The $5m gold refinery is located at the Kigali special economic zone and started operations in March 2019. The refinery is an initiative of Aldango, a local company that deals in minerals. The refinery has the capacity to process 6 tonnes of gold a month equivalent to 220Kg per day and will be expanded as demand increases.
According to the chairman of the company, the factory is built with the same standard as those found in Europe and Asia. The company will buy raw gold from the country and around the continent and process it into high quality finished gold. The company already has access to the international market. The country hopes that the refinery will complement its efforts in achieving a revenue target of $1.5 billion from mineral exports by 2024.
Adding value to resources in Rwanda
Even though most African countries have abundant mineral resources, they are exported raw outside the continent. As a result, the African countries experience loss in potential revenues as well as jobs. Aldango is a Rwandan based company that specialises in the metal industry.
The company realised that even though Rwanda had deposits of precious metal resources, it had no refining capabilities. Hence, it grabbed this opportunity to set-up this refinery that will now process all the gold mined in the country as well as from the surrounding countries. The company will also expand its capacity as demand increases.
Benefits of the gold refinery to Rwanda
Instead of Rwanda exporting raw metals and earning less revenues, they will now export them in processed form consequently earning much higher revenues. The plant will also provide both direct and indirect employment to the Rwandan population. Similarly, the government will also earn more tax revenues from both the company and its employees. moreover, the company has intentions to expand to processing other precious metals and further contributing towards the socio-economic development of Rwanda.
What Africa governments need to do to follow in Rwanda’s footsteps?
Firstly, the Rwandan government realized that it is the private sector that will lead the economic growth of the country. As a result, through the visionary leadership of President Kagame, he created the enabling environment that will make businesses thrive in the country. For instance, Rwanda is now ranked among the top countries in the world in ease of doing business.
Secondly, transparency in the government as demonstrated by the e-procurement portal of the country which gives suppliers and buyers confidence and transparency in procuring goods and services.
Finally, President Kagame through his political-will made sure that all the policies with regards to ease of doing business and transparency in government transactions, are followed through and executed.
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