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Senate Raises Concern Over Budget Cuts to Industrial Infrastructure

The Senate of Rwanda has raised concerns over a reduction in the national budget allocated to infrastructure development in industrial zones, warning that the move could slow Rwanda’s industrial growth and export ambitions.

The concerns were discussed on May 14, 2026, during a Senate plenary session reviewing the draft national budget for the 2026/2027 fiscal year and the medium-term expenditure framework for 2026/2027–2028/2029.

According to the Senate Committee on Economy and Finance, the budget earmarked for infrastructure in industrial parks dropped by more than Frw1.7 billion, falling from Frw8.9 billion in the revised 2025/2026 budget to Frw7.178 billion for 2026/2027.

Senators warned that the reduction could undermine Rwanda’s efforts to accelerate industrialization and increase exports under the NST2 development strategy. They noted that several industrial zones still lack essential infrastructure such as roads, electricity, water supply, and waste management systems.

The committee also highlighted complaints from manufacturers facing frequent electricity outages, which risk damaging machinery and disrupting production.

Senators emphasized that improving industrial infrastructure is critical for attracting investors, boosting exports, reducing imports, and strengthening the value of the Rwandan franc through increased foreign exchange earnings.