What Are The Economic Implications of Increased Chinese Outsourcing In the Rwandan Textile Industry?

Public project summary

There is an urgent need for entry-level employment opportunities in Rwanda. The unemployment rate has seen little change in the past few years, and the labor of 53.9% of the population remains underutilized (NISR, 2024). Many economists believe expanding the country's manufacturing capacity will increase entry-level employment opportunities, decrease reliance on foreign imports, and transform the economy (Benissan, 2022; Omoruyi, 2021). Within these spheres, many argue that the Rwandan government must align its policies to increase investment from Chinese manufacturers in the textile industry to achieve industrialization (Xiaoyang, 2014). As a result of recent policies, there has been an influx of Chinese textile manufacturers outsourcing factories to Rwanda (Dijkstra, 2020). As factories owned by Chinese manufacturers become more prevalent in the Rwandan textile industry, it is worth exploring the legitimacy of Chinese investment as a solution to employment issues. This paper seeks to determine the efficacy and the long-term implications of increased Chinese involvement in the Rwandan textile industry through a literature review and correlational statistics.