Govt banks on community processing centers to boost SMEs

Govt banks on community processing centers to boost SMEs 

In a bid to  increase  local production and  address challenges  the Small and Medium enterprises-SME cluster is  facing, the  government  is  has started  community  processing Centers-CPCs.

The Minister of trade and Industry Francois Kanimba said that the processing centers will increase   SME contribution to the national economic development in line with government programs.

“The ministry    initiated the CPC concept in 2012 as a mechanism to address the challenges SMEs are facing and boost local production capacity for recapturing local, regional and international market,” he said

The   processing   center are seen by  government as  role  model   centers to help boost the creation of more  SME  in   processing cluster  to   boost  production  needed to   increase   exports

The  Minister say that  so far  a  community  processing center  in Gatsibo   district for leather  is operational  while  equipment   for two more  Community   processing centers, the dairy   in Burera and  Irish  potato in Nyabihu district were  procured  last year  and  awaiting installation.

While   a processing center for banana in Rwamagana district   is ongoing with its construction process expected to end by June this year.

“the operationalization  process  of four more  CPC  will  start  by  2015 namely  tailoring and  fashion, ceramics and  pottery , minerals and precious stones and honey  as well,”  the Minister  added

The SME cluster   that is struck with   challenges less capital and taxes is seen as the country’s engine towards job creation and increasing production to leapfrog the economy to middle income.

To achieve this  , Minister Kanimba says the government  has  embarked on  several strategies such as  hungaumurimo(create your  own  job), Business Development Fund  for collateral  support  which is likely to boost   the cluster.

“By February   this year, business  development  advisors will  start providing  advisory  services to  potential  entrepreneurs and existing  ones at  sector(Umurenge)  level,”  Kanimba  added.

The SME which are part of   the private sector are seen as ways   to boost the   value addition mainly for agricultural products destined for export while on the other hand create off farm jobs.

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