A national audit that has exposed bad performance in the wood industry in Rwanda has forced the government to launch an open competition that will see established firms getting funds and abilities to increase the industry.
The National Industrial Research and Development Agency (NIRDA) published audit results on July 25, 2019, where it was found that only 1 percent of the 127 companies in the sample use automated wood processing systems.
45% of timber processing firms still use mechanical means, while 54% are semi-automated, according to the results.
This hinders the country’s determination to decrease trade imbalance by growing exports of added value products.
For instance, statistics available from Rwanda’s National Statistics Institute show that in 2017 exports of wood products including paper and paperboards amounted to $34.73 million.
Rwanda exports to Egypt, Malaysia, China, among other nations, paper and paperboard products including notebooks, folders and albums.
“Wood processing firms need to use high technology to produce wood products but their investment capital is still wanting,” Kampeta Sayinzoga, Director General of NIRDA said.
“We shall help firms to acquire high-end technologies through an upcoming open call programs.”
Companies dealing with the value chain of wood processing will apply for assistance through the internet portal of NIRDA, according to NIRDA officials.
The application process is coupled with coaching support to have the very best.
The number of companies chosen will determine the funds needed to invest in technology, capacity building, and consulting.
“In addition, as per the tech audit recommendations, stakeholders mapping was proposed and shall be an important tool to involve them,” Jean d’Amour Mbonyinshuti, the Communication Specialists at NIRDA told journalists.
“We will support those that have been running businesses for not less than two years. We don’t intend to support start-ups but rather those companies which are in the business and can boost the production when supported, as champions.”
However, NIRDA indicated that they would rather finance the purchase of machinery as an organization they are not offering cash. Your strategy is “help selected firms buy modern equipment that use modern technologies to boost efficiency as well as creating more decent jobs,” according to Mbonyinshuti.
Application for this grant will be open for one month in August this year.