Rwanda: 250,000 tonnes of steel per year to reduce imports

Prime Minister Justin Nsengiyumva inaugurated the facility in the industrial park of Musanze, located in the northern part of the country. The plant processes iron ore into finished products intended primarily for construction and infrastructure, including rebar, nails, tubes, wires, and other metal profiles.

The facility operates on an integrated chain that spans from ore processing to direct iron reduction, followed by melting, casting billets, and manufacturing steel products. This setup is expected to allow Rwanda to retain more added value within the country instead of importing a significant portion of its steel material needs.

The project, backed by Indian investors, was announced with an investment of approximately $20 million. The Rwandan Ministry of Trade and Industry indicated at the project’s launch that the plant would target an annual capacity of 250,000 tonnes and create around 1,000 direct jobs, in addition to indirect employment in mining, transportation, logistics, maintenance, and services.

An import bill exceeding $150 million

According to figures cited during the inauguration, Rwanda imported over $150 million worth of steel products in 2025. Kigali anticipates an increase in demand due to investments in roads, buildings, housing, energy, and other infrastructure, which underscores the need for greater local production.

The government has urged A1 Iron & Steel to fully utilize its capacity, enhance productivity, and train more Rwandan workers. Authorities also expect the site to facilitate a transfer of industrial skills and develop relationships with local suppliers.

The company aims, in the long term, to supply neighboring markets, including the Democratic Republic of Congo, Burundi, Uganda, Tanzania, and South Sudan. Its stated goal is to develop a regional brand of steel products manufactured in Rwanda, beyond merely replacing domestic imports.

The foundation stone of the plant was laid in November 2024 in the Musanze industrial park. Production eventually commenced in April 2026, ahead of the official inauguration of the site on September 11.