Rwanda could soon save up to $12 million (about Rwf8.6 billion) per year in importation of construction materials, thanks to a new factory that will be set up in the special economic zone by Strawtec Building Solutions, a German firm.

The $10 million (Rwf7.2 billion) factory is expected to manufacture high-quality modular prefabricated wall panels from wheat straw, and is expected to serve 2,000 housing units in its first phase, Eckardt Dauck, the firm’s board chairman, said.

The project will mostly target, residential houses, office, shopping centres and apartments, Eckardt said.

The factory will seat on 3,800 square metres and is expected to boost government’s efforts to deliver affordable housing, Alex Ruzibukira, the director general for investments at the Ministry of Trade and Industry, told Business Times at the ground breaking ceremony last week. According to EDPRS II targets and Rwanda Housing Authority (RHA), Rwanda needs more than 344,068 housing units by 2020 to be able to meet the growing demand. That means more than 35,000 housing units on average per year.

"The project is expected to benefit more than 2,000 farmers along the value chain of supply, especially rice and wheat growers, Ruzibukira said.

More than 1,400 agronomists and farmers across the country have already been equipped with skills that will help them tap into the project.

"This will be one of the flagship projects going forward because of its capacity to create jobs for the youth, generate revenue, but, most importantly, ensure technological transfer, Ruzibukira noted.

We are finally looking at the most efficient way of delivering affordable houses but also reducing on our import bills by supporting locally produced construction materials, he added.

Government is seeking ways to reduce its imports bill by at least $450 million by 2018.