Rwanda Prepares to Launch First Metal Factory
The Ministry of Trade and Industry (MINICOM) has announced that in September 2025, Rwanda will officially open its first metal factory in Musanze District.
The project, known as A-One Iron and Steel Ltd, is in its final stages of construction inside the Musanze Industrial Park. Once completed, the factory will be the first in Rwanda to produce iron and steel directly from ore, instead of only recycling old metals.
Investment and Construction
The Musanze metal factory has been built with an investment of $20 million. The facility includes several sections such as the iron smelting plant, the processing line, and shaping areas where raw steel is transformed into usable products.
According to Christian Twahirwa, the Director of Industry and Investment at MINICOM, this factory is unique compared to others in Rwanda. While existing plants mainly recycle scrap metal, A-One Iron and Steel Ltd will process iron ore mined in Rwanda into strong, high-quality steel.
Source of Raw Materials
Rwanda has vast mineral deposits, including Rare Earth Minerals, Lithium, Uranium, Beryllium, and Iron Ore. For this project, iron ore will be extracted from mines in Rulindo District and other sites across the country.
“This will be the first time Rwanda produces steel directly from ore, rather than from recycled materials,” Twahirwa explained.
Job Creation and Economic Benefits
Once operational, the Musanze factory will create 1,000 direct jobs and more than 2,500 indirect jobs.
The plant is expected to meet over 50% of Rwanda’s steel demand, which means fewer imports and more savings on foreign currency. At the same time, Rwanda will be able to export steel products, bringing in more revenue.
This aligns with Rwanda’s industrialization policy, which focuses on:
- Reducing imports of construction materials
- Increasing exports to boost foreign exchange earnings
- Creating jobs for citizens
- Supporting other industries with locally made raw materials
- For more details on Rwanda’s industrial growth strategy, visit the official MINICOM website.
How the Factory Works
Iron Smelting Process
To extract steel from iron ore, the ore will be heated at 1,538°C. During this process, gases such as oxygen (O₂) and carbon dioxide (CO₂) will also be produced.
- Oxygen will be supplied to hospitals and industries.
- CO₂ will be sold to beverage companies and other factories.
Annual Production Capacity
The Musanze plant will produce about:
- 150,000 tons of Direct Reduced Iron (DRI) per year
- 200,000 tons of processed steel
- 150,000 tons of final steel products such as bars, rods, and construction materials
This will position Rwanda among the few African nations producing steel from ore, alongside only two other factories in East Africa.
Supporting Rwanda’s Construction Sector
Currently, Rwanda imports most of its steel, except for some fer à béton (construction bars) made locally from recycled materials. The new factory will help reduce imports by at least 50%, ensuring the construction industry has a stable supply of high-quality steel.
According to MINICOM, the project will not only cut import bills but also make Rwanda a regional steel exporter. This will increase the country’s competitiveness in East Africa’s growing construction market.
For updates on Rwanda’s economy, you can check Rwanda Development Board (RDB).
Conclusion
The opening of the first iron and steel factory in Rwanda is more than just an industrial project. It represents a major step toward economic independence, job creation, and reduced reliance on imports.
By September 2025, Rwanda will not only meet much of its domestic steel demand but also take a bold step into the regional export market.
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