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1
REPUBLIC OF RWANDA
MINISTRY OF TRADE AND INDUSTRY PO BOX 73 KIGALI, RWANDA
WOOD PRODUCTS CLUSTER
STRATEGIC PLAN
2014 - 2019
CONSULTANT FIRM: SEVEN SOLUTIONS (SESO)
February 2014
2
Contents List of acronyms ...................................................................................................................................... 5
EXECUTIVE SUMMARY ......................................................................................................................... 7
1. INTRODUCTION .......................................................................................................................... 11
1.1. What is clusters ? ................................................................................................................... 12
1.2. Objectives.............................................................................................................................. 13
1.3. Methodology .......................................................................................................................... 14
1.3.1. Assessment ................................................................................................................ 14
1.3.2. Data collection ............................................................................................................ 14
1.3.3. Data analysis .............................................................................................................. 15
1.3.4. Reporting .................................................................................................................... 15
2. OVERVIEW OF THE WOOD CLUSTER ......................................................................................... 15
2.1. Introduction ............................................................................................................................ 15
2.2. Structure of the wood processing sector in Rwanda ................................................................... 16
2.3. Key stakeholders in Wood Sector ............................................................................................ 19
2.4. TVET Schools ........................................................................ Error! Bookmark not defined.
2.5. Some private companies/cooperatives involved in wood industry Error! Bookmark not defined.
2.6. Imports and exports of wood based products in Rwanda ............................................................ 20
2.7. Raw material from Rwanda ..................................................................................................... 22
2.8. Raw and prefabricate material from neighbouring countries ....................................................... 25
2.9. Products produced in Rwanda ................................................................................................. 25
2.10. Woodworking value chain functions ...................................................................................... 27
2.10.1. Forestry plantation ................................................................................................... 29
2.10.2. Felling..................................................................................................................... 30
2.10.3. Sawmilling............................................................................................................... 30
2.10.4. Transport ................................................................................................................ 30
2.10.5. Drying and seasoning .............................................................................................. 30
2.10.6. Machinery ............................................................................................................... 31
2.10.7. Joinery/furniture manufacture.................................................................................... 31
2.10.8. Workshop layout ...................................................................................................... 31
2.10.9. Education program .................................................................................................. 31
2.10.10. Summary of weaknesses .......................................................................................... 32
3. PESTLE ANALYSIS ...................................................................................................................... 33
3.1. Political context ...................................................................................................................... 33
3
3.2. Economical context ................................................................................................................ 38
3.3. Social and cultural context ....................................................................................................... 38
3.4. Technological context and infrastructure ................................................................................... 39
3.5. Legal context ......................................................................................................................... 39
3.6. Physical environment .............................................................................................................. 40
4. STATUS OF THE WOOD CLUSTER IN RWANDA .......................................................................... 40
4.1. Challenges of the wood value chain in Rwanda ......................................................................... 40
5. STRATEGIC FRAMEWORK .......................................................................................................... 50
5.1. Potential products to upgrade the Wood cluster ........................................................................ 50
5.2. Areas of wood technology sector improvement in Rwanda ......................................................... 52
5.3. Access to finance ................................................................................................................... 55
5.4. Increasing market share .......................................................................................................... 55
5.5. Capacity building of wood processors....................................................................................... 56
5.6. The creation of wood Producers cooperatives ........................................................................... 57
5.7. Agakiriro Centers.................................................................................................................... 58
5.8. Logical framework .................................................................................................................. 59
4
List of tables
Table 1: SMEs involved in wood working in Rwanda ................................................................................ 17 Table 2 : Imports of wood products in Rwanda ......................................................................................... 20
Table 3 : Exports of wood products in Rwanda ........................................................................................ 22 Table 4 : Different types of timber found on Rwandan market ......................................................... 24 Table 5 : Classification of wood products made in Rwanda ............................................................. 26
Table 6: Annual plantation production (m³) ............................................................................................. 29
List of figures
Figure 1 : Map of wood products cluster producers .......................................................................... 18
Figure 2: Woodworking value chain functions .................................................................................. 28 Figure 3 : Strategies to upgrade the woodworking cluster ................................................................ 50
Figure 4 : Proposed capacity building development structure ........................................................... 56
5
List of acronyms
ADARWA Action pour le Dévelopment de l'Artisanat au Rwanda
APARWA Association Pour la Promotion de l'Artisanat au Rwanda
BNR National Bank of Rwanda
BoD Board of Directors
CDF Common Development Fund
CEO Chief Executive Officer
CIF Cost Insurance and Fret
CPC Community Processing Center
DITT Dual integrated technical training
DDP District Development Plan
DRC Democratic Republic of Congo
EAC East African Community
EDPRS Economic Development and Poverty Reduction Strategy
ENRSSP Environment and Natural Resources Sector Strategic Plan
FOB Free On Board
GDP Gross Domestic Product
GNP Gross National Product
GoR Government of Rwanda
ICT Information & Communication Technology
IDP Integrated Development Programme
IPRC Integrated Polytechnical Regional Centers
ISAR Institut des Sciences Agronomiques du Rwanda (National agricultural research organization)
MDF Middle Density Fiberboard
MDGs Millenium Development Goals
MINEDUC Ministry of Education
MINICOM Ministry of Trade and Industry
MININFRA Ministry of Infrastructure
MINIRENA Ministry of Natural Ressources
MOH Ministry Of Health
MOU Memorandum of understanding
NEPAD New Partnership for African Development
NES National Export Strategy
NFC New Forest Company Ltd
NIP National Industrial Policy
OSB Oriented strand board
PAREF Projet d’ Apuit à la Reforestation
PESTLE Political, Economical, Social, Technological and Legal environment
PSF Private Sector Federation
6
PSL Parallel strand lumber
RBS, Rwanda Bureau of Standards
RCA Rwanda Cooperative Agency
RDB, Rwanda Development Board
SCL structural composite lumber
SESO Seven Solutions
SFM Sustainable Forest Management
SME Small & Medium Entreprise
TSS Technical Secondary School
TVET Technical & Vocational Education Training
UN United Nations
WDA Work Development Authority
7
EXECUTIVE SUMMARY
Wood has established itself as valuable natural resources for energy and constructional material for variety of
applications, such as constructions of building, furniture items, bridges, boats, etc. It is in that reason that
wood cluster has been selected as one of 10 unique SME clusters to be prioritized in Rwanda.
The SMEs clustering strategy has been adopted because of to its importance for SMEs development. Cluster
based intervention engenders collective action, dialogue, trust and capacity building within clusters and with
other linked organizations and, compared to individual organisations, clustered enterprises are more
competitive. While the growth of individual small-scale firms is constrained by limited access to resources and
inability to achieve scale and scope economies, firms within clusters benefit from collective efficiency gains.
Those gains include joint actions ranging from collaborative relations between individual firms to the
establishment of multilateral institutions such as associations, cooperatives or political lobbies. The wood
sector which is still traditional will benefit from cluster project to be more competitive.
This strategic planning exercise was preceded by a comprehensive Wood Cluster assessment in Rwanda
conducted in order to get a general picture on the current context and profile of this Cluster. Different functions
of the wood value chain were analyzed and development upgrading strategies were proposed.
The wood industry is still facing challenges throughout the whole value chain starting from forest plantations
up to end product making and selling. The Rwandan forests are of two categories, natural and plantations.
Only plantations can be harvested and are dominated by Eucalyptus spp which account almost 64% of
planted species mostly owned by privates who have not enough knowledge about standardized forest
management practices. That leads to low production in the wood industry with low quality.
The production process starts with felling and sawmilling using traditional methods, this lead to low quality and
productivity within the cluster. The inefficiency in sawing leads to huge losses of around 20% to 30% from
round volume of sawn wood product.
The transport of timbers is expensive too as forests are mostly located in highlands with limit access to roads.
8
The quality of products is highly affected by the lack of drying effective technologies. While it is possible to use
low cost traditional methods for timber drying, processors lack enough capital to get needed timber as time
requirements for drying are not observed, the results being a poor quality production which get bended after
few days.
The quality is also affected by the use of traditional machines which produce products that cannot compete
with imported ones. Let mention that most of those machines are outdated without adequate maintenance.
The marketing of Rwandan products also is an important issue to consider.
The assessment of the wood cluster was conducted countrywide, results showing that the wood working
industry (Carpentry, furniture and wood based products) counters 3 177 units employing 8590 People.
The customers of wood products expressed that Rwandan products are of low quality and bought just because
of their affordable prices, most important inefficiencies in their production being the lack of precision, bad
finishing and poor bending due to humidity in timbers, etc.
The lack of enough capital was identified as major constraint that affects the production capacity and quality
and limits the access to modern technologies.
A professional sharpening service for high quality tools and saw blades is missing too.
Considering human resources, the wood working industry is dominated by peoples who learn by doing
from their colleagues with limited access to professional know-how. The lack of technical and
managerial skills affects therefore the effectiveness of local wood enterprises.
The work environment is not safe. There is lack of waste management (sawdust, chips, trims...) strategy,
international health and safety regulations are not at all observed and machineries not installed
accordingly.
The wood industry faces also insufficient and high cost electricity.
9
To promote the wood industry and boost its development, the assessment identified elements to focus on as
follows:
Development of affordable engineered products industry: veneer technology, fiber/particle board
technology;
Availability of modern woodworking equipment and appropriate technology;
Development of wood products standards certification and workers safety regulations;
Skills development;
Waste management improvement; etc.
Even if the wood cluster is currently facing many challenges that limit its contribution to national economy,
there are opportunities which can guarantee the sector sustainable development. This is the rationale of the 5-
year strategic plan of the wood SME product cluster.
The strategic objectives defined are following:
- Setting up a CPC to serve as a vehicle of all initiatives/interventions within the cluster and to bring in
new products to boost the wood industry in Rwanda;
- Strengthening technical skills of existing wood processors;
- Increasing access to national and regional market;
- Developing Wood centers (Agakiriro) in all Districts of the country;
- Facilitating the creation of Wood workers cooperatives and improve leadership of existing ones;
- Facilitating wood makers access finance to acquire up – to - date technologies and new equipments;
- Increasing access to modern equipments and increase their productivity;
- Increasing Managerial skills of wood workers;
- Setting up wood working Standards and safety regulations.
The Ministry of trade and Industry is determined to work closely with all the stakeholders to boost the
development of the wood cluster and promote the Rwandan economy. Among other activities to develop the
cluster, the Ministry will support installation of the CPC to upgrade the quality of wood products and transfer
appropriate know-how to wood makers. The CPC will be a pilot industry to produce engineered wood to use as
raw material for domestic wood working enterprises and export for neighbouring countries. It is a capital
10
intensive project which will sustain wood working industry and contribute to the global development of the
country.
The CPC will contribute to wood makers skills development; short courses will be offered focusing on specific
needs within the cluster; i.e. specific furniture making, finishing, timber drying, safe operation of hand tools,
etc. In a period of 5 coming years, the CPC is supposed to train about 600 existing wood producers in up to
date wood processing technologies. The Ministry of Trade and Industry will collaborate with MINEDUC and
WDA as main stakeholders in the cluster to improve technical skills of beneficiaries within the CPC.
The 5 years strategic plan proposes to gather together wood processors into cooperatives and associations as
a way to fight against presented constraints and promote the cluster. Cooperatives/associations will therefore
operate Agakiriro Centers that are being created in all Districts.
Wood processors cooperatives will then vehicle the cluster effectiveness and enhance collective actions such
as supply of big demand, bulk purchase of raw material and advanced technologies, sharing of heavy
equipments, etc.
All this will create a need to build capacity of wood makers in leadership and cooperative management, the 5
years strategic plan targets to train about 1500 wood producers countrywide accordingly i.e. 50 Producers per
district.
As mentioned above, 80% of Woodworkers have expressed that they lack sufficient finance for their activities.
That hinders the development of the cluster as producers cannot buy appropriate modern equipment but also
cannot get enough working capital to buy sufficient timber to cover the time required for drying. MINICOM and
its stakeholders will advocate for the cluster to get more access to finance and improve the wood maker’s
skills for a better relationship with financial institutions.
The created cooperatives/associations will play a useful role in negotiations with financial institutions about the
loan terms such as interest rates, repayment period, collateral, etc, and members will benefit various financial
facilities for their enterprises development.
Again the strategic plan proposed, for marketing purposes, opening of showrooms in Neighbouring countries
to increase access to regional market and promote Rwandan wood products.
11
1. INTRODUCTION
SMEs development is one of the key pillars of Rwanda’s vision to attain a middle Income Country status by the
Year 2020. In fact, the sector has the potential to generate substantial off farm employment, increase exports,
increase incomes and widen the tax base. Whereas enterprises that add value have higher potential to
achieve these goals, Rwandan SMEs face following foremost constraints to capturing value-added processing
income:
1) SME clusters lack organization and coordination
2) Do not possess the basic business and management skills,
3) Lack of innovation and technical skills to be competitive, limited access to market and appropriate
technology;
4) SMEs cannot always absorb individually the cost of necessary processing equipment, and have problem
to access finance.
To address these challenges and unlock SME competitiveness, the Ministry of Trade and Industry (MINICOM)
undertook a process of identifying the most competitive SME clusters per district across the country.
The objective of SME cluster project was to identify the most competitive SME clusters per district across
Rwanda, identify key issues along the value chain (Product cluster map) and develop strategic interventions
based on identified needs in order to support SMEs undertake business activity within sectors.
In order to facilitate strategic interventions and enable efficient use of resources, a total of 20 unique SME
product clusters were identified countrywide and the Ministry of Trade and Industry has initiated studies for the
said clusters development.
The Wood Cluster is one of the most important Clusters that once developed will contribute a lot to boost the
Rwandan Economy. However this cluster is facing a lot of challenges within the whole value chain. Those
challenges scale up from forest plantation, felling, sawmilling, transport up to sales and marketing of products.
Therefore, the MINICOM is determined to work closely with other stakeholders to uphold the wood cluster
resulting in reducing enormously wood products imports and increase exports.
12
The activities planned include setting up a Community Processing Centre that will serve as a centre of
excellence of wood processing in Rwanda and the region, the capacity building of woodworkers, the creation
of woodworking cooperatives/associations, the acquisition of modern equipment, setting up woodworking
quality standards, etc.
1.1. What is a cluster?
The cluster concept has gained increasing prominence over the last decade in different countries. The
foundations of this paradigm can be traced back to the work of the economist Alfred Marshall, who in
Principles of Economics (1890) described the phenomenon as “the concentration of specialized industries in
particular localities” and noted that these
agglomerations of small-scale businesses enjoyed
economies of scale comparable to those of large
firms.
More recently, Michael Porter popularized the
concept of industry clusters is his book The
Competitive Advantage of Nations (1990). Thereafter,
there has been a surge of interest in clusters as
drivers of economic growth and hubs of innovation.
Rwanda has also adopted the cluster strategy in
order to uphold the performance of SMEs. Cluster based intervention engenders collective action, dialogue,
trust and capacity building within clusters and with other linked organizations and sectors.
Focusing on product priority, clusters will serve as a vehicle for enhancing competitiveness of Rwandan SMEs.
Following are cluster strategy advantages:
Clusters are geographic
concentrations of
interconnected companies,
specialized suppliers,
service providers, and
associated institutions in a
particular field that are
present in a nation or region.
13
To start with, clustered enterprises can achieve levels of competitiveness that reach beyond the potential of
individual enterprises. While the growth of individual small-scale firms is constrained by limited access to
resources and inability to achieve scale and scope economies, firms within clusters benefit from collective
efficiency gains, i.e. “the competitive advantage derived from local external economies and joint action”.
External economies include the availability of a specialized labour force, machinery and input suppliers, the
attraction of traders and buyers as well as an industrial atmosphere where information and knowledge are
easily shared. Joint actions range from collaborative relations between individual firms to the establishment of
multilateral institutions such as associations, cooperatives or political lobbies.
Therefore, cluster enterprises are able to achieve higher and sustained growth rates, for synergies and
collaborative linkages allow them to pool resources and efforts together for the achievement of shared
economic goals.
1.2. Objectives
The main objective of this strategic plan is to increase the competitiveness of the Rwandan Wood products
Cluster on national and regional level.
For that to be achieved specific objectives have been defined which are:
- Setting up a CPC to serve as a vehicle of all initiatives/interventions within the cluster and to bring in
the new products to boost the wood industry of Rwanda
- Strengthening the technical skills of existing wood processors
Collective efficiency gains
Market can be easily supplied by collectively serving it. From time to time it’s proven that
stand alone SMEs are unable to satisfy the demand;
Certification can be easily issued;
Shared monitoring information system (MIS) can boost SME cluster growth and efficiency;
Substantial savings can be attained by purchasing collectively needed raw materials;
sharing heavy equipment; etc.
14
- Increasing access to national and regional market
- Creating the Wood centers (Agakiriro) in every District of the country
- Facilitating the creation of Wood workers cooperatives and to improve their leadership for the existing
ones
- Facilitating cluster members to access finance to acquire up to date technologies and new equipments
- Setting up wood working Standards and products categorization.
1.3. Methodology
This strategic plan is a result of different approaches from desk study to field visits and consultation with all the
stakeholders in the wood cluster.
1.3.1. Assessment
This strategic planning exercise was preceded by a comprehensive Wood Cluster assessment in Rwanda
which was conducted in order to get a general picture on the current context and profile of the Cluster.
Different functions of the wood value chain were analyzed and development upgrading strategies proposed.
Two questionnaires have been elaborated to catch all the information required; i.e. one questionnaire
addressed to producers and another to customers and potential customers. Some indicative data from the
producers as well as sector stakeholders were established through this survey and this was the main
reference for this document.
1.3.2. Data collection
Review of Secondary Data/Documents: The strategic planning was referred to the existing official research
documents, laws, policies and regulations, different reports about wood cluster in Rwanda.
Key Informants Interview: The data collection was made at institution level and community level. A total
number of 133 woodworkers and 97 customers/Users of wood products have been interviewed.
Government institutions contacted at different levels of administration include MINICOM, RBS, RDB, RCA,
MINEDUC, WDA and Districts. Other development stakeholders composed mostly by NGO’s and PSF were
interviewed. Two questionnaires have been elaborated, one for producers and another for customers and
15
users of wood products. The expected outcome of the questionnaires was the profile of the wood cluster in
terms of quality of products, equipments, the human resources, the identification of challenges and solutions.
Field Observation: SMEs and stakeholders within the wood cluster were identified, a database constituted
and a map of the cluster SMEs designed.
Stakeholders’ validation workshop: a validation workshop for final contributions and determination of
respective roles and responsibilities to implement this strategic plan was organized by the MINICOM.
1.3.3. Data analysis
The information and data gathered from different sources were analyzed and constitute the basis of the
proposed strategic plan for five years from 2014. The projection quantitative data were presented in tabular or
graphic forms while quantitative information incorporated in the report to support the quantitative data.
1.3.4. Reporting
Based on the status of the cluster and mostly on the challenges the cluster faces, the strategies to boost the
cluster were elaborated. The report is organized into five sections. Section 1 introduces the background,
objectives and the methodology. The second section presents a summary profile of the wood cluster in
Rwanda, the third is about a PESTLE environment analysis of Rwanda relating it to wood sector; the fourth
comprises the results of the survey with the identification of challenges that face the wood industry and the last
provides strategic interventions and explore implementation strategies with a specific matrix or logic framework
with proposed budget allocation.
2. OVERVIEW OF THE WOOD CLUSTER
2.1. Introduction
Wood, from time immemorial has established itself as valuable natural resources for energy and
constructional material for variety of applications, such as constructions of building, furniture items, bridges,
boats, etc. The development of industries has allowed wood to be treated and engineered wood has been
used as an excellent product in terms of quality, durability and cost.
16
Rwanda holds two forms of wood-based industry; primary processors (Pit-sawyers) and secondary
processors (furniture and joinery) which are formally and informally organized into cooperatives, companies,
self-formed associations and individuals. No tertiary processing industries (plywood unit mills, particle boards)
has been established. The wood-based industry and wood products informal sector have not been growing
as required to produce high quality product and to venture in competitive market of exporting though the
wood industry is dispersed throughout the country. Rwanda is a grossly importer of wood products raw
material (hardwood timber and engineered wood) in general an issue which has driven up the cost of wood
for processing. It is only through careful planning and efficient utilization of forest product that forests can be
managed on a sustainable manner, benefiting all stakeholders and contributing to national economic growth.
Limited ability to improve technology, using majority of obsolete equipment and inadequate skilled worker
makes it impossible to manufacture products to international and industrial standard hence quality of products
are very low fitting to domestic market only and not in export market.
A strategy policy and its implementation for wood industry development considering forest resources
management, carpentry and wood technology industries establishment and education program to link the
needs of wood industries and the provided training from different schools/institute is strongly needed to adopt
wood industry value chain.
2.2. Structure of the wood processing sector in Rwanda
The wood working branch (“Carpentry, furniture and wood based products: Wood sawing, drying, furniture,
domestic utility objects, transport of wood”) has a very number of enterprises and offer employment to many
people using most of their time in wood workshops. According to the study conducted in July 2013, the wood
working industry counters 3 177 units employing 8590 People. The table below indicates the number of
enterprises as well as the employees in the industry by District:
17
Table 1: SMEs involved in wood working in Rwanda
District Number of SMEs Number of Employees
1 Bugesera 168 326
2 Burera 240 522
3 Gakenke 185 326
4 Gasabo 64 519
5 Gatsibo 199 237
6 Gicumbi 96 161
7 Gisagara 24 67
8 Huye 57 388
9 Kamonyi 56 132
10 Karongi 69 274
11 Kayonza 127 162
12 Kicukiro 89 306
13 Kirehe 56 117
14 Muhanga 303 517
15 Musanze 165 535
16 Ngoma 175 312
17 Ngororero 18 72
18 Nyabihu 10 215
19 Nyagatare 156 423
20 Nyamagabe 156 338
21 Nyamasheke 101 403
22 Nyanza 72 183
23 Nyarugenge 215 401
24 Nyaruguru 49 228
25 Rubavu 46 202
26 Ruhango 24 179
27 Rulindo 108 252
28 Rusizi 20 122
29 Rutsiro 30 472
30 Rwamagana 99 199
Total 3,177 8,590 Source: MINICOM Survey, 2013
Figure 1 : Map of wood products cluster producers
Source: Survey MINICOM, July 2013
2.3. Key stakeholders in Wood Sector
A large number of stakeholders in the wood Clusters include (but not limited to ) :
- MINICOM
- MINISTRY OF FORESTRY AND MINES ( MINIFOM)
- NATIONAL FORESTRY AUTHORITY (NAFA)
- PAREF
- MINISTRY OF LANDS RESETTLEMENT AND ENVIRONMENT
- MINEDUC (TVET)
- PSF
- WDA,
- Donors (GIZ, Netherlands Embassy, BTC, Suiss contact, etc)
- IPRCs,
- Religious Carpentry workshop( Catholics, Anglicans)
- Public& Private TVET schools
- Private companies( Wood manufacturing companies)
2.4. TVET Schools
The Government of Rwanda, through WDA, is putting more efforts in technical schools. Actually 58 TVET
have carpentry and wood working in their trades. The list of those schools is on appendix.
2.5. Some private companies/cooperatives involved in wood industry
a) Agakiriro
The Agakiriro has already a big number of wood workers coordinated into cooperatives. The Agakiriro is
commonly known as a center of arts and crafts for all items but much specialized in timber and carpentry. The
wood workers in Agakiriro have developed a culture of working together. For illustration, the Gisozi Agakiriro
has up to 5 important cooperatives i.e. ADARWA, APARWA, DUHAHIRANE, COPACOM and SPROCOGI
Ltd. As a result, those cooperatives are the good models of collective investment whereby they have been
able to build the multibillion commercial complexes to boost the financial resources for their members.
20
b) NFC
The New Forest Company (NFC) is a highly experienced company. The GoR through the Ministry of Natural
resources (MINIRENA) has awarded the company a concession agreement of 49 years for:
- managing, investing in wood processing and value addition and
- Re-establishing the buffer zone and maintaining the forest cover surrounding Nyungwe natural forest
The company exists in other countries in Africa (South Africa, Tanzania, Uganda and Mozambique) apart from
Rwanda. The Africa regional office is located in South Africa but the main headquarters is located in Britain.
In terms of wood processing in Rwanda, NFC is committed to create a modern timber treatment plant, an
industrial charcoal plant, a sawmills plant integrated with kiln-drying facility and Biomass power generation
plant.
c) Others
Other private players in wood products include the Catholic Church which own “Economat general” in different
provinces, cooperatives such as KIAKA, KORA and other private companies.
2.6. Imports and exports of wood based products in Rwanda
Rwanda is a grossly importer of wood products with imports of more than 8 billion while exports are only 79
million Rwandan Francs:
Table 2 : Imports of wood products in Rwanda
CODE PRODUCTS NET WEIGHT /KG FOB RFW CIF RFW
4401
FUEL WOOD, IN LOGS, IN BILLETS, IN TWIGS, IN FAGGOTS OR IN SIMILAR FORMS; WOOD IN CHIPS 189,282 14,465,476 24,048,597
4402
WOOD CHARCOAL (INCLUDING SHELL OR NUT CHARCOAL), WHETHER OR NOT AGGLOMERATED. 23,424 1,650,847 1,655,435
4403
WOOD IN THE ROUGH, WHETHER OR NOT STRIPPED OF BARK OR SAPWOOD, OR ROUGHLY SQUARED. 1,678,911 686,323,705 692,163,472
4404 HOOPWOOD; SPLIT POLES; PILES, 1,808,639 850,439,232 850,663,527
21
CODE PRODUCTS NET WEIGHT /KG FOB RFW CIF RFW
PICKETS AND STAKES OF WOOD, POINTED BUT NOT SAWN LENGTHWIS
4405 WOOD WOOL; WOOD FLOUR. 1,540 4,190,915 4,338,767
4406 RAILWAY OR TRAMWAY SLEEPERS (CROSS-TIES) OF WOOD. 156 638,207 638,207
4407
WOOD SAWN OR CHIPPED LENGTHWISE, SLICED OR PEELED, WHETHER OR NOT PLANED, SANDED OR END- 5,721,838 1,200,682,436 1,207,957,718
4408
SHEETS FOR VENEERING (INCLUDING THOSE OBTAINED BY SLICING LAMINATED WOOD), FOR PLYWOOD O 119,488 28,671,079 31,931,859
4409
WOOD (INCLUDING STRIPS AND FRIEZES FOR PARQUET FLOORING, NOT ASSEMBLED) CONTINUOUSLY SHA 6,570 5,291,011 5,342,755
4410
PARTICLE BOARD AND SIMILAR BOARD (FOR EXAMPLE, ORIENTED STRAND BOARD AND WAFERBOARD) OF 195,742 45,962,626 53,881,050
4411
FIBREBOARD OF WOOD OR OTHER LIGNEOUS MATERIALS, WHETHER OR NOT BONDED WITH RESINS OR OTH 1,669,913 516,247,778 581,472,300
4412 PLYWOOD, VENEERED PANELS AND SIMILAR LAMINATED WOOD. 3,413,323 1,288,798,134 1,397,946,642
4413 DENSIFIED WOOD, IN BLOCKS, PLATES, STRIPS OR PROFILE SHAPES. 150,294 117,836,083 132,088,961
4414
WOODEN FRAMES FOR PAINTINGS, PHOTOGRAPHS, MIRRORS OR SIMILAR OBJECTS. 51,504 36,427,955 42,597,488
4415
PACKING CASES, BOXES, CRATES, DRUMS AND SIMILAR PACKINGS, OF WOOD; CABLE-DRUMS OF WOOD; 12,103 10,411,185 10,539,084
4416
CASKS, BARRELS, VATS, TUBS AND OTHER COOPERS' PRODUCTS AND PARTS THEREOF, OF WOOD, INCLU 114 156,880 156,880
4417
TOOLS, TOOL BODIES, TOOL HANDLES, BROOM OR BRUSH BODIES AND HANDLES, OF WOOD; BOOT OR SH 5,796 46,011,274 46,937,919
4418
BUILDERS' JOINERY AND CARPENTRY OF WOOD, INCLUDING CELLULAR WOOD PANELS, ASSEMBLED PARQU 688,259 781,574,445 844,291,305
4419 TABLEWARE AND KITCHENWARE, OF WOOD. 88,407 65,467,188 73,153,920
4420 WOOD MARQUETRY AND INLAID WOOD; CASKETS AND CASES FOR JEWELLERY 41,093 22,613,402 24,449,602
22
CODE PRODUCTS NET WEIGHT /KG FOB RFW CIF RFW
OR CUTLERY, AND SIMILAR
4421 OTHER ARTICLES OF WOOD. 5,276,896 2,086,252,666 2,091,210,988
TOTAL GNL 21,143,291 7,810,112,525 8,117,466,475 Source: BNR Statistics, 2013
Table 3 : Exports of wood products in Rwanda
CODE PRODUCTS NET WEIGHT/KG FOB RFW
4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips 13,000 265,000
4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end- 16,700 1,313,645
4410 Particle board and similar board (for example, oriented strand board and waferboard) of 9,500 430,493
4411 Fibreboard of wood or other ligneous materials, whether or not bonded with resins or oth 8,720 824,975
4413 Densified wood, in blocks, plates, strips or profile shapes. 409,200 22,818,754
4414 Wooden frames for paintings, photographs, mirrors or similar objects. 11 36,556
4415 Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; 16,679 8,065,733
4418 builders' joinery and carpentry of wood, including cellular wood panels, assembled parqu 2,000 1,213,728
4420 wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar 6,738 471,186
4421 other articles of wood. 15,500 43,755,826
GNL TOTAL 498,048 79,195,896 Source: BNR statistics, 2013
2.7. Raw material from Rwanda
a) Sawn wood and wood demand
The annual consumption of wood in Rwanda is estimated to be around 1m3 per capita. About 95% of this is
consumed in energy sector which place heavy pressure on forests resources. The demand for wood product
is expected to increase with economic growth and a rapidly increasingly population. Consumption of round
wood depends mostly on sawing efficiency thus high efficiency less round wood required to produce sawn
wood.
Rwanda is a grossly importer of wood products in general, an issue which has driven up the cost of wood for
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processing. Sawn wood is used in general construction, roofing and joinery etc. However alternative materials
such as expensive steel trusses, metal window frames, and imported plywood are frequently used in Kigali in
situations where cheaper sawn wood would normally be used in other countries. This is an indication that
supply of sawn wood is limited.
A proportion of sawn wood used never enters the market as it originates from large trees on farms and is
sawn and utilized locally. Sawn wood consumption in Rwanda is currently estimated at 100,000 m3 per year,
of which 90% is soft wood grown in Rwanda and 10% is hard wood imported from DRC (LTS international
2010).
The demand in wood is higher than the supply as the production from pit sawyers does not sustain secondary
processers (furniture and joinery consumption), unless supplemented with imports.
Unmanaged plantation-as the existing plantation have not been efficiently managed and most silvicultural
operation (pruning, thinning) neglected, the quality of the raw material has deteriorated accordingly; thus the
sawn wood produced is of low quality with knotty defects. The management strategies need to be closely
linked to market expectation.
Another issue regarding the quality of raw material from Rwanda is lack of accuracy in timber dimensions and
great variability of dimensions. The forestry in Rwanda was long time not business oriented and hence looked
as neglect sector to contribute to the development of the country.
Lack of drying and proper storage affects mostly the quality of raw materials; there are no serious measures
for wood timber supply (pit sawyer) and smaller sawyer in the rural areas. Different timbers are being wasted
due to drying defects and in some cases attack of fungi during storage/drying.
b) Timber supply in Rwanda
The observation on local market permitted to identify the different timber that are found there and their prices
as indicated by the table below:
24
Table 4 : Different types of timber found on Rwandan market
Local name Scientific name Origin Dimensions of (L*W*H) in cm Price
p.p.(RWF)
Eucalyptus Eucalyptus spp Rwanda 400*15*5 3000
Cypress Cupressus Lusithanica Rwanda 200*20*3 2000
Cedrela Cedrelaserrata Rwanda 200*15*4/ 200*15*2 2500/1800
Pine Pinus Patula, radiate, Rwanda 400*15*6.5/ 200*23*3 4500/ 1500
Grevillea Grevillea robusta Rwanda 400*15*5/ 400*18*2.5 2200/ 1500
Umusave Markhamialutea Congo 200*18*3/ 200*15*5 2500/ 3000
Muvura Congo 400*27*9 52000
African mahogany/
Libuyu
Entandrophragma Congo 400*27*9 46000
Source: MINICOM Survey, July 2013
c) Engineered wood
Engineered wood, also called composite wood, man-made wood or manufactured board includes a range of
derivative wood products which are manufactured by binding the strands, particles, fibbers or veneers of wood
together with adhesives to form composite materials. These products are engineered to precise design
specifications which are tested to meet national or international standards. Engineered wood products are used
in a variety of applications, from home construction to commercial buildings to industrial products. The products
can be used for joists and beams that replace steel in many building projects.
These kinds of raw materials are essential for different quality of carpentry and joinery work. Unfortunately in
Rwanda no company or industry producing these raw materials hence importation is only one way to get them.
The dependence on imports mainly from Europe for these modern raw materials of crucial use in carpentry
and joinery project; increase the price and in some cases lack of good furniture that relies on use of
engineered wood as raw material.
d) Fittings, accessories, varnishes, mounting and other materials
These are the raw material that are used to fasten and increase the quality of furniture or another
woodworking project. They are used on different furniture and in different stages of assembly and finishing.
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1. Fittings, accessories, varnishes, mounting and other materials from Rwanda.
Varnishes are being produced in Rwanda, but not for every purpose and in each
quality. Fittings are made by hand in low quality.
2. Fittings, accessories, varnishes, mounting and other materials from abroad. Imported
fittings and mounting materials are available in Rwanda, often in low quality and many
of them are coming from china.
2.8. Raw and prefabricate material from neighbouring countries
Imported wood species from DRC include Libuyu, Muvula and Markhamia Luttea. The supply of Congolese
timber is critical because the forest management is actually not being done in a legal and ecologically sound
way. Timbers from Congo are generally good but their availability is irregular. International standards for
forest products exploitation is neither established nor respected in timber exploitation from Congo.
MDF (Middle Density Fiberboard) is being imported from South Africa via Kenya. They are of good quality but
very expensive. Plywood is being imported from Uganda, Kenya and china. The hardware/ironmongery
equipment is almost imported from china and their quality is still low.
2.9. Products produced in Rwanda
Because of its resource and labour intensity the wood furniture sector presents an opportunity for developing
countries and their firms to participate effectively in the global economy. The harmonized System of product
classification distinguishes four wood furniture product groups (WFP),namely a) office furniture, b) kitchen
furniture, c) bedroom furniture, and d) Dining/living and shop furniture.
The following table includes additional to the international furniture classification wood products made in
Rwanda:
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Table 5 : Classification of wood products made in Rwanda
Classification for wood Products made in Rwanda Category & Description
1. Office furniture Office desk SW (Solid Wood) product in combination with
plywood.
2. Kitchen furniture Simple table SW
Kitchen cabinet SW product in combination with plywood 2/2 without
quality veneer
3. Bedroom furniture Beds SW product in combination with plywood 2/2 without
quality veneer Wardrobe
4. Dining/living furniture
Dining chairs and tables SW product
Living room chairs SW painted product
Cupboards SW product in combination with plywood 2/2 without
quality veneer
Shelves SW product in combination with plywood 2/2 without
quality veneer
Upholstered furniture SW painted product
5. Shop furniture Cupboards & shelves SW painted products
6. Wooden components Inside doors Inside imported plywood 2/2 without quality veneer
Outside doors SW with basic treatment
Windows SW with basic treatment
Ceiling Basic treated wooden frame with plywood filling
(painted or natural)
Stairs SW with basic treatment
Railing Solid (turned) wood with basic treatment
7. Construction Support Scaffolding Untreated Eucalyptus roots
Beam/shoring Untreated Eucalyptus roots
Bridges Untreated SW
Hidden roof frame Basic treated SW
Formwork Untreated SW (Grevillea)
8. Wooden prefabricated Groove and tongue planks SW with advanced wood processing and finishing
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Classification for wood Products made in Rwanda Category & Description
parts
9. Wooden furniture parts Modern student chairs fixed on
metal stands
Plywood with advanced treatment
10. Others School desks SW with basic treatment
Brooms and brushes SW with basic/ natural appearance
Different kind of boxes SW with basic treatment
Coffins SW with basic treatment
Tools for construction SW with basic treatment
Source: MINICOM Survey, July 2013
The furniture actually produced in Rwanda is not competitive to international standards according to ISO /TC
136 Furniture and not produced according to basic health and personal security standards as well as
sustainable Forest standards. Weakness in processing, cutting, joining, gluing, fitting, smoothing, final finishing
and appropriate storing of finished products does not allow Rwandan products to be sold for higher prices or
be used for export.
2.10. Woodworking value chain functions
Woodworking industry holds a high potential to generate income to processors as well as contributing to the
country economy. Yet Woodworkers get revenue from their business but weaknesses are observed through
the whole value chain:
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Figure 2: Woodworking value chain functions
Source: MINICOM Survey, July 2013
Woodcluster
- identified
weakness areas-
Forest Plantation/ Felling/ Sawmilling
Drying & Seasoning
Transport
Workshop layout Machinery & Equipment
Fixing & manufacture hardware
Joinery & Furniture
manufacture
Education program
Market & show room
Quality logistics/ inspection
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2.10.1. Forestry plantation
Rwanda forests are categorized into natural and plantation forests. The natural forests are Congo Nile Ridge
comprised with Nyungwe national park Gishwati, and Mukura; Volcanoes national park; natural forests in the
savannah and gallery-forest of Akagera national park and remnants of gallery-forests and savannahs of the
Eastern Province. The forest plantations are dominated by exotic species (Eucalyptus sp, Pinus sp, Grevillea
robusta) and trees scattered on farmlands (agroforestry) and along anti-erosion ditches.
Rwanda has a total land area of 2.6338 million hectares, of which the total forested area is about 684,788
hectares, which is about 26% of total area. Rwanda has both protected natural forests with estimate of
257,500 hectares and manmade forests of 402,851 hectares of the total forested area which provide raw
material for the country wood- based industry. Rwanda has various species that can provide desired
categories of timber both hardwood and softwood. The dominant species planted in Rwanda are, by far,
Eucalyptus ssp. which account almost 64%, followed by Pines spp. Other species such as Acacia spp.,
Casuarina spp. And Cypressus spp. are less commonly found. Rwanda has a long tradition of agro-forestry.
The most commonly planted species are Grevirea robusta, Leucaena spp. Calliandra calothyrsus and
Sesbania sp. According to the data obtained from recent survey showed that the demand in wood is higher
than the supply and production from pit sawyers is insufficient to sustain the furniture and joinery consumption,
unless supplemented with imports. The total area of Eucalyptus was estimated to be 102,744 ha of which
39,204 was coppice or young plantations and the balance was older stands.
The other significant plantations species is Pines spp. amounting to 12,071 ha. The table below shows the
area covered and production of the two dominant species in Rwanda.
Table 6: Annual plantation production (m³)
Species Area(ha) Annual production(m³) Eucalyptus
Pines
102,744
12071
706,160
157,768
Total 114,815 863,927
Source: ISAR inventory report, 2012.
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The forest plantations are mostly owned by private individuals who have not enough knowledge about
standard forest management practices. The forest maintenance practices are not observed. That leads to
highly reduced quality and quantity of forest products.
2.10.2. Felling
Felling is traditional with hand tools and lead to low quality and productivity. The usage of mobile modern
cutting machine will help in improving the felling of trees which has an impact on end product.
2.10.3. Sawmilling
The conversion of timber to sawn wood is done by pitsawyers which are formally and informally organized into
three categories i.e. cooperatives, self-formed associations and individuals. The most common species used
by the sawyers are Eucalyptus, Pines, Cypress and Grevillea. As processing efficiency is of crucial importance
in a country with a limited resource base sawing efficiency was very low with a figure of around 20% to 30%
from round volume to sawnwood product. The low efficiency is the result of the; relatively small size of logs,
limited technological input, the sawing to standard length regardless of log characteristics (taper) and the use
of hand technology without any aids to ensure quality. Much of the wood used in final products is of relatively
low quality as the handling and conversion process is inefficient which lead to considerable degradation hence
low quality end product.
2.10.4. Transport
Many forest plantations are in highlands parts of the country inaccessible to the road. The transport of timber
is expensive as sometimes it is made by men; in some areas the roads are not very good and far from the
woodworking workshops which most of them are located in Kigali.
2.10.5. Drying and seasoning
For producing quality products timbers need to be dry enough. The usage of humid timber causes the
produced equipment to bend after a short time. Most of the producers do not take time to dry timber due to
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lack of sufficient capital to get enough stock and they use timber as soon as acquired and those who try to dry
timber do not apply appropriate technology.
2.10.6. Machinery
There is a lack of modern woodworking equipment (Stationary, half stationary equipment and hand tools) and
even the existing ones are poorly installed. Their maintenance is almost not effective with no professional
sharpening service.
2.10.7. Joinery/furniture manufacture
The current main weakness is the method of production of timber joint soft board materials. This exercise
takes too much time because of lack of experience and necessary equipment. Different assembled-led,
connected boards are not exactly in one line; some boards stick out. Assembly and finishing are quantity
oriented rather than quality oriented.
2.10.8. Workshop layout
The workshop layout holds many hindrances whereby buildings are missing foundation and floor; lack of
waste management (sawdust, chips, trims...) strategy; lack of space for timber storage and poor stacking
methods which lead to waste of many timbers; exhaustion system missing in most of wood enterprises and
has a crucial health effects on wood workers; installation and use of machines not according to the
international health and safety regulations.
2.10.9. Education program
The number of specialized knowledge and trained manpower in wood technology is still very low. But also
qualified trainers in carpentry and wood technology are not enough. The GoR is putting many efforts in TVET
schools but the degree of interest from youth to technical schools is still low.
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2.10.10. Summary of weaknesses
Stage Weaknesses
Forestry plantation Forest plantations are not business oriented. Lacks of planning,
maintenance, dominance of one species, poor exploitation method are of
crucial effects.
Felling Felling is traditional with hand tools and lead to low quality and
productivity.
Sawmilling Very traditional based with saw handed by two people. Great
variability of timber dimensions.
Transport Is expensive and many forest plantations are in the mountain parts of the
country inaccessible to the road.
Drying and seasoning Lack of Kiln drying and air drying is not done in good way (stacking,
foundation and sheeting)
Machinery Low productivity quality due to unskilled workers, poor installation and
maintenance of the machines.
Very old machines and of traditional models.
Lack of modern woodworking equipment (Stationary, half stationary
equipment and hand tools).
Joinery/furniture manufacture The current main weak point is the method of fabrication the timber joint
soft board materials. This practice takes too much time because of lack of
experience and the necessary equipment. Different assembled-led,
connected boards are not exactly in one line; some boards stick out.
Assembly and finishing are quantity oriented rather than quality oriented
Workshop layout The current main weak points are the buildings, the missing foundation,
and the missing floor.
Lack of waste management (sawdust, chips, trims...) strategy.
Lack of space for timber storage and poor stacking methods which
lead to waste of many timbers.
Exhaustion system is missing in most of wood enterprises and has a
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Stage Weaknesses
crucial health effects on wood workers.
Installation and use of machines not according to the international
health and safety regulations.
Fixing material/hardware Rely on importation, low quality, and expensive
Quality logistics/inspection The lack of quality inspection and standards.
Show room Lack of show room for many enterprises
Market Marketing of Rwanda furniture is still low and the quality need to be
increased to compete foreigner products.
Education The number of specialized knowledge and trained manpower in wood
technology is still very low. But also qualified trainers in carpentry and
wood technology are not enough.
3. PESTLE ANALYSIS
3.1. Political context
Rwanda is a landlocked country in the Great Lakes region of East Africa covering 26,338 square kilometers of
land and roughly 1,400 square kilometers covered by water.
The GoR of Rwanda has defined different strategies, put in place laws and regulations which favour investors,
protects the environment and increase the forest covering the country. Some of them are the Constitution of
Rwanda, the National Forestry Strategic Plan, the GoR flagship programs of Vision 2020, the Economic
Development and Poverty Reduction Strategy (EDPRS) 1 and 2, the Environment and Natural Resources
Sector Strategic Plan (ENRSSP), the National Forestry Policy and other sector policies.
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(1) Vision 2020
Vision 2020 recognizes that the major problem in the field of environmental protection in Rwanda is the
imbalance between the population and the natural resources. This leads to alarming degradation observed
through massive deforestation, depletion of bio-diversity, erosion and landslides, pollution of waterways and
degradation of fragile ecosystems.
The vision 2020 further argues that wood is the source of energy for 99% of the population, which leads to
massive deforestation and soil destruction. Thus, the vision recommends diversification of energy sources and
making them accessible to the population so as to ease the pressure on biomass.
It therefore targets the share of wood energy in the national energy balance to drop from 94% in 2000 to 50%
by 2020.
The vision 2020 further sets the target for the forest cover to reach 30% of the national land area by year 2020
and the protection rate against erosion to rise from 20% in 2000 to 90% by 2020.
(2) Economic Development and Poverty Reduction Strategy (EDPRS) I & II
The Rwanda’s EDPRS I for the period of 2008-2012 prioritizes forestry as a strategic sector for public
intervention to limit natural resources degradation. Accordingly, EDPRS I recommends to the Forestry Sector
a design and implementation of a reforestation strategy with diverse species, an inventory and mapping of
national forest resources to provide the basis for a ten year national forestry plan and a joint strategy with
MINAGRI to promote agro forestry for non-wood uses, including medicinal uses, honey production, wild foods
and handicraft production.
The EDPRS I further proposes increase of forests and agro forestry covering from 20 (2006/7) to 23.5%
(2012) of total surface land area (this is equivalent to an increment of 89,583 ha), reduction of annual wood
consumption by 30% from 2002 figure, rehabilitation of degraded ecosystems such as Gishwati and Mukura
by 80%, intensification of agro forestry up to 85% of farmlands and development of a strategy for involving the
private sector in forest management. The forest strategic plan comes in to draw the road map for the Forestry
sector to achieve these objectives of EDPRS I.
The EDPRS II prioritizes also the trees planting. Sourcing of wood for fuel will be improved. Sources of
biomass will be supported and regulated to ensure a sustainable supply of wood. High yielding trees such as
eucalyptus will be planted in areas with no competing productive land to provide wood fuel and charcoal.
Working together, MININFRA and MINIRENA will ensure that there is an equitable balance between forest
35
protection and wood supply. Rural communities will be supported in wood production through training and
workshops in seed handling, tree nursery management, forest harvesting, wood processing and timber drying
and forest extension.
(3) Taxation and investment promotion incentives
The taxation system of Rwanda stipulates incentives to Investors. Those incentives include:
- Investment allowance: The article 26 of the law Nº 16/2005 of 18/08/2005 on direct taxes on income
as modified and complemented to date provides an investment allowance of forty percent (40%) of the
invested amount in new or used assets.
- Registered investor are entitled to a profit tax discount of 2 to 7% if he/she employs between one
hundred (100) and two hundred (200) Rwandans and nine hundred (900) Rwandans respectively.
- Tax discounts: If a taxpayer exports commodities or services that bring to the country between three
million (3,000,000) US dollars and five million (5,000,000) US dollars in a tax period, he/she is entitled
to a tax discount of three percent (3%). That discount can reach 5% if exports bring to the country
more than five million (5,000,000) US dollars in a tax period.
Furthermore, the Priority 3 of EDPRS II is to transform the private sector by increasing investment in priority
sectors. This will be done through:
- strengthening the investment process to pro-actively target large foreign investors in priority sectors of
the economy;
- Accelerating structural changes in the financial sector, in particular measures to increase long-term
savings, with the objective of increasing credit to the private sector to 30% of GDP by 2017;
- Significantly strengthening the business environment through tax and regulatory reform to spur
medium and large enterprise growth and attract large investors.
The New Investment Code with a robust package of incentives for investors that is under development will
also be finalised, advertised and implemented during the EDPRS II period.
Options to be considered under the new Investment Code include fiscal incentives with a sector or geographic
focus, fiscal or alternative incentives for exporters, incentives around capital gains and dividend taxation, and
other incentives to encourage firms to establish their international or regional headquarters in Kigali.
The Investment Code will ensure that domestic firms are not at a disadvantage when competing in the market.
36
(4) Environment and Natural Resources Sector Plan
The Environment and Natural Resources Sector Strategic Plan (ENRSSP) was approved in June 2009. Its
implementation will ensure that a sustainable use of environment goods and services, and rational utilization of
natural resources contribute to national economic growth. The ENRSSP advocates sustainable management
of forest and biomass resources to meet the growing multiple needs for food, fibber, fodder, fuel, as well as
environmental services. The elaboration of this forestry strategic plan tunes well with the implementation of the
ENRSSP. The forest cover which is actually 24.5% is projected to reach 30% by the year 2020.
(5) National Forestry Policy and Forest Law The first written national forest policy was published in 2004. Due to rapid socio-economic and political
changes that occurred since then, the national forest policy has recently been revised to meet the new
challenges facing the forest sector (MINIFOM, 2010). At global level, new developments in effort to mitigate
and to adapt to global warming also call for new interest in forests as carbon sink in addition to their traditional
ecological and economic roles. The revised version of the national forestry policy is almost finished and
expected to come out soon with the new forest law.
The National Forestry Strategy builds on this revised National Forestry Policy which has 14 guiding principles.
These principles are general strategies that will also guide the implementation of this strategic plan and
include:
Sustainable Forest Management (SFM): to manage all forest and tree resources to yield sustainable
streams of social, economic and ecological goods and services on other forestry needs of the current
generation without compromising similar rights of future generations.
Commercialization of Forestry Operations: to carry out forestry operations in a business-manner,
with clear focus on result-based management. Thus, the private sector will be invited and facilitated to
invest in wood processing and value-addition in all mature forest plantations.
Species diversification: to use a wide range of tree species in reforestation programs on the basis of
species matching to site.
Agro forestry technologies: to promote on-farm forestry using multi-purpose fertilizer tree species
due to land shortage for extensive forest plantations.
Ecologically and physically fragile areas: to manage such areas with special care in order to
conserve the biodiversity therein and to protect areas prone to soil erosion and landslides.
37
Forestry research: to take key forest management decisions based on fundamentals of forestry
science and adequate research.
Stakeholder involvement and partnerships: to involve all key stakeholders in forestry at various
levels (national, district and community) in decision-making.
Forest management planning: to manage forests in accordance with approved management plans to
achieve well defined objectives irrespective of ownership.
Private sector involvement: to promote a systematic phasing in of the private sector to play leading
role in forest management and processing of forest products, leaving the public sector only the
regulatory function, research and quality assurance.
Decentralized governance: to manage all state forests in accordance with decentralized governance
prevailing in Rwanda through “Performance Contracts”.
Forests as public good: to manage all forests to serve a common good interest irrespective of
ownership because of the multiple roles of forests. Therefore, any action taken in any forest will be
regulated to safeguard that public interest.
Livelihoods enhancement: all strategies and interventions in the forest sector must be geared
towards improvement of livelihoods and fighting poverty.
Gender and equity: to integrate assenting actions in all forest management plans to redress gender
inequalities and disadvantaged groups.
International Obligations: to internalize current and future international conventions, agreements and
protocols related to forestry in all strategies and interventions in the forest sector.
(6) NIP and NES
The Rwanda’s National Industrial Policy (NIP) and the National Export Strategy (NES) set a framework for
diversifying Rwanda’s industrial base. The main goal of the NIP policy is to build local production for local
consumption and export markets. In the short term, government assistance is envisioned to improve the
feasibility of existing industries (such as coffee and tea) and sectors that have been deemed feasible (such as
Agro-processing). The medium term goal is to promote new sectors as they become feasible and the long-
term goal to reduce support to successful sectors, shifting support to new sectors.
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3.2. Economical context
Rwanda is experiencing one of the most exciting and fastest periods of growth and socio-economic progress
in its history. It was the tenth fastest growing economy in the world during the decade from 2000. At the same
time more than a million people have been lifted out of poverty. Population growth is stabilising and the
country is making great strides towards achieving the MDGs and middle income status (EDPRS II).
As economic transformation happens, GDP growth is projected in the EDPRS II to accelerate from 7.5% in
2013 to 12.2% in 2017, and averages 10.2 % over 2013-17. Per capita GDP is forecast to reach USD 1,000 by
the end of the EDPRS II period. Exports Growth of 28% p.a. is projected and the wood sector has to contribute
a lot to achieve that target.
3.3. Social and cultural context
Rwanda’s population is 10,537,222 (NISR 2012 census). More than 55% of the population is aged between 15
and 64 years which means that it is a young population. The current population growth rate is estimated at 3.5
percent per year while the population density is the highest in Africa, at 350 people per square kilometer, 3
and more than 450 people per square kilometer of arable land. The population growth is a threat to forestation
of the country.
A nationwide program to mainstream Gender in all national development programs and activities was initiated
by the GoR. The change that Rwanda wanted concerning promoting and empowering women was firstly
manifested in the new Constitution (2003) which stipulated that women should constitute 30% in all leadership
positions in the country, and the establishment of the National Women Council (CNF). Rwanda is the first
country in the World with the highest number of Women in Parliament with 64% of women in recent elections
of September 2013. However, the number of women in woodworking activities is still very low.
The GoR has inititiated a program of Education for all whereby all children have access to free 12 years
education; that is primary and secondary school. The number of students attending technical schools is still
low, especially the women. Fortunately, the Government is increasing the investment in TVET Schools and the
number of students attending TVET to reach 60% by 2017.
39
EDPRS II is committed at developing skills and Attitudes by reviewing and reforming national education
curricula, establishing Sector Skills Councils, strengthening TVET, internships, promoting adult literacy and
short course basic skills training, a tripartite funding system for on-the-job training, and a youth
entrepreneurship mentoring programme.
3.4. Technological context and infrastructure
The GoR is developing a knowledge based economy. The ICT is at the priorities of the country. “ICT sector
has a key cross-cutting role to play in supporting businesses, skills, and public service delivery. Development
of ICT capacity will be essential for reaching the Vision 2020 goal of transforming Rwanda into a knowledge-
based economy” (EDPRS II).
The road infrastructures are being highly developed. All the main towns of the country are joined by tarmac
roads. Other secondary roads are in good conditions, even if not tarmac.
There will be relevant regional integration issues for each sector within EDPRS II. Transport policy will deal
with regional projects concerning roads, rail, water and air transport. A railway joining Kigali to Mombasa is
planned also.
Electricity is still an issue. The cost is high and access low, but priority number one. The outcome one of
EDPRS II is “increased electricity generation capacity to 563 MW, leveraging large-scale private sector
investment”.
The promotion of technology with a focus on accelerating innovation by internet and mobile phone
infrastructure and improving ICT skills is among the priorities of EDPRS II.
3.5. Legal context
The GoR is committed to facilitate the business environment. That is done through investment and taxation
system of the Country.
We can note other laws related to forest and environment:
- Law No 16/2006 of 03/04/2006 determining the organization, functioning and mission of REMA
- Law N°26 of 25/06/2012 ( Official Gazette determining the organization, functioning and mission of
the National Fund for Environment (FONERWA)
40
- The National Forestry Policy, 2010
- Loi N° 47/1988 portant Organisation du régime Forestier
- Ministerial Instruction No 01024/Minifom/2010 implementing the Law on Forestry
- Law governing the professions of architecture and engineering and establishing the institute of
architects and the institute of engineers in Rwanda
3.6. Physical environment
Rwanda has an area of 26,338 square kilometres. The entire country is at a high altitude: the lowest point is
the Rusizi River at 950 metres above sea level. Rwanda is located in Central/Eastern Africa, and is bordered
by the Democratic Republic of the Congo to the west, Uganda to the north, Tanzania to the east, and Burundi
to the south. It lies a few degrees south of the equator and is landlocked. The capital, Kigali, is located near
the centre of Rwanda.
The country has a very high determination on environment protection. It has created an institution called
REMA (Rwanda Environment Management Authority) which is mandated to facilitate coordination and
oversight of the implementation of national environmental policy and the subsequent legislation.
Rwanda has achieved a significant milestone as one of the few countries in the world to develop a national
climate change and environment fund (FONERWA).
4. STATUS OF THE WOOD CLUSTER IN RWANDA
The survey conducted in all Districts of Rwanda has shown that the woodworking industry counts 3 177 units
employing 8 590 people. The results from the survey, the visits made to workshops as well as desk study
allowed the identification of challenges that face the cluster.
4.1. Challenges of the wood value chain in Rwanda
The wood value chain of Rwanda is still facing some challenges that follow:
41
Low quality of products
Most of the respondents (81%) stressed that they use to buy wood products made locally. The most important
reason is that they are low price but of quality as indicated by the chart below. Only 1% admitted that the
Rwandan products are good in quality.
The users (Private companies, public institutions, individuals) of wood products expressed the inefficiencies of
wood products from Rwanda as follows:
- Not well turned out (elegant)
- Lack of precision
- Lack of innovation
- Bad finishing
- Not very clean
- Easily bending due to much humidity in timbers
- Poor quality of timbers
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
low price Durable Good quality Made locally
77.3%
8.2%
1.0% 2.1%
42
On the other side, those who prefer or use to buy products from abroad pledged the quality and good
appearance, cleanness, durable and even of low price some times. That is shown by the following chart:
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%29.4%
8.4%
11.2% 8.9% 8.9%
7.5%
10.7% 9.3%
5.6%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Low price
Durable
Clean
just fabricated from ootside the country
good in appearance
Other
19.6%
28.3%
28.3%
2.2%
17.4%
4.3%
43
No efficiently use of resources
Due to the deficiencies in skills and machines the very limited wood resources of Rwanda and the expensive
imported timber (mostly from DRC) are not being used efficiently. There is too much waste which on its part
could be used more economically as well (mainly for energy).
The volume of round wood or the area of plantation required meet this level of sawn wood demand, depends
very much on the efficiency of conversion from round wood to sawn wood. Three conversion efficiency
scenarios are shown in figure 2 below - 18%, 30% and 45%. All sawn wood in the market at present is pit-
sawn which typically has low conversion efficiency, assumed to be 18%. At this level, 100 m³ of round wood is
required to produce 18 m³ of sawn wood. Efficiencies 45% can readily be achieved by a small to medium sized
sawmill with output of 50 – 100,000 m³ per year, using modern equipment. Up to 70% efficiency is possible in
larger modern sawmills but there is no scope for this scale of sawmill in Rwanda due to the size of the
resource (LTS International Ltd, 2010).
Insufficient capital for wood workers
80% of wood workers expressed that they have insufficient capital to invest in their activities. This is a very
important issue for them. They finance their activities using Owner’s capital, Cooperative loan, bank loan, etc,
shown by the chart below
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0% 60.1%
3.9%
21.6%
5.9% 5.2% 3.3%
44
Most of the wood workers rely on advance payment for buying timber and other materials to produce furniture
and other products for customers. This cannot allow to dry timber sufficiently and produce quality products.
Limited ability to improve technology
Most of equipments used in the wood processing sectors are obsoletes, making it impossible to manufacture
products with international and industrial standards; hence the quality of products is very low fitting to domestic
market only.
Lack of important equipment
Even the most developed enterprises are usually missing some important machines to produce a quality
products competitive on markets full of imported other products (mainly coming from China and neighbouring
countries like Kenya and Uganda).
These machines are not produced in Rwanda, neither are they high quality tools for sawing, drilling, planning,
sanding and coating. This is confirmed by the survey whereby 54% agreed that they have a challenge of
lacking modern machines.
Concerning the kinds of tools that dominate in production cycle, the chart below shows that most of wood
workshops are dominated by hand tools and half stationary equipment:
45
Professional sharpening service
A professional sharpening service for high quality tools and saw blades is missing. Fittings, screws, varnishes and
other additional materials offered in the country are mostly of low quality.
Inadequate skilled workers force-
There is lack of well-trained technicians to provide excellent services through their technical knowledge
and experience. 80% of survey respondents stressed that workers are not skilled enough to produce
furniture to compete with imports. The solutions proposed are practical trainings, study tours, theory
trainings and setting up quality standards as shown by the following chart.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Stationaryequipment
Half stationary EQ Hand tools withoutelectricity
18.8%
27.8%
53.5%
46
Inadequate skilled leaders for enterprises
The leadership for successful development of enterprises is lacking. Additional trainings for skills
development especially in enterprise management were requested.
Lack of technological and managerial skills
The Survey respondents expressed a need of trainings in wood work, business plan writing, accounting,
etc as shown by the chart below:
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
39.9%
17.6%
9.2%
33.2%
Practice training withexpert
Theory training
Quality standards
Study tours
47
Lack of professional qualification for existing Wood makers, trainings and
information on new developed products in the sector
The wood working industry is dominated by people who learned by doing from their colleagues. 73.6%
of respondents from the survey confirmed that they get new ideas on products from colleagues
(duplication) and only 11.2% have participated in a wood working training.
Poor technical training and lack of specialized teachers
Providing vocational training for this branch is a big need. The few existing schools are lacking the
necessary machines and hence the theory is more focused rather than practice.
Insufficient and high costs of electricity
The electricity power is still insufficient and the cost is high. 82% of the respondents expressed that they
face a problem of regular power interruption.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0% 30.7%
16.4% 16.1% 15.8%
15.5%
4.3% 1.2%
Skills in wood work To write bankable business plans
Creativity and new ideas Market prospection
In accounting Skills about forestry
Others
48
Declining forest resources
The high demand for wood products due to the increase in population has induced high pressure on
forest resources to the extent that some favoured timber species have become scarce while others have
become extinct in certain ecological zones. Less erused species may provide additional opportunity, but
there is limited knowledge on their properties and utilization in the major consumer market.
Unmanaged plantation
As the existing plantations have not been efficiently managed and most silvicultural operation (pruning,
thinning) neglected, the quality of the raw material has deteriorated accordingly thus the sawn wood
produced is of low quality with knotty defects. The management strategies need to be closely linked to
market expectation.
Inefficient timber utilization (conversion)
There is inefficient timber utilization and timber exploitations have not only caused shortages but have
also resulted in serious environmental degradation. It is therefore necessary to develop a technology that
will ensure faster growth and efficient wood conversion techniques and long-term durability of wood in
use.
6.7%
82.2%
4.4% 2.2% 4.4%
Low voltageRegulat interruptionPoor installationNo electricity powerOthers
49
Absence of grading and treatment standards
Undermining competitiveness of local wood products vis-à-vis imports is observed as well as limited
knowledge about quality and standards/grades that could greatly increase the value of products and the
profitability of businesses. Most of sawmill and timber dealers, deals in timber with little or no added
value (non-seasoned and non-treated timber, non-graded).
The work environment is not safe. There is lack of waste management (sawdust, chips, trims...) strategy.
Exhaustion system is missing in most of wood enterprises and has a crucial health effects on wood
workers. Installation and use of machines not according to the international health and safety regulations
is observed.
Absence of a engineered wood producer in the country
There is no single company in Rwanda that produce engineered wood; yet it is used a lot in the country and in
neighbouring countries.
Absence of sound data or unreliable statistical data systems to support planning and
monitoring of the sector.
50
5. STRATEGIC FRAMEWORK Figure 3 : Strategies to upgrade the woodworking cluster
Woodcluster
- identified
potential areas-
Forest Plantation/ Felling/ Sawmilling
Drying & Seasoning
Transport
Workshop layout
Machinery &
Equipment
Fixing & manufacture
hardware
Joinery & Furniture
manufacture
Education program
Market & showroom
Quality logistics/ inspection
Woodcluster
- Potential improvement-
Managed forests
(plantation & harvesting)
Drying & Seasoningprofessional training
Availability and affordableengineered products
Improvement of
availability
woodworking
equipment
Potential investment areas for
technical suppliers
Introduction and
experience of applied
modern wood
technology processing
Future oriented technicaltraining & networking &
LLL
Networking
Standards of wood productcertification and woodworking
conditions
5.1. Potential products to upgrade the Wood cluster
(1) Engineered wood: According to the World Bank Report (2004) there are around 4325 enterprises in
the field of wood working in Rwanda. Most of them surely are small joiner workshops in the countryside
providing services to the local market. But some bigger enterprises in Kigali and in other cities are
participating in the recent economic growth of the country and facing competition from foreigners.
Different furniture are produced in different dimensions and design, but because of the lack of updated
technologies in wood industry there is no industry in Rwanda that produces engineered. One important
step for improvement of the whole Rwandan wood industry/ wood cluster would be the setup of a
company that could process wooden waste and provide engineered wood. The lack of such industry
leads to gaps in the production capacity and to high prices for imported engineered wood and even
higher prices for the final products.
51
Examples for Engineered Wood, Manufactured boards and Panel products
Veneer plywood
Core plywood
Chipboard
Oriented strand board(OSB)
Fiber building boards
Plasterboards
Laminated plastics (decorative laminates)
(2) Boosting existing products by using engineered wood products, improving the construction, finishing
procedure and promote products in a new way.
(3) Parallel strand lumber (PSL) consists of long veneer strands laid in parallel formation and bonded
together with an adhesive to form the finished structural section. A strong, consistent material, it has a
high load carrying ability and is resistant to seasoning stresses so it is well suited for use as beams and
columns for post and beam construction, and for beams, headers, and lintels for light framing
construction.
PSL is a component of the structural composite lumber (SCL) family
of engineered wood products. PSL can be produced from small
pieces of solid wood, used for solid and resistant constructions
like tables and boards in big sizes. Besides that the use of small
wooden pieces optimizes waste management.
(4) Glued laminated timber (glulam) has greater strength and stiffness than comparable dimensional
lumber and, pound for pound, is stronger than steel. Glulam products are also a better environmental
choice than steel because they have less embodied energy. It is recommendable to calculate and to
check the use of glued laminated timber for static construction to replace metallic constructions
(5) Kitchen furniture and the demand for a modern kitchen with sustainable energy consumption
open´s new options for the wood industry, especially in the urban areas. The fast changes in urban life
PSL Board
for a
workbench
from
Eucalyptus
produced by
Rubengera
TSS/ Rwanda
52
also changes home and kitchen style. Development of different kitchen furniture kits and products
concerning Kitchen furniture according to the growing demand could improve the wood cluster.
(6) Education sector needs should be explored for need teaching and pedagogical equipment. In the
coming years the demand for school furniture will increase. The needs of schools are changing. Haptic
teaching materials will be needed in nursery, primary as well as in secondary schools. Wood and
wooden products provides the best characteristics according to educational requirements.
(7) Prefabricate products like groove and tongue planks, profiled timber or even smoothed parts or
turned wooden parts through better technical equipment can improve the wood cluster.
(8) Waste from wood working enterprises are not used whereas it contains a high raw material for fiber
board/particle board that can be produced in Rwanda and hence reduce the import at a high price. The
sawdust can be used also to make briquettes for cooking and reduce the quantity of round wood
consumption.
5.2. Areas of wood technology sector improvement in Rwanda
Improvement of the wood technology area in Rwanda will require general capacity building: a strengthening of
financial, human and technical capacity amongst all relevant wood based enterprises and industries.
Steps to upgrade the woodworking sector can be named as followed:
1. Availability and affordable engineered products: veneer technology, fiber/particle board technology
2. Availability of woodworking equipment and appropriate technology
3. Standards of wood products certification and working conditions
4. Future oriented technical training , networking and lifelong- learning
5. Introduction and experience opportunities for applied modern wood technology processing
6. Waste management.
Availability and affordable engineered products: veneer technology, fiber/particle board technology
In this technology the country should install one pilot industry to produce engineered wood to use as raw
material for domestic wood working enterprises and export for neighbouring countries. This is extremely
53
needed taking into consideration high price for imported engineered wood and its crucial use in wood working
project. It is a capital intensive project which can sustain wood working industry in Rwanda and contribute to
the global development of the country. A minimum of one company in engineered wood in Rwanda is needed
in the wood value chain.
Availability of woodworking equipment and appropriate technology
Furniture technology will focus on the use of modern woodworking tools and skills in the furniture production
cycle. By introducing modern equipment accompanied by professional training with adequate materials the
quality and quantity of production will increase within short period and the possibility of making new different
woodworking projects or to improve the existing practices will be evident.
Standards of wood products certification and working conditions
Wider market acceptability can be achieved by promoting standards of wood products certification and
labelling. Wood products and treatment standards lead to production of quality products which meet customer
standards and quality requirements.
To maintain the quality of products means also to provide skilled workers used to consider the required quality
standards.
Working conditions in Rwandan workshops related to work safety, personalized protection items, appropriate
electricity installation or workshop and equipment security are not standardized. To maintain competent and
healthy technicians, working conditions need to be secured and controlled.
Future oriented technical training, networking and lifelong learning
Promoted by MINEDUC trough Workforce development Authority (WDA), the technical training in the wood
cluster was improved in the past years and will be continuously improved in coming years to reach the goals of
vision 2020. Task driving curricula are in process of development. Six Integrated Polytechnic Regional Centers
(IPRC) were setup since 2011 aiming to support technical education development countrywide and to develop
skilled workforce. Close inter-sector collaboration and networking between Education and Infrastructure
institutions (especially on regional/ district level), government authorities and private sector will promote a
greater impact and maintain a skilled labour force.
54
In terms of continuous and lifelong learning in the wood industry, training programs should be created in
collaboration with private sector institutions, enterprises and education authorities and promoted according to
the current and future needs of experienced workers. The goal should be to update the skills of wood industry
stakeholders, development of new and improved products and processes required to venture in regional
market and to produce quality products at international standard.
Best practice: Dual integrated technical training (DITT) is a system in which theory and practice are
accomplished together by providing knowledge and skills for students, relevant for employment, self-
employment or further studies. The two elements are mutually reinforcing: theory facilitates a well-grounded
approach to practical problems while practice in turn supports theory by providing a continuous flow of real
world examples and applications. This way of technical training helps to get well skilled people in carpentry
and wood technology that in turn will improve the quality of work in different woodworking enterprises.
Qualified teachers/trainers and infrastructure facilities (Workshop and Production unit with modern stationary,
half stationary equipment and hand tools) have a crucial contribution.
Introduction and experience of applied modern wood technology processing
Owners of enterprises often know about their challenges and are open for suggestions and new ideas. This is
a very good precondition for improvement. But often the lack of ideas, experience, development options and
examples for best practice leading to sustainable and future oriented business is an important barrier for
improvement. The installation of a Community Processing Center (CPC) which is designed according to
regional needs and enterprise structure will:
1. provide a reference workshop offering needed wood updated technologies
2. provide personal consulting services in all business development in the cluster
3. offer lifelong-learning courses/ technical training courses
4. work with regional technical education institutions to boost the development of the wood cluster.
Active waste management with technology support
Due to the deficiencies in skills and machineries, the very limited wood resources of Rwanda and the
expensive imported timber (mostly from DR Congo) are not being used efficiently. There is also too much
waste which could be used more economically (mainly for energy) by using modern technical equipment in
55
waste management. An active waste management could contribute to the wood value chain promotion and to
the success of government policy on energy saving and forest conservation.
5.3. Access to finance
As mentioned above, 80% of Woodworkers have expressed that they lack sufficient finance for their activities.
This hinders the development of the cluster as producers cannot buy appropriate modern equipment and
cannot easily get enough working capital to buy sufficient timber to cover the time required for drying.
Accordingly, the GoR has promulgated a law concerning the collateral on movable items. The law could
facilitate woodworkers to get more access to bank loans, but the banks are still requiring immovable collateral
to get access to loans and Producers do not know about that law.
Experience has shown that producers gathered into cooperatives increase their relationship with banks in
terms of loan access and repayment.
Producers should be sensitized to gather themselves into cooperatives and inform about existing facilities to
access capital from financial institutions.
Wood cooperatives should be created all over the country and established in AGAKIRIRO centres. Producers
will therefore apply for loans through their cooperatives which will contribute in follow up and recovery and
access all important information easily.
5.4. Increasing market share
The Rwandan wood products have a very low stake on national and regional market, especially for big
demands. More than 8 billion Rwandan francs are used annually for wood imports in Rwanda. On the other
side exports are around nil. Woodworkers will be sensitized on participating in public tenders and public
entities will be sensitized to buy Rwandan products where possible.
Again this strategic plan proposes the opening of showrooms in Neighbouring countries to increase access to
regional market.
56
5.5. Capacity building of wood processors
Figure 4 : Proposed capacity building development structure
CPC
Administrative
staff
???
Training staff
Maintenance staff
Working staff
IPRC/ TSS
Administrative staff
???
Teacher staff
Maintenance staff
Internships
PSFRegional
Office
Consultats
As mentioned above, most of existing wood processors have not participated in formal wood making
trainings. Only 11.2% have participated in the kind of training. Others have learned from their
colleagues. That fact combined with other factors such as usage of outdated equipment explains the
low quality of Rwandan wood products.
The quality improvement and more technical skills through the whole value chain are needed and the
CPC constitute a greater way to implement this.
The CPC will contribute a lot in training existing wood processors; short technical courses will be
57
offered. Those courses will be focused on specific needs of participants; i.e. specific furniture making,
finishing, timber drying, safe operation of hand tools, etc.
In a period of 5 coming years, it is planned that the CPC will train about 600 existing wood producers in
modern technology.
The Ministry of Trade and Industry will work closely with other stakeholders in education such as
MINEDUC and WDA to improve the technical skills of existing woodworkers and bring in new young
highly skilled wood technicians
.
5.6. The creation of wood Producers cooperatives
Clustering strategy aims at gathering together producers in order to benefit from proximity production
advantages. Most of the weaknesses identified within the wood cluster can be addressed through
physical clustering of producers. Some can be mentioned such as outdated equipment, lack of enough
capital to buy raw material, lack of managerial skills, etc.
This 5 years strategy aims at gathering producers into cooperatives at District level. Agakiriro centers
which are being created in each District countrywide will only serve effectively producers unless they
are associated into cooperatives.
Wood processors cooperatives will serve vehicle all cluster collective actions. Substantial savings will
be attained by purchasing collectively needed raw materials, sharing heavy equipment, etc.
Actually it is difficult for standalone producers to supply big demand but this will be very easy for
producers in cooperatives.
It is important therefore to notice that created cooperatives will need to be well organized and trained in
leadership and cooperative management fields. Around 1500 producers, i.e. 50 Producers per district,
will be train as stipulated in this strategic plan.
Definitely cooperatives intervention will facilitate collective action, dialogue, trust and capacity building
within wood members and with other linked organizations and sectors.
58
5.7. Agakiriro Centers
AGAKIRIRO centers previously known as AGAKINJIRO are centers where many wood processors
produce and sell their products. The most commonly known is in Nyarugenge and Gasabo Districts’
Agakiriro.
One of the most important benefits of Cluster strategy is physical proximity. The physical proximity has
many advantages as producers can have access to heavy equipment that one cannot get easily, they
can have access to public infrastructure, access to finance, cluster members can negotiate bigger
market that they can execute in a group, some services such as security, accounting and others can be
shared. Agakiriro centers are a solution for the proximity issue and it is planned that they will be set in
all Districts.
5.8. Logical framework
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
To set up a CPC
The business plan for the CPC specialized in engineered wood production is elaborated
To establish the business plan of the CPC
The business plan is finalized 2013 MINICOM
The New Company is set up and registered
To organize the first General Assembly of the Company (ADARWA and APARWA members)
The first General Assembly of the company is held 2014
MINICOM, MINEDUC, Shareholders of the Company
To vote the Board of Directors of the Company The BoD is set up 2014
General assembly of the Company
To recruit the CEO of the Company and the management team
The Management team is set up 2014
General assembly of the Company
To register the company with RDB
The company is registered 2014
MINICOM, Shareholders of the Company
To set up administrative and financial procedure manual of the Company
The administrative and financial procedure manual of the company is written and approved 2014 8,000
MINICOM, Shareholders of the Company
60
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
The extension of buildings are completed
To extend buildings for accommodating the CPC
The extensions are completed 2014 224,000
Management of the company
The equipments are bought
To send orders to suppliers of the equipments
The orders of the equipments are made 2014
The management of the Company
To make payment to suppliers of equipments
The payment of equipments is made 2014 744,000
The management of the Company
To receive all the equipments and install them
The equipments are received and installed May 2014 6,000
The management of the Company
The CPC starts production To recruit the staff All the staff is recruited 2014
The Management of the CPC
To lunch the activities of the CPC
The official opening of the CPC is made May 14 3,000
MINICOM, The Management of the CPC
To extend the activities of the CPC by setting up an engineered wood factory
The land is identified and paid for
To identify the appropriate site for the CPC
The place where the factory will be located is identified and requirements for the land acquisition defined 2015
MINICOM, The management of the CPC
To negotiate the price with existing owners
The price of the land is convened with the owners of the land 2016 MINICOM
To pay for the land for construction of the The land is paid for 2016 29,648
MINICOM, Local Government, Management of
61
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
particle board and plywood production factory
the CPC
The constructions are completed
To seek for the construction permit
The construction permit is acquired 2016
Management of the company
To build the CPC The buildings are completed 2016
Management of the company
The equipments are bought
To send orders to suppliers of the equipments
The orders of the equipments are made Jan-17
The management of the Company
To make payment to suppliers of equipments
The payment of equipments is made Feb-17 1,062,141
The management of the Company
To receive all the equipments and install them
The equipments are received and instaled May-17 6,000
The management of the Company
The CPC starts production To recruit the staff All the staff is recruited 2017
The Management of the CPC
To increase access to finance for Wood workers
The Advocacy is made for banks to facilitate the financing of equipments and working capital to Wood workers
To organize a meeting with banks to sensitize them about the law number 34/2013 of 24/05/2013 on security over movable property
A meeting with Banks on the implementation of the law on security over movable property is held 2014 MINICOM
62
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
To organize a meeting with wood workers to sensitize them about the law number 34/2013 of 24/05/2013 on security over movable property
A meeting with Wood workers to make them know the law on security over movable property is held in each province 2014 600
MINICOM , Cooperatives of wood workers
To discuss with banks for finding appropriate products for financing wood workers in equipments and working capital
Appropriate products and financing scheme that suit wood workers industry are agreed with banks 2014
MINICOM , PSF,BNR, Banks
To discuss with banks for setting up mechanisms of facilitating wood workers getting loans backed by their cooperatives
An MoU between banks and Wood workers Cooperatives is signed which specify how their members may obtain loans from banks backed by their cooperatives for working capital and equipments. 2015
MINICOM , PSF, RCA and Cooperatives of wood workers
To strengthen the technical skills of existing wood processors
120 existing wood processors receive a short course in modern technologies every year (2 per
To prepare the training modules and plan for the existing wood workers
The training modules and plan for training existing wood workers are elaborated 2014 5,000
MINICOM, CPC, WDA
63
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
District)
To identify the first group of participants
The list of the first group of participants is established 2014
MINICOM, CPC, WDA
To sign an MoU with the CPC / TVTs or other Service Provider for training existing wood workers
The MoU with the CPC for training existing wood workers is signed 2014
MINICOM, CPC, WDA
To conduct the trainings for existing wood workers on modern technology in wood working
120 Existing wood workers are trained in modern technologies every year 2016 - 2019 223,794
MINICOM, CPC, WDA
To facilitate the creation of Wood workers cooperatives and to improve their leadership for the existing ones
1500 Wood workers are trained in cooperative creation and management
To prepare the training modules
The training modules are prepared 2014 5,000 MINICOM, RCA
To identify the participants in the training
A list of 1500 (50 per District) wood workers to participate in the training on cooperative management is established 2015 MINICOM, RCA
64
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
To recruit the training company
The training company is recruited 2015 MINICOM
To conduct the trainings for 1500 Wood workers on cooperative creation and management
1500 Wood workers are trained in cooperative creation and management 2015 217,500 MINICOM
To assist trainees in setting up cooperative and improving leadership of existing cooperatives
At least one wood workers cooperative is created in each District and management organ set up. 2015 99,000 MINICOM
To assist the wood workers cooperatives in designing the procedure manuals for their cooperatives
All the 30 wood working cooperatives have the procedure manual 2015 74,250 MINICOM
To create Agakiriro in every District
Agakiriro centers are set up in every District
To include in imihigo (performance contracts) of every District the creation of Agakinjiro
The creation of Agakiriro is mentioned in imihigo of every District 2014
MINALOC & Districts
65
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
To localise the site where the Agakiriro is to be built in every District
The site where the Agakiriro will be set up is decided on 2014
MINALOC& DISTRICTS
To put in the site all the required infrastructures, such as roads, electricity, etc.
All the required infrastructures are in place 2015
Districts, Wood workers
To gather the wood workers in Agakiriro in every district
The interested wood workers are grouped in Agakiriro in every district 2015
Districts and wood workers
To increase Managerial skills of wood workers
The wood workers gathered in 30 cooperatives can manage themselves their cooperatives and have gained marketing skills.
To prepare the modules on basic accounting skills, marketing, product labelling and branding.
The modules on basic accounting skills, marketing, product labelling and branding are available. 2014 5,000 MINICOM
To recruit the training company
The training company is recruited 2015 MINICOM, RCA
To conduct trainings
180 wood workers are trained in basic book keeping 2015 26,100 MINICOM, RCA
To assist the wood workers cooperatives for a couple of months
The wood workers cooperatives are coached and assisted in cooperative management 2015 26,100 MINICOM, RCA
66
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
To set up wood working Standards and products categorization
The wood working standards are set up
To establish basic health and personal security standards for wood working workshops
The basic health and personal security standards for wood working workshops are established 2015 RBS
To establish the wood products standards and categorization is set up
The wood products standards and categorization is set up 2015 RBS
To organize trainings of wood workers on wood working standards
The training on wood working standards is organized 2015 RBS
Quality of raw material The quality of timber is improved
To conduct a campaign on forests maintenance
The campaign on forests maintanance is conducted 2015 MINAGRI
The new techniques of harvesting forests using modern equipments are introduced
The new techniques of harvesting forests using modern equipments are introduced 2015
MINAGRI, MINICOM, Private investors
To increase access to modern equipments and increase their productivity
The business plans of wood workers cooperatives and companies are elaborated to acquire modern equipments
To train at least 4 people in each of the 30 wood working cooperatives on business plan elaboration
4 people in each of the 30 wood working cooperatives are trained on business plan elaboration 2016 MINICOM
67
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
To assist the 30 wood workers cooperatives to elaborate their business plan
The business plan for 30 wood working cooperatives is elaborated 2016 450,000 MINICOM
To assist the interested cooperatives among the 30 wood working cooperatives to negotiate for financing of the investment needed to improve technology
The interested cooperatives among the 30 wood working cooperatives are supported to negociate for financing of the investment needed to improve technology 2016 MINICOM
Productivity of equipments is increased
To sensitize wood workers on applying 2 shifts system to maximize the productivity of equipments
The cooperatives are sensitized on applying a two shifts system 2016 MINICOM
Increase access to national and regional market
60 members of wood workers are trained on preparing public tenders
To prepare the modules for trainings
The module for training on preparing public tenders is available 2016 MINICOM
To recruit the training company
The training company is recruited 2016 MINICOM
68
Specific objectives Expected outcomes Activities Indicators Timeframe Cost (in RWF 000 ) Responsible
To conduct trainings
60 members of wood workers are trained on preparing public tenders 2016 8,700 MINICOM
To Sensitize government institutions, local government and other stakeholders to the potential of the Rwandan wood products.
The sensitization of government institutions, local government and other stakeholders to the potential of the Rwandan wood products is made in different meetings 2016
Prime Minister Office, MINICOM
2 showrooms of Rwandan wood products are opened in neighboring countries
To look for a showroom in 2 regional countries
A showroom is rent in 2 regional countries 2017
MINICOM, Private wood cooperatives / Companies
To open showrooms in 2 regional countries
The workshop is opened in 2 regional countries 2017
MINICOM, Private wood cooperatives / Companies
Total
2,999,893
69
Annexes
The list of TVET Schools which teach carpentry in Rwanda
School name Province District Type of school
Trades Status
1 RUHUHA VTC Eastern Province BUGESERA VTC CONSTRUCTION, TAILORING, ELECTRICITY,WELDING, CARPENTRY
PUBLIC
2 NYAMATA TECHNICAL SCHOOL
Eastern Province BUGESERA TSS CONSTRUCTION, TAILORING, ELECTRICITY, COMPUTER ELECTRONICS, MECHANICS, CARPENTRY
PUBLIC
3 VTC Kirambo NORTHERN PROVINCE
Burera VTC Masonry, Carpentry , Tailoring, Private
4 JANJA VTC Northern Province GAKENKE VTC CARPENTRY, MASONARY,VET, TAILORING, ELECTRICITY, CATERING
GOVERNMENT AIDED
5 ECOLE TECHNIQUE (ETHG SOS)
KIGALI CITY Gasabo TSS Electricity, Carpentry, Computer Science, Accountancy, Electronics and telecominication
Private
6 GITUZA VTC Eastern Province GATSIBO VTC CARPENTRY, CONSTRUCTION, TAILORING
PUBLIC
7 GAKONI VTC Eastern Province GATSIBO VTC CARPENTRY, CONSTRUCTION, WELDING, TAILORING, LEATHER CRAFT
PUBLIC
70
School name Province District Type of school
Trades Status
8 COLLEGE APE GIRUBUKI
Northern Province GICUMBI TSS CARPENTRY, CONSTRUCTION PUBLIC
9 Rutare VTC NORTHERN PROVINCE
Gicumbi VTC Masonry, Carpentry, Tailoring Private
10 MUGUSA VTC Southern Province GISAGARA VTC CARPENTRY, CONSTRUCTION, WELDING,ELECTRICITY, TAILORING
PUBLIC
11 KIGEMBE VTC Southern Province GISAGARA VTC TAIROLING, CARPENTRY, MANSONRY PUBLIC
12 CFJ Save SOUTHERN PROVINCE
Gisagara VTC Masonry, Carpentry Private
13 RWABUYE VTC Southern Province HUYE VTC TAILORING, CARPENTRY, MASONARY, WELDING, CATERING, HAIRDRESSSING, ELECTRICITY
PUBLIC
14 MARABA VTC Southern Province HUYE VTC WELDING, MASONRY, TAILORING,CARPENTRY
PUBLIC
15 CFJ Kinyamakara
SOUTHERN PROVINCE
Huye VTC Masonry, Carpentry, Dressmaking Private
16 Centre des Jeunes de Rango
SOUTHERN PROVINCE
Huye VTC Masonry, Carpentry, Dressmaking Private
71
School name Province District Type of school
Trades Status
17 IPRC South Southern Province Huye IPRC VTC: Carpentry, Plumbing, Food and Beverage, Culnary Arts, Diploma Program: civil Engineering, Electrical Engineering, Electronics Engeneering and ICT
PUBLIC
18 KIGESE VTC Southern Province KAMONYI VTC CATERING, CONSTRUCTION, CARPENTRY, TAILORING
PUBLIC
19 KAYENZI VTC Southern Province KAMONYI VTC CARPENTRY, WELDING, TAILORING, ELECTRICAL, MASONRY
PUBLIC
20 CFJ Remera SOUTHERN PROVINCE
Kamonyi VTC Construction, Dressmaking, Carpentry Private
21 Kabuga VTC SOUTHERN PROVINCE
Kamonyi VTC Carpentry, Masonry, Tailoring Private
22 CFJ Muhororo WESTERN PROVINCE Karongi VTC Construction, Carpentry Private
23 Rubengera Technical Secondary School
WESTERN PROVINCE Karongi
TSS
carpentry and wood technology option
Private
24 KABARONDO VTC
Eastern Province KAYONZA VTC CARPENTRY, TAILORING, ELECTRICAL, WELDING, PLUMBING, MANSONRY
PUBLIC
72
School name Province District Type of school
Trades Status
25 CEFORMI KIGALI CITY Kicukiro VTC Welding/Metal work, Carpentry ,Electricity, Tailoring, Catering, Construction, Plumbing,
Private
26 EFPJ Kicukiro KIGALI CITY Kicukiro VTC Welding, Masonry, Carpentry Private
27 RUBIRIZI VTC KIGALI CITY Kicukiro VTC Masonry, Carpentry, Tailoring Private
28 Projet Enfant en Difficulté
KIGALI CITY Kicukiro VTC Carpentry Private
29 Centre des Jeunes de Gatenga
KIGALI CITY Kicukiro VTC Electricity, Construction, Secretarial, Tailoring, Carpentry, Welding, Agriculture
Private
30 CFM Rusumo EASTERN PROVINCE Kirehe VTC Carpentry, Mechanics Auto Private
31 KIYUMBA VTC Southern Province MUHANGA VTC TAILORING, CARPENTRY, MASONARY PUBLIC
32 Rwanda Training Center JAM
SOUTHERN PROVINCE
Muhanga VTC Carpentry, Computer, Pottery, Arts, Domestics Techniques, Agriculture and Life skills
Private
33 Centre de Formation Polytechnique de Shyira (CEFOPS)
WESTERN PROVINCE Nyabihu VTC Mechanics auto, Carpentry, Construction, Tailoring and Embroidery
Private
34 IRUBA Vocational Traning Center
EASTERN PROVINCE Nyagatare VTC Dressmaking, Welding and Carpentry Private
73
School name Province District Type of school
Trades Status
35 MWOGO VTC Southern Province NYAMAGABE VTC CARPENTRY, CONSTRUCTION, TAILORING,
PUBLIC
36 Musebeya VTC SOUTHERN PROVINCE
Nyamagabe VTC Tailoring embroidery, automobile Mechanics, Carpentry, Electricity, Construction
Private
37 Association pour la Fornmation Technique et Professionnel ( AFTP) VTC
SOUTHERN PROVINCE
Nyamagabe VTC Tailoring, Masonry, Carpentry, welding, Plumbing, Electrical
Private
38 CFJ Nkumbure SOUTHERN PROVINCE
Nyamagabe VTC Carpentry, Dressmaking Private
39 VTC Mutuntu SOUTHERN PROVINCE
Nyamagabe
VTC
carpentry and tailoring option
Private
40 TYAZO VTC Western Province NYAMASHEKE VTC WELDING, ELECTRICITY, CATERING, PLUMBING,MASONERY,TAILORING,CARPENTRY
GOVERNMENT AIDED
41 KARENGERA VTC
Western Province NYAMASHEKE VTC TAILORING, CARPENTRY, MASONARY, ELECTRICITY, CATERING, HOTEL OPERATION
GOVERNMENT AIDED
42 NTENDEZI VTC WESTERN PROVINCE Nyamasheke VTC Construction, Tailoring and Carpentry Private
74
School name Province District Type of school
Trades Status
43 NYANZA VTC Southern Province NYANZA VTC MANSONRY, TAILORING, WELDING,SCREEN PRINTING,CARPENTRY, PLUMBING
PUBLIC
44 CFJ Nyanza SOUTHERN PROVINCE
Nyanza VTC Carpentry, Dressmaking, Construction Private
45 CFP Busoro SOUTHERN PROVINCE
Nyanza VTC Welding, Tailoring , Carpentry, Masonry Private
46 NDAGO VTC Southern Province NYARUGURU VTC TAILORING, MASONARY, CARPENTRY PUBLIC
47 KIYONZA VTC Southern Province NYARUGURU VTC CARPENTRY, MANSONARY, TAILORING, HOSPITALITY & TOURISM
PUBLIC
48 Centre d'encadrement professionnel ADEPE
WESTERN PROVINCE Rubavu VTC Masonry, Welding, Hair dressing , Mechanics, Carpentry , Tailoring,
Private
49 KINAZI VTC Southern Province RUHANGO VTC ELECTRICAL, TAILORING, CARPENTRY, MASONRY
PUBLIC
50 MPANDA VTC Southern Province RUHANGO VTC MANSONRY, ELECTRICAL,TAILORING, CATERING, CARPENTRY, WELDING
PUBLIC
75
School name Province District Type of school
Trades Status
51 Vunga VTC SOUTHERN PROVINCE
Ruhango VTC Building and carpentry, Electricity and welding, Dressmaking and cooking, Tailoring
Private
52 NZUKI VTC SOUTHERN PROVINCE
Ruhango VTC Construction, Sewing embordery, Carpentry Private
53 MUHARI VTC Western Province RUSIZI VTC CONSTRUCTION, TAIROLING,WELDING, CARPENTRY, ELECTRICITY
PUBLIC
54 NYARUSHISHI VTC
Western Province RUSIZI VTC TAILORING,CARPENTRY, MASONERY PUBLIC
55 C.M.KARU Kavumu
WESTERN PROVINCE Rutsiro VTC Carpentry Private
56 RUBONA VTC Eastern Province RWAMAGANA VTC CARPENTRY, TAILORING, HOTEL MANAGEMENT, CONSTRUCTION
PUBLIC
57 CFJ Bihembe EASTERN PROVINCE Rwamagana VTC Electricity, Masonry, Carpentry, Construction, Tailoring
Private
58 ST KIZITO DE MUSHA
EASTERN PROVINCE Rwamagana TSS ICT, Construction, Agriculture, Carpentry, Masonry, Welding, Catering
Private
Source : WDA, 2013