ourclub

you trust

Uncategorized

Senators Warn Industrial Growth Could Slow After Budget Reduction

Members of Senate of Rwanda have warned that cuts in funding for industrial infrastructure could negatively affect Rwanda’s manufacturing sector and long-term economic goals.

During a Senate session held on May 14, 2026, lawmakers reviewed the government’s draft budget for the 2026/2027 financial year and expressed concern over reduced allocations to industrial zones.

The Senate Committee on Economy and Finance revealed that funding for infrastructure development in industrial parks decreased from Frw8.9 billion in the revised 2025/2026 budget to Frw7.178 billion in the upcoming fiscal year.

Senators said many industrial parks across the country still face major infrastructure gaps, including poor roads, unreliable electricity, inadequate water supply, and insufficient waste treatment systems.

Some factories operating in these areas reportedly continue to experience power outages that disrupt operations and threaten expensive equipment.

Lawmakers cautioned that unless investment in industrial infrastructure increases, Rwanda may struggle to achieve its target of growing industrial output by 10.6% annually under the NST2 program.

They stressed that stronger industrial production is key to increasing exports, reducing dependency on imports, and improving the country’s foreign currency reserves.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *