One of the resolutions of the cabinet meeting held on Monday, December 14, 2020, was to support the Rwandan industry to be more productive.
The Agricultural processing, sanitation and construction materials Industries, are the ones which will be supported from January 2021. In order to satisfy some of the country’s domestic or value-added products, as explained by the Hon. Minister of Industry and Trade in Rwanda, Soraya HAKUZIYAREMYE, where she has said that:
“But we would also encourage start-ups to exempt VAT on construction materials that may not be imported from the country, and to exempt them from import duties, when they are unable to get what they are building for those industries , when construction materials are not imported from the COMESA member states, or from the EAC member states..
Even to help them with the fact that we can get rid of VAT when they remove construction materials made from the country. So it’s a program that will start in January 2021. ”
There is already a plan to exempt the industry from taxes on basic materials, as well as machinery, but this plan will cover industries that want to start with existing ones that want to expand operations both in agriculture and in the construction sector.
On the other hand, industrialists point out that there are many problems that hinder their development.
Nonetheless, the Executive Secretary of the Rwanda Industrialists’ Association, KWIZERA Alphonse finds that setting up an advocacy for industrialists will further increase their productivity as most of them will be affected by the effects of COVID-19. Where he says:
“That cabinet decision is a good decision for the industry because it is mostly the industry that plays an important role in the country’s economy.”
With this industry advocacy program, economic analysts find it to be one of the ways to develop some of the country’s domestic products but not just for foreigners.
The industry accounts for 17% of GDP, with a target of 20% by 2020, with exports expected to reach 17% per annum, according to the report. contained in the National Strategy for Transformation (NST1).