Rwanda: Government Cracks Down on Unused Industrial Land

The Ministry of Trade and Industry has announced that it is taking action to confiscate the land of entrepreneurs who have purchased plots in industrial zones but have failed to develop them. The decision was made in order to make these plots available to other entrepreneurs who are in need of land for industrial purposes.

Many industrial sites across the country have plots that remain undeveloped, despite being purchased by individuals who claim they intend to build industries on them.

Some of these individuals have been accused of purchasing the land as a form of investment, with the intention of selling them at a higher price in the future.

However, their contracts stipulate that the land must be used within 18 months of purchase, with repayments spread out over several years.

According to the report from the Auditor General, for 2022/2023, there is approximately Rwf 2.9 billion worth of unused land in various industrial zones. The State Minister in the Ministry of Trade and Industry, Richard Niwenshuti, explained to the PAC on May 9, 2024, that measures are being taken to reclaim this unused land and allocate it to those who will utilize it for industrial purposes.

Niwenshuti stated, “Those who do not adhere to the terms of their agreement will have the land confiscated and returned to the government. This process has already begun, with land in Rwamagana being returned in accordance with the law.”