The Rwanda Development Board and China’s Pink Mango C&D have signed an agreement to establish a garment factory aimed at discouraging the importation of second-hand clothes into the country.
The collaboration is expected to provide 7,500 jobs to Rwandans and cumulative export earnings of $20million over the next five years.
The factory, which will be located in the capital Kigali’s Special Economic zone, will produce garments for both the domestic and export market, the RDB confirmed.
“The investment of Pink Mango C&D will not only enable us to increase our exports but also reduce imports of clothing. We have been using fiscal measures to progressively discourage the importation of second-hand clothes because it was hurting the growth of the domestic textile and garment industry.
Therefore, we are attaining a double objective by signing this deal.” RDB Deputy Chief Executive Officer and Chief Operating Officer Emmanuel Hategeka explained after the signing.
Gordon Gu, the Director of Pink Mango C&D Garments noted: We are glad this business makes economic sense for the country and we will ensure that Rwandans work in good conditions.”