Rwanda has closed 250 factories producing substandard alcoholic beverages, Health Minister Dr Sabin Nsanzimana has said. The minister disclosed the action at a meeting of the National Consultative Forum of Political Organisations, noting that a further 200 businesses had applied for licences but had not yet begun production. Some producers were also operating without licences, though the minister did not specify how many.
The surge in substandard alcohol production, locally known as ibyuma, accelerated during the Covid-19 pandemic. Nsanzimana explained that manufacturers initially used bananas as a base ingredient but switched to ethanol mixed with powdered flavourings when banana prices rose. The shift allowed production to expand rapidly, creating a widespread problem that prompted government intervention.
Political representatives at the forum questioned how so many factories had obtained operating licences from the government regulator responsible for overseeing medicines and food products. Dr Alvera Mukabaramba, president of the Party for Progress and Concord, suggested that the number of factories could have reached 500 had authorities not intervened and stopped issuing new licences.
The closure of the factories has produced measurable public safety results. Nearly two months after the government introduced measures to suspend and ban substandard alcoholic drinks, authorities in the health, security and justice sectors reported a decline of more than 50% in crimes involving assault and bodily injury. Nsanzimana advised business owners affected by the restrictions to explore alternative ventures, including food processing, non-alcoholic beverage production, nutritious product manufacturing and agriculture.
For savers and borrowers in Rwanda, the closure of these operations removes a source of economic activity that was operating outside formal regulation and tax collection, though this also eliminates informal income sources for affected producers.