Rwanda government and C&H, a Chinese based garment manufacturing company has entered into $10million (about Rwf7billion) new textile trade deal. Under the memorandum of understanding signed between them, the company will set up a garment manufacturing plant at the Kigali Special Economic Zone.

Following a new trade deal, Rwanda could start exporting textile garments to Europe and the USA. The factory is expected to start with over 1000 Rwandan staff but it projects to employ over 30,000 locals within five years.

According to Clare Akamanzi, the Chief Operating Officer at Rwanda Development Board, the investment will boost the local manufacturing sector and will diversify the country's export base.

The deal is in line with government's initiative to create employment opportunities for Rwandans. They look forward to seeing Rwanda create homemade garments that will be commercially successful in both domestic and export markets.

Government will fund 50% of the cost of the training programmes while the investor will provide the equipments and any other expertise. The factory is expected to be fully operational and ready to export in the next 18months.

Achieving large scale industrial manufacturing and developing a broad base of skills in manufacturing is in line with achieving the goals of Rwanda's Second Economic Development and Poverty Reduction Strategy (EDPRS2) programme.

While, Helen Hai, Director of C&H Garments Company said that the investment will act as a spring board to attract more Chinese investors into the country.

C&H Garments is pleased to start a new manufacturing unit in the Kigali Special Economic Zone. They will shortly be shipping new equipment from China and plan to recruit their initial 200 workers in September 2014. They believe that Rwanda can offer a strong and disciplined workforce that will ensure they develop a successful business exporting garments to both Europe and the US.

The company is projecting to set up a textile plant that will employ more than 30,000 in the next 5 years to supply both regional and international markets.