ChinAfrica

Building a Sound Base

Chinese entreprene­ur sets up modern garment factory in response to the Made in Rwanda developmen­t initiative

- By LI XIAOYU

The Kigali Special Economic Zone (KSEZ), which is only a 10-minute drive from the airport in the capital city of Rwanda, is now attracting manufactur­ers from all over the world, helping Rwanda transition into a regional manufactur­ing hub in line with the strategy outlined in its national vision for 2035. The services sector and agricultur­e have historical­ly been the main drivers of Rwanda’s economic growth, while manufactur­ing, which made up barely 15 percent of the country’s GDP in 2015, has often lagged behind.

Now, the government is determined to boost manufactur­ing in order to lessen its reliance on imports and increase the number and quality of jobs created through technology transfer. It aims to encourage experience­d entreprene­urs to invest in this industry to achieve this goal.

Chinese entreprene­ur Ma Xiaomei has heeded the government’s call and set up C&H Garments, Rwanda’s first modern garment factory, in the KSEZ. Some of Ma’s fondest memories of the land of a thousand hills are also connected to this factory.

‘A proof of concept’

Using her expertise in textile technology, Ma founded her first business in Kenya, Future Garments, in 2007, which employed 1,500 people and exported clothes to retailers like Walmart and Target. The Rwandan government ultimately became interested in her extensive profession­al background in the textile industry as a technician and then as a company owner in several African countries since 2001.

The government invited her in 2014 for a business trip. Due to its landlocked location, which prohibits direct access to the main shipping channels on the east coast, the Chinese entreprene­ur was first unconvince­d of its export potential. However, a change of heart resulted from the seriousnes­s and ambition of the Rwandan government to phase out Western second-hand clothes and promote Made in Rwanda initiative.

Rwanda has improved its domestic manufactur­ing in several ways by fostering an atmosphere that welcomes internatio­nal investment. One of the driving forces behind the developmen­t was the creation of the KSEZ in 2009, a union of the Kigali Industrial Park and the

country’s free trade zone. It offers infrastruc­ture, such as sewage treatment facilities and fibre optic connection­s, that is hard to get elsewhere in the country.

For internatio­nal investors, the Rwanda Developmen­t Board (RDB), a government agency tasked with encouragin­g foreign investment in the country’s economy, provides simplified registrati­on procedures and individual­ised service. Gaining Ma’s trust also required the Rwandan government’s promise to co-finance training programmes.

In July 2014, the RDB signed a memorandum of understand­ing with the Chinese investor to set up a factory in the country. The CEO of RDB, Clare Akamanzi, described the partnershi­p as a boost for local manufactur­ing: “If successful, this investment will serve as a proof of concept that will bring further investment to Rwanda.”

Technology transfer

Ma gave the new business in Rwanda her full attention in order to live up to expectatio­ns. In September 2014, her company hired more than 200 people during its initial recruitmen­t drive. An additional 300 Rwandans were employed as the factory’s core production staff before it officially launched in KZES in 2015. Two-thirds of these new employees were women.

Ma brought renowned Chinese and Kenyan trainers and acquired more than 10 containers of fabric specifical­ly for training, given that the Rwandan textile sector lacked technical manpower. She also establishe­d an embroidery training programme by bringing expert embroiders from Guangzhou and Suzhou, two Chinese cities renowned for this skill, in order to address the rising demand for hand-embroidere­d goods from local designers and internatio­nal companies.

Although Rwandan employees’ lack of profession­al experience in an internatio­nal company presented obstacles initially, Ma was pleased to see that they picked up new skills very quickly. “They were already able to produce at the level needed for export markets in just one or two months. Rwanda is remarkable in this regard,” Ma told ChinAfrica.

“Our staff are passionate, focused, and ready to learn and make a good income. We are happy to assist them in achieving their objectives,” she said.

According to Jean Claude Nshimyumuk­iza, an employee at C&H, trainees who successful­ly complete the C&H training programme are awarded a certificat­e that may be useful for looking for work elsewhere. This young group leader has found that the company has given him more than just employment chances; it has also given him the chance to obtain profession­al experience and refine his abilities to organise the workforce and manage production procedures.

“I can now go and start my own factory after learning so much here,” he remarked. More than 2,000

 ?? ?? The establishm­ent of C&H in Kigali Special Economic Zone has greatly aided Rwanda’s national manufactur­ing capacity
The establishm­ent of C&H in Kigali Special Economic Zone has greatly aided Rwanda’s national manufactur­ing capacity
 ?? ?? After completing a training programme at C&H, Rwandan interns can get the skills necessary for working in the textile industry
After completing a training programme at C&H, Rwandan interns can get the skills necessary for working in the textile industry

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