Rwanda has opened a new steel plant in Musanze with an annual production capacity of 250,000 tonnes, in a move expected to reduce the country’s dependence on imported steel and strengthen local manufacturing.
Prime Minister Dr. Justin Nsengiyumva officially inaugurated A1 Iron & Steel Rwanda Ltd on September 11 at the Musanze Industrial Park.
The plant, built with Indian investment, is the first fully integrated steel-processing facility in Rwanda, covering the production chain from iron ore processing to the manufacture of a range of finished and semi-finished steel products.
The facility is expected to create 1,000 direct jobs and a further 2,500 indirect jobs.
Rwanda currently spends nearly $200 million a year importing steel. The new plant is expected to reduce the country’s steel import bill by about $100 million once it reaches full production.
Nsengiyumva said the investment marks an important step toward building an industrial economy based on productive industries capable of competing in international markets.
He also said the project reflects growing economic ties between Rwanda and India.
As Rwanda continues to expand infrastructure, develop urban centres and increase commercial activity, the prime minister said boosting domestic steel production would be critical to meeting rising demand.
“Extracting and processing the iron ore found in Rwanda and turning it into steel here helps us increase its value and develop our economy,” Nsengiyumva said.
The prime minister, however, urged the company to make full use of the plant’s production capacity and ensure that the investment delivers tangible benefits to the country.
“Building industries is the first step. The more important task, which determines whether an investment delivers results, is to use the plant’s capacity fully and productively,” he said.
He pledged continued government support in areas including infrastructure, energy, workforce skills and the regulatory framework needed to support modern industrial operations.
Himanshu Tiwari, managing director of A1 Iron & Steel Rwanda Ltd, said the project was intended to do more than increase the number of factories in Rwanda.
“Today, we are not just starting a plant. We are starting a new chapter in Rwanda’s journey to accelerate industrialisation,” Tiwari said.
He said the company aims to add value to Rwanda’s natural resources, expand local production, reduce steel imports and create jobs, while positioning the country to become a major steel producer in the region.
The plant will process iron ore using direct reduced iron (DRI) technology before melting the material into steel and producing billets and other steel products.
According to the company, the technology will allow Rwanda to capture more value from its mineral resources instead of exporting raw materials or relying on imports of processed steel.
Tiwari described steel as a foundation of industrial development because it is used in roads, bridges, buildings, factories, electricity and water infrastructure, agriculture and housing.
The company also plans to train Rwandan workers, particularly young people, in modern industrial technologies.
Employees are expected to receive training in operating advanced machinery, managing production processes and using automation technologies.
Minister of Trade and Industry Antoine Kajangwe said the plant could help narrow Rwanda’s trade deficit by reducing the amount of foreign currency spent on steel imports.
Kajangwe said Rwanda spends nearly $200 million annually on imported steel, while the new facility could reduce foreign exchange outflows by about $100 million once it is fully operational.
He said the money retained within the country could instead support economic growth through local production, value addition and job creation.
Kajangwe said the investment is aligned with Rwanda’s industrialisation strategy and the government’s efforts to transform the structure of the economy under the second National Strategy for Transformation (NST2), which seeks to increase domestic industrial production.
With a planned annual output of 250,000 tonnes, A1 Iron & Steel Rwanda is expected to become a significant addition to Rwanda’s manufacturing capacity and contribute to efforts to build a more self-reliant steel industry.
