RUSIZI - Prime Minister, Anastase Murekezi, today inaugurated a new cement plant by the country’s sole manufacturer, Cimerwa Ltd, based in Muganza Sector, Rusizi District. The new plant that was constructed at a cost of $170 million (approx Rwf126.7 billion) will increase the capacity of the factory to 600,000 tonnes a year, up from 100,000, according to the firm’s management. Speaking during the launch, Murekezi said that the new plant presents an opportunity for the country to start exporting cement to its neighbours while creating employment opportunities for Rwandans. The development is expected to narrow down the country’s export deficit as the locally produced cement will not only satisfy local demand but also have surplus that will be exported to neighbouring Burundi and the Democratic Republic of Congo. Rwanda currently needs 450,000 tonnes per year. The project will significantly support efforts by government to reduce Rwanda’s trade imbalance by increasing exports by at least 28 per cent annually by 2018.

Rwanda’s trade deficit reduced by 6 per cent to $6779.22 million during the first five months of 2015, down from $722.56 million over a similar period last year.

Meanwhile, there is hope among market players that increasing local production could help reduce cement prices and facilitate the growth of the construction and real estate sectors.

"The cost of construction is high simply because of high prices of raw materials including cement; therefore the new cement plant offers sector players a green light in addressing the question of affordability and help propel the sector towards economic excellence,” said Karekezi.

Currently, 50-kg bag of cement goes for Rwf11,000 at Cimerwa compared to imported cement that costs between Rwf8,500 and Rwf9,000.