Top 7 Garment Manufacturing Companies in Rwanda

Whether you are looking for a business that can help you make your own clothes or you are interested in purchasing garments for yourself, you may find this list of top clothing manufacturing companies in Rwanda helpful.

Kigali Garment Centre

Located in the industrial area of Kigali, the Kigali Garment Centre is one of the leading garment manufacturing companies in Rwanda. It is part of the government’s plan to boost the country’s clothing industry. Its 130 employees include teens and twenty-somethings.

Rwanda’s garment industry relies on imported raw materials, including polyester. These raw materials make clothes expensive to produce locally. In addition, importing second-hand clothing from the United States has stifled domestic demand for locally made clothes. The country has been trying to curb this practice by raising tariffs on second-hand clothing imports.

The government hopes to phase out the use of second-hand clothing and instead promote production of locally made clothing. It has put together a campaign to support local entrepreneurs and artisans. It has allocated a budget of $1,500 to train each worker. It also coordinates training with local institutions.

The Rwandan government is also encouraging local businesses to invest in the garment sector. It has set aside 5 hectares of land in Kigali’s Special Economic Zone for the facility. It has put together groups of manufacturers to help reduce the cost of raw materials. It has also put together teams from other countries to train Rwandan workers.

Pink Mango C&D Group

Located in the Kigali Special Economic Zone, this modern garment factory produces a range of clothing for both domestic and export markets. Its production includes nightwear, work wear, sportswear and a whole range of garments.

Its mission is to promote African craftspeople and designers. It is the largest private sector employer in Rwanda. The company’s operations directly employ more than 1,000 Rwandans.

The firm plans to hire seven thousand workers in the next five years. It will build a modern garment factory in the Kigali Special Economic Zone. It will also create a garment ecosystem in Rwanda. Its goal is to expand the country’s textile industry and increase the country’s exports.

The Chinese firm is expected to produce $20 million in export earnings within the next five years. It will provide a good standard of living for many Rwandans. It will also help the country reduce imports of clothing. It will help build a skilled workforce and improve household income.

The Chinese garment company is the first to invest in Rwanda’s manufacturing industry. It has lifted thousands of Rwandans out of poverty. It has also contributed to the development of the local shoe industry. It has helped Rwanda to reduce its dependence on imports of second hand clothing.

C&H Garments Ltd

Located in the Kigali Special Economic Zone, C&H Garments Ltd is a clothing manufacturing company in Rwanda. The firm produces uniforms, safety vests, athletic wear, and fashion wear. It exports its finished product to Europe and the United States. It employs more than 1,200 workers in the country.

Ma, an energetic petite woman from central China, moved to Rwanda two years ago on an invitation from the Private Sector Federation. She has been working in textiles in developing countries for sixteen years. She says Rwanda’s clean, business-friendly atmosphere attracted her.

She believes her experience in Africa and the expertise she has in textiles will help her meet the challenge of developing Rwanda’s industry. She hopes her new brand, Asantii, will be the first global style-led brand in Africa. She also hopes the Asantii store will serve as a showcase for the nation’s potential as a manufacturing base.

C&H employs a workforce of 1,400 people. Most of the company’s production is exported, although it is also working on building a local market. They have plans to expand to 16 production lines.

The factory produces a range of garments, including the uniforms of the Rwandan police and schools. It imports raw materials from Ghana, Tanzania, and Kenya.

Fine Spinners Ltd.

Among the new players in Uganda’s textile industry, Fine Spinners Limited has been making the rounds. This company has recently invested over $40 million in the East African country. In the process, it has also acquired two milling factories and signed up over 6,000 cotton farmers.

The company was given a free ride by the government, which opted to become the majority shareholder. According to the government, this was done to stimulate textile production in the country. In the process, it also gave a substantial boost to the economy. Some of the benefits that came with the deal included: i) the government was now able to claim ownership of the company; ii) the company was able to generate more than 18,000 jobs; and iii) the government was able to convert its debt into equity.

The government also negotiated a deal to lease a facility to Fine Spinners, which in turn was supposed to help the company expand its business. However, the company had a difficult time paying back the loan. It has since defaulted on the second 50%. The company has been operating under the auspices of the Ministry of Economic Development and Planning.

The company also has been using a new plant in Nambala to produce sustainable cotton, which it then sells to local and international buyers. Some of the products sold include: i) DTY yarn; ii) vortex yarn; iii) ITY yarn; and iv) aforementioned PFDY yarn.

Kenyan textile sector earned more than USD 430 million in 2016

Historically, the textile and apparel industry in Kenya has been one of the pioneer industries in driving industrialization. The country’s garment sector is expected to be a major driver of manufacturing in the coming decade. However, the sector is facing some serious challenges.

For starters, the sector has to face the challenge of multiple taxation, complicated regulations and lack of easy credit. Moreover, the sector needs reliable physical infrastructure and continuous water supply.

The industry also has to deal with energy costs. Kenya’s main cash crop is cotton. It is sown from April to June and matures between November and February. Typically, it takes six to eight months to produce a bale of cotton.

The sector is also tasked with meeting stringent quality requirements. Many of the companies in the industry are foreign-owned. They import raw materials and fabrics from other countries.

The government has been attempting to improve the sector’s supply chain. It is a three-tiered structure consisting of input providers, yarn spinning firms, and design and sewing firms.

It is estimated that a fully developed value chain will have ten percent of the nation’s workforce engaged. It will also create a variety of jobs in the economy.

United States, the United Kingdom and Germany were the top three used clothes exporters in 2015

Despite its economic troubles, Rwanda is trying to reduce its reliance on the second-hand clothing industry. President Paul Kagame has been vocal about his concern for low-cost apparel sourcing. But his ban on imported used clothes has left the country’s second-hand market in crisis.

The Trump administration has threatened to slap tariffs on Rwandan goods if changes to the country’s import policy aren’t made by May. The US Trade Representative, a government agency that recommends trade policy to the president, warned the country that it would lose its benefits under the African Growth and Opportunity Act if it increased the tax on imported used clothes.

Rwanda’s finance minister said the rise was aimed at limiting health risks associated with wearing second-hand products. But experts have criticized the measure as an overreaction. They say the country’s hardships are likely to be short-lived, and opening new factories will create better paid jobs.

Tanzania and Uganda have also raised taxes on second-hand garments. Their finance ministers have expressed concerns about cheap Western clothes being exported to the East African Community, including Rwanda, which they say are outstripping the value of second-hand clothes imported from the US. Several other East African countries have threatened to ban such imports.

Impact of US intervention on Rwanda’s garment manufacturing industry

Despite its economic crisis and civil war, Rwanda has undergone a remarkable transformation in the last two decades. Growth rates have averaged 8 percent a year and poverty has fallen. It is now moving towards high value sectors such as agro-processing, tourism, and light manufactures. But it will need to improve its competitiveness by gaining digital and knowledge-based skills.

A major challenge for Rwanda is its landlocked status. A landlocked country has limited capacity to import and export raw materials. However, inland cargo transportation facilities can help reduce costs for cross-border trade. This has helped Rwanda increase its competitiveness in its exports.

One of the largest potential sectors for exports is tourism. Tourism generates about a quarter of Rwanda’s total export earnings. The government has a goal to make Kigali a hub for international conferences and upscale hotels. It will also need to acquire significant capital.

In recent years, Rwanda has moved from low productivity activities such as agriculture and services to higher productivity activities, such as manufacturing. The labour force has also moved from low-productivity jobs to more productive activities such as agro-processing and manufacturing.

Investments in infrastructure have increased access to power and telecommunications. In addition, there have been several projects to improve transport systems. These investments have reduced the cost of imported inputs for the manufacturing sector.