ARISE seals industrial construction deals with Rwanda, DRC

ARISE Integrated Industrial Platforms has recently announced its plans to construct special economic zones in Rwanda and the Democratic Republic of Congo. The company is set to invest significantly in these markets to develop the necessary infrastructure to support manufacturing activities. The CEO of ARISE, Gagan Gupta, shed light on the details of these projects in an exclusive interview with CNBC Africa. Gupta emphasized the significance of the Rwandan market, particularly highlighting the Bougas area industrial zone, which spans approximately 330 hectares. The company envisions creating a comprehensive ecosystem that will foster transformation in various industries such as timber, packaging, agro-processing, and construction materials. This strategic investment in Rwanda reflects ARISE's commitment to driving industrial growth and economic development in the region. Moving to the Democratic Republic of Congo (DRC), Gupta shared insights on the company's venture in this vast country. The industrial zone in DRC is planned to cover 500 hectares, with ARISE investing $200 million in the project through a 60-40 joint venture with the government of Congo. Gupta revealed that an additional $450 million in investments from industries establishing themselves in the zone is expected. This ambitious initiative is projected to attract a total of $650 million in foreign direct investment within the next 12 months, signaling a significant boost to the local economy. Despite the complexities associated with the DRC market, including corruption and bureaucratic challenges, Gupta expressed confidence in ARISE's approach. By focusing on adding value within the country and prioritizing job creation, GDP growth, and increased tax revenue, ARISE aims to mitigate these obstacles. The company's emphasis on establishing a streamlined approval process within the industrial zones aims to reduce red tape and create a conducive environment for businesses to thrive. Gupta underscored the importance of collaboration between the private sector and government in driving sustainable industrialization in challenging environments like the DRC. Gupta also addressed the issue of failed special economic zones in Africa and offered insights on the key factors essential for success. Drawing from ARISE's successful projects in Gabon, Benin, and Togo, Gupta emphasized the importance of right-sizing projects, specialization based on the country's strengths, and adopting an ecosystem approach. By tailoring industrial zones to specific products, focusing on training, and adopting a public-private partnership model, ARISE has been able to create thriving industrial hubs that drive economic growth and value addition. The company's track record of successful industrial zone projects underscores its commitment to sustainable development and economic transformation across Africa.