Importing wood-related products cost Rwanda millions of dollars as a result of inadequate technology in wood processing, a new audit has disclosed, calling for industry government subsidies.
The audit was conducted in 10 districts on 127 wood processing companies, which were randomly chosen and evaluated.
The audit report, conducted since March this year and initiated this week, evaluated the industry’s status, highlighting gaps in terms of raw materials, handling techniques, and the instruments and facilities used.
The audit was also commissioned by the National Industrial Research and Development Agency (NIRDA) to determine the competitiveness of the wood sector in Rwanda, the challenges facing actors in the value chain and the bottlenecks.
Dr. Paul Mugabi, a researcher and consultant in the audit team, said Rwanda imported $34.7 million in pulp, paper and board articles in 2017, well above $126 million in Tanzania in 2018 and $162 million in Uganda.
In 2018, Kenya spent $433.6 million on comparable products being imported.
Rwanda’s imports of wood-related products include paper, board, and office furniture, which experts said could be manufactured locally.
“Most of these furniture items from Malesia, China, can actually be done here if the right training and the right equipment is used,” he said
The audit highlighted one of the possibilities that the private sector should take advantage of is environmentally friendly policies, particularly on the ban on polythene bags, which call for the use of packaging products such as paper-like products that can be readily decomposed.
It also suggested the introduction (long-term) of pulp and paper technology, in relation to the short-term adoption of paper recycling technology.
In order to benefit from the export sector, Rwanda also requires to embrace contemporary technology to enhance the finishing of local wood products.
“There is a market even in the region and beyond,” Mugabi said.
NIRDA Director-General Kampeta Sayinzoga said this scenario suggests investment opportunities in the wood industry in Rwanda.
“We will work with Rwanda Development Board (RDB) so that we determine whether there is a Rwandan or foreign investor who wants to venture into this activity,” she said. “What is good is that it has been established through the audit that it is a possible undertaking and has a market in Rwanda and in our neighbouring countries.”
Only 1% of the timber processing machinery surveyed is completely automated, 54% are semi-automated, while 45% are completely manual.
The difficulties facing local businesses include competition from imported products, restricted demand for wood and wood products, elevated taxes, absence of suitable technology, absence of financial capital, absence of legal equipment, and restricted supply of electricity and water.
This was said by Anatole Mbazabagabo of the Nyaruguru District ; “We use manually operated equipment, which delays our work.”
The association – Center Scout Rural de Développement Nteko from Nyaruguru District that he represents produces furnishings such as doors, windows, beds, chairs, cupboards.
“If we get support, we can be able to satisfy demand,” he said.
Theoneste Sindikubwaba, another Nyaruguru District carpenter said they are unable to convert wood dust into other products due to restricted technology.
“We do nothing with the wood dust, it is left on site. That is a loss. We should have technologies to make use of whatever we have spent efforts to produce,” he said.
NIRDA claims the audit findings will inform the preparation process “Open Call for support” governance through NIRDA management.