Rwandan taxpayers are losing billions in projects set up by the government to support small and medium traders in rural areas but currently lying idle or underutilised.

The government set up community processing centres (CPCs) in 2013, investing at least Rwf 4.113 billion in six pilot projects to boost small and medium enterprises processing capacity and productivity of high-quality products.

The CPCs were established in Nyabihu, Burera, Nyanza, Gatsibo, Rutsiro and Rwamagana districts. The latest Auditor General’s report 2019/2020 shows that CPC programme is failing as four of the six are performing below capacity while two are not in operation.

For example, in 2017, the government used Rwf439.3 million to set up Nyanza Ceramics to produce and trade diverse ceramic products. Despite the heavy investment, there was no business plan developed to guarantee feasibility and viability of the centre. Consequently, Nyanza Ceramics never operated and was privatisd at Rwf88.43 million.

Some centres are currently idle with few to no operations despite investments made. One of them is Rwamagana Banana Wine, the most expensive of the six pilot centres with Rwf1.198 billion invested.

According to Valens Muhakwa, the Public Accounts Committee (PAC) chairperson, there is no value for money from the over Rwf4 billion that was allocated for their [CPCs] establishment.

He said that responsible officials failed to provide valid reasons why CPCs were established without carrying out the need assessment and business plan.