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New silk factory to increase Rwanda’s exports

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A new factory will open next month at the Kigali Special Economic Zone to improve Rwanda’s silk sector. It will buy cocoons from farmers and make products to be exported.
Rwanda Silk Processing Factory is a result of a partnership between HEworks Rwanda Silk Ltd – and the National Agriculture Exports Development Board (NAEB).

Rwanda Silk Ltd’s Managing Director, said that by exporting silk products on the international market, the factory will contribute to the country’s export growth.
In its initial operation this year, the factory will export 20 tonnes, of which five will be raw silk while 15 will be sheet, which will generate $800,000.

“We are planning to be able to export silk that will be over $100 million by 2025, thus our factory will solve the problem of balance of payments where the Country is always in deficit due to the fact that its import curve is always above its export curve,” he said.

Given that silk yarn production is going down in countries such as India and China – which have been global leaders in this industry – there is huge opportunity in Rwanda’s silk industry.
Statistics show that Rwanda’s agricultural exports generated over $515.9 million (over Rwf447 billion) in the year from July 2017 to June 2018, indicating an increase of 44.73 per cent compared to $356.5 million (over Rwf316.8 billion) generated in the same period in 2016-2017.