Rwanda’s only cement manufacturer CIMERWA Ltd, yesterday, unveiled a new plant expected to increase production and boost export revenues.
The new state-of-the-art plant in Muganza Sector, Rusizi District, was inaugurated by the Prime Minister, Anastase Murekezi.
The factory, worth $170 million, has the capacity to produce six times the current capacity of 100,000 tonnes per year.
Speaking at the launch, Murekezi said the new plant presents an opportunity for the country to start exporting cement to its neighbours, while creating employment opportunities for Rwandans.
Increasing production capacity, according to Murekezi, makes it possible for the plant to export up to 30% of total production (200,000 tonnes) to other countries, such as DR Congo and Burundi.
This, according to the premier, will help drive sustainable economic development and poverty reduction.
And, most importantly, exporting cement to neighbouring countries means Rwanda will be able to reduce its trade deficit gap with at least an additional $92 million per year in foreign revenues, according to the National Bank of Rwanda (BNR).
Rwanda’s current cement demand is estimated at about 450,000 tonnes per year.
However, demand across the borders in DR Congo and Burundi is more than 900,000 tonnes.
Legodi Busisiwe, the chief executive officer of CIMERWA Ltd, said the new plant would play a critical role in enhancing competitiveness of the local construction sector through reduced logistical costs.
“The new plant seeks to bring on board high quality products that will help boost capacity of the country’s infrastructure,” he said.
Busisiwe hailed the country’s new investment code as a step forward in attracting more investments into the country.
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The new plant comes at a time when the Government is trying to narrow the country’s trade deficit gap by boosting its exports to a tune of at least 28% every year.
The country’s trade deficit improved by 6.0% from $722.56 million in 2014, to $6779.22 million during the first five months of 2015. There is hope that exporting cement could further narrow this gap.
Bringing down cement prices
Meanwhile, there is hope among market players that increasing cement production will reduce the high prices of Cimerwa cement in the country.
Currently, one bag of cement costs Rwf11,000, which is higher than imported cement that goes for between Rwf8,500 and Rwf9,000.
Ephraim Karekezi, a Kigali-based engineer, believes the new plant will help bring down cement prices.
“The cost of construction is high simply because of high prices of raw materials, including cement. Therefore, the new cement plant offers sector players the greenlight in addressing the question of affordability and propelling the sector towards economic excellence,” said Karekezi.
Figures from the National Institute of Statistics of Rwanda indicate there has been a significant increase in the construction sector’s contribution to the national economy.
The sector contributed Rwf109 billion to GDP during the first quarter of 2015, up from Rwf106 billion in the same period of 2014.
Real estate activities contributed Rwf91 billion to the national economy, up from Rwf83 billion during the first quarter of 2014.
More employment opportunities
Frederick Harerimana, the Mayor of Rusizi District, said the new plant offers immense opportunities to the construction industry and the employment sector.
According to Vivens Kalinganire, the human resource manager at Cimerwa, the new factory is expected to create more than 100 new jobs in addition to the current 126 employees by the end of the year.
The New Times.
