Within 24hours of arriving in Rwanda, a Chinese firm has indicated to officials that it wants to move forward with the process of establishing a permanent presence.
The Rwanda Development Board (RDB) is hosting 22 executives representing firms from Zhuji and Shengzhou, two of China’s manufacturing powerhouse cities. These cities have also gained reputations for global manufacturing and high levels of entrepreneurship.
RDB announced on Tuesday – the same day of the arrival of the Chinese executives on a 3-day visit, that one of the manufacturers has already expressed an interest in establishing in Rwanda. “RDB expects that more will follow,” said the agency.
Speaking at event organised for the delegation, Professor Justin Lin, former Chief Economist of the World Bank, said Chinese manufacturing companies in labour intensive sectors are increasingly looking to relocated some of their production to Africa both to reduce costs and be nearer to key markets and customers in Europe. These firms are from mainly the textiles and footwear sectors.
For RDB’s CEO, Amb. Valentine Rugwabiza: “Rwanda-Chinese relations are built on 46 years of continually improving commercial and diplomatic relations”
Data from RDB shows that total contribution of China investments to date out of the total stock of investments is just above 200 million USD. Rwanda Imports from china are valued at 216,671, 000 USD while Rwanda Export to China value is 1,857,000 USD.