• Unit 20: INDUSTRY IN RWANDA

    Key unit competence

    At the end of this unit, you should be able to investigate the impact of industrial growth on sustainable development.

    Introduction

    An industry is an economic activity that leads to the production of goods or services. There are three types of economic activities also referred to as industries. These are:

           • Primary activities

           • Secondary activities

           • Tertiary activities

    We refer to agriculture,mining,fishing and forestry as primary industries. This is because they involve extracting raw materials at the initial or primary stage.

                 

    In order to add value to these raw materials, they are processed in a factory. For example, maize is a primary raw material but maize flower is processed maize whose value is higher than that of maize. Processing and manufacturing are referred to as secondary industry.

    The third type of industries are the tertiary or service industries. These are the activities that make it easy for the primary and secondary industries to be carried out. Examples of tertiary industries are transport and communication, trade, insurance and banking services.

                  

    Activity 20.1

    Carry out this activity in pairs:

    For each type of industries described above,provide five examples.

                 

    In this unit, we shall study the impact of growth of secondary industries in sustainable development.

    20.1 Classification of industries

    Some industries are large scale while others are small scale.

    Large scale industries are those that require large amounts of capital to set up. They also may employ a large labour force. They use large amounts of electricity. Their final products are in large quantities.

    Large scale industries are owned by large companies or by the government. Examples of large scale industries in Rwanda are those involved in beer brewing, making of soft drinks, cigarette manufacturing and cement manufacturing.

    Activity 20.2

    In groups, use geographical documents, the Internet, photographs and local environment to categorise industries in Rwanda. Prepare a list of all the large scale and another list of small scale industries in Rwanda.

    Small scale industries are industries whose inputs and outputs are in small quantities.Such industries may be owned by an individual or by a family. Examples of such industries include shoe repairing and tailoring.

    a) Agro-based industries

    These are industries that use agricultural raw materials. Some are large scale while the others are small scale.They can be classified into two categories.

    (i)  Food processing industries: These are industries whose products are mainly for human consumption. Examples are Inyange industries, located in Masaka, Kicukiro District. It processes milk and fruit juice in different forms and flavours.It also processes drinking water.Other industries are sugar processing milk processing,tea,coffee processing and flour milling.Many of Rwanda’s industries are agricultural based because the country’s main economic activity is agriculture.

    Activity 20.3

    In pairs, make a list of crops that must undergo processing before use.

    (ii) Agricultural non-food industries: These industries use agricultural raw materials but the products are not for human consumption. They include, manufacturing of animal feeds, leather tanning, shoe making, cotton based textile industries and cigarette manufacturing.

    b) Chemical industries

    These are industries that use chemical-based raw materials and their products are not for human consumption. They make products such as paints, plastics, fertilisers, synthetics, mattresses and soap. An example is industries in Nyarugenge District which manufactures a wide range of fast moving consumer goods.

    c) Mineral-based industries

    These are industries that use minerals for raw materials. Examples are mineral crushing and refining,making of roofing materials and cement manufacturing.An example of such industries is Safintra Rwanda which manufactures roofing and steel products. Another example is Cimerwa cement factory.

                    

    d) Metal work

    These are industries in which metals are used as raw materials. In Rwanda, scrap metal is used to make wheelbarrows, cooking stoves, animal feeding troughs, metal gates and metal grills. An example is Steelrwa Industries in Eastern Province, Rwamagana District.

    e) Other industries

    Furniture and boat making which uses wood as raw materials,fish processing,fishnet making, and handicraft industry.

    20.2 Factors for location, growth and development of industries in Rwanda

    Before an industry is set up in a place, there are many things that have to be considered. These things determine whether it is appropriate to set up an industry in a given place.

    Activity 20.4

    In groups of five,carry out a study of a nearby industry.Write your report under the following subheadings:

    1.Name of the industry

    2.Reasons why the location was suitable for the industry

    3.Source of its raw materials

    4. Market for the final product

    Write down the findings for class discussion

    Location refers to the specific site of the industry.

    Remember!

    In determining the location of a factory, many factors are considered. To avoid environmental degradation, it is usually preferred in an area where waste disposal can be done easily. Such areas are also preferred to be in areas without dense vegetation. This way, the environment is taken care of even as industrialisation continues.

    There are different factors that influence location,growth and development of different industries in Rwanda. An industry may start as a small establishment but gradually expands to a large industry.

    The factors that favour location, growth and development of an industry include the following:

    a)  Availability of raw materials

    Rwanda has different types of raw materials that attract industries in different locations. There is a wide range of agricultural raw materials such as sugarcane that led to sugar production at Kabuye, milk that is processed at Inyange, tea factory at Mulindi and Rubaya.

    b)  Availability of capital

    The money required to start an industry is called capital. Sometimes, the government, companies and individuals borrow loans to set up an industry. The government is able to get loans from international donors and financial institutions like World Bank to start an industry.

    c)Availability of labour

    Rwanda has a large population and many of the people get employment in the manufacturing industries.

    d) Availability of market

    Most of the agricultural and the small scale industries in Rwanda sell their products locally. There are other industrial products which are sold outside the country. For example, the surplus of sugar from Rwanda is sold to the East African countries.

    e)  Availability of power supply

    Industries are located in areas where power is easily accessible. Power is needed to run machines in a factory.Over  60% of the industries in Rwanda are located in Kigali where power is readily available.

    f)  Government policy

    The government of Rwanda has been encouraging investors to set up industries in the country to create employment and to boost economic growth.

    g)  Availability of water

    Some industries such as those making beverages and breweries require plenty of water. The Bralirwa Breweries and Inyange industries use water as a major raw material.

    h)  Good transport and communications network

    It is necessary to have well developed means of transport to be able to move raw   materials to the factories and the finished products to the markets.It is also necessary to communicate with the producers of the raw materials and the consumers of the finished goods.

    Activity 20.5

    Study the photograph below and answer the questions that follow.

                       

    1.Describe the activity taking place in the photograph.

    2.Which industry is supplied with the raw material shown?

    3.Where in Rwanda is the photograph likely to have been taken?

    4. Explain how Rwanda benefits from the marketing of the final product.

    20.3 Importance of industries in Rwanda

    It is important for any country to do all that is possible to encourage industrial development. The government of Rwanda recognizes the importance of industrial development as a means of promoting economic growth. It is for this reason that favourable policies have been put in place to encourage investors in the sector.

    Activity 20.6

    Your teacher will organise a visit to Bralirwa Breweries. Alternatively, in groups, use the Internet and any other relevant resources to carry out a research of the Bralirwa Breweries.Find out how the industry benefits:

               i)  The government

               ii)  Farmers

               iii)  Local community

               iv)  Individual employees

    Development of industries have a number of advantages in a country: Some of these have been explained below:

    (i) Creation of employment opportunities: Industries create job opportunities enabling many people to get employment and are able to earn income to live on. There are many people in Rwanda who earn their living by working in industries.

              

    (ii)  Generating revenue for government: The government generates revenue by levying taxes to the industries. Also, if the manufactured goods are exported, the country earns foreign exchange.

    (iii)  Adding value to local products:  Processing of raw material increases the value thus earning more compared to selling the products in their raw form. For example, fruit juices sell at a higher price than whole fruits.

    (iv)  Production of export goods: Some industries produce goods that are exported to enable the country to earn foreign exchange.Rwanda exports sugar to the neighbouring countries to earn foreign currency.

    (v)  Import substitution:  Manufacturing industries supply the local people with goods at lower cost than the cost of similar imported goods. Instead of importing such items as cigarettes, soft drinks, soap and mattress, Rwanda produces the items locally. The country saves foreign exchange which could have been used in importing.

    (vi)  Development of infrastructure:  When an industry is set up at a place, other developments such as water supply, roads and electricity are provided in the area.This benefits the industry as well as the local people.This is true of such industrial complexes as in Bugarama.

    (vii)  Development of social amenities:  Industrial developments attracts development of social amenities such as schools, health centres and recreation facilities. For example, CIMERWA Cement factory has attracted many other developments in the area.

    (viii)  Controlling rural-urban migration: When industries are set up in rural areas, people get employed there instead of moving to towns in search of jobs. The Kabuye Sugar Factory is in a rural setting and has played some part in controlling rural-urban migration.

    (ix)  Creating market for raw materials: Development of agricultural oriented industries creates market for farmers. For example, the tea farmers in Rwanda are assured of market for their produce. This promotes agricultural development.

    20.4 Problems and effects of industrial development in Rwanda

    Industrial sector is very important for economic growth and social development in Rwanda. However the sector is associated with both environmental and social problems. In order to ensure sustainable development, these problems must be addressed through efficient production processes and applying preventive measures to possible problems.

    Activity 20.7

    Use geographical documents, the Internet, photographs and local environment to research on:

    i) The importance and effects of industrial development in Rwanda.

    ii) The problems of industrial development.

    iii) Possible solutions to the problems of industrial development.

    (a)  Pollution:  Industries can lead to both air and water pollution. Some industries produce chemical substances which if discharged into water bodies are harmful to the living things in the water. Therefore, waste substances from chemical industries must be treated and discharged with care to avoid pollution.

    (b)  Rural-urban migration: As more industries are set up in towns, more people move from rural areas hoping to get employment in these industries. This causes overcrowding in towns creating pressure and congestion on social amenities like health facilities.

    (c)  Over-exploitation of natural resources:  Resources such as forests are overexploited as the demand for raw materials increase. Forests like Nyungwe are endangered as people exploit timber to supply building and furniture industries.

    (d)  Displacement of people:  Development of industries creates demand for space. As a result, people are made to relocate to allow for building of a factory. This is worse in rural areas where farmers are made to give up their farms. It is also expensive for the government to compensate those whose land has been used.

    END OF UNIT REVISION EXERCISE

    1. Out line the major types of industries in Rwanda.

    2. Explain some of the factors that influence the location,growth and development of industries in Rwanda.

    3.Describe the importance of industrial development to the economy of Rwanda.

    4. Explain the problems and effects of industrial growth and development in Rwanda.

    Unit 19: POWER AND ENERGY IN RWANDAUnit 21: TRANSPORT, COMMUNICATION AND TRADE IN RWANDA