the industry while supporting innovative product designs,” he said.

Mudungwe also called on governments to prioritize locally made leather products in public procurement, especially for institutions like the military, police, and schools. He urged SMEs to collaborate to meet bulk orders and adhere to market standards, leveraging opportunities presented by the African Continental Free Trade Area (AfCFTA).

Creating Jobs and Retaining Value in Africa Marie-Jeanne Umuhorakeye, an officer at the Kigali Leather Cluster, highlighted the employment opportunities that the leather value chain development could bring for youth, women, and fresh graduates.

“With increasing meat production, we have abundant raw materials from cow, goat, and sheep skins. Processing them locally will attract investors and enhance technology transfer to improve product quality,” she said.

Investors like Bede Bedetse stressed the importance of retaining raw hides and skins within Africa. “Tannery parks can help develop Africa’s leather sector by supplying materials to factories and reducing dependency on exports of unprocessed hides,” he said.

Similarly, Edward Malunga, President of the Leather Industry Association of Malawi, emphasized raising product standards to make African SMEs competitive in continental markets.

“Government and financial institutions must help SMEs access working capital to scale production for AfCFTA,” he added.

Towards a leather revolution in Rwanda

As the feasibility study progresses, Rwanda’s commitment to establishing a tannery park is setting the stage for a leather industry revolution. By integrating value chains, supporting SMEs, and prioritizing local processing, the country is positioning itself as a regional hub for quality leather products, fostering economic growth and sustainable development.