wood products cluster strategic plan 2014 - 2019 minicom strategic plan for … · 3.6. physical...

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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

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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

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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

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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

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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

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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

http://en.wikipedia.org/wiki/Parallel_strand_lumber

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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.

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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.

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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

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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.

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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.

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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.

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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.

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- 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

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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.

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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:

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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.

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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

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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

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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

23

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.

http://en.wikipedia.org/wiki/Wood

http://en.wikipedia.org/wiki/Wood_fibre

http://en.wikipedia.org/wiki/Wood_veneer

http://en.wikipedia.org/wiki/Adhesive

http://en.wikipedia.org/wiki/Composite_material

http://en.wikipedia.org/wiki/Engineering

25

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

27

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


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


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

29

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.

30

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.

34

(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.

38

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)

http://www.rema.gov.rw/index.php?option=com_docman&task=cat_view&gid=135&Itemid=77&lang=en

http://www.rema.gov.rw/rema_doc/Laws/FONERWA.pdf



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:

http://en.wikipedia.org/wiki/List_of_countries_by_lowest_point

http://en.wikipedia.org/wiki/Rusizi_River

http://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congo

http://en.wikipedia.org/wiki/Uganda

http://en.wikipedia.org/wiki/Tanzania

http://en.wikipedia.org/wiki/Burundi

http://en.wikipedia.org/wiki/Equator

http://en.wikipedia.org/wiki/Landlocked

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

http://en.wikipedia.org/wiki/Parallel_strand_lumber

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


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


To receive all the equipments and install them

The equipments are received and installed May 2014 6,000


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


particle board and plywood production factory

the CPC

The constructions are completed

To seek for the construction permit

The construction permit is acquired 2016


To build the CPC The buildings are completed 2016


The equipments are bought

To send orders to suppliers of the equipments

The orders of the equipments are made Jan-17


To make payment to suppliers of equipments

The payment of equipments is made Feb-17 1,062,141


To receive all the equipments and install them

The equipments are received and instaled May-17 6,000


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


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


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


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


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


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


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


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


The training company is recruited 2016 MINICOM

68


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


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


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


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


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


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


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