NIRDA drives growth for stone, clay construction material producers
Wednesday, June 26, 2024

Over the last three years, 75 enterprises in Rwanda's clay and stone value chain have benefited from NIRDA's Open Calls Programme, getting coaching, technical support, and business advisory services, among other resources.

The Open Calls Program, launched in 2018 by the National Industrial Research and Development Agency (NIRDA), is based on competitive applications. It strives to empower businesses by providing training and cutting-edge equipment, consequently increasing the production of locally created products across a wide range of industries.

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At the project&039;s closing ceremony on Tuesday, June 6, the impact was evident as chosen companies showcased their accomplishments using upgraded equipment and received certification as alumni.

Promoting local sustainability

Dr Christian Sekomo Birame, NIRDA Director General, emphasised in a press interview the importance of business management workshops in improving existing operational success among local firms.

"As Rwanda invests in infrastructure, the clay and stone value chains are critical to assuring high-quality construction materials. This includes clay and stone bricks, which are vital components of our thriving construction industry. Beyond meeting local demand, we've also seen an increase in exports of these products, demonstrating their demand both locally and globally."

BPN Rwanda's Country Director, Alice Nkulikiyinka, underlined the training programme's disruptive influence

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Birame addressed the importance of local production for sustainability, saying, "Our focus is on Made in Rwanda projects, which promote locally sourced bricks and stones to construct housing properly. This is great news for people pursuing a career in clay or stone. Our policies are intended to promote sector growth and allow access to building bids."

He pointed out NIRDA&039;s revamped flagship programme, the Open Calls initiative, saying, "We are improving this programme to connect beneficiaries with critical financial and technical support, allowing them to implement advanced technologies for more productive factories, thereby reducing obstacles in equipment procurement and funding."

This endeavour aims to change the financial culture by ensuring that available funds match operational demands.

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Enhancing tech and training

Enabel, Belgium&039;s federal government development agency, invested roughly Rwf3.5 billion in a 2022 grant agreement with NIRDA and the Development Bank of Rwanda (BRD). This grant was intended to encourage SME investment in the agriculture and urbanisation sectors by reducing investment risks and removing barriers for value chain operators.

Jean Pierre Hakizimana, Enabel's Private Sector Development Advisor, expounded on their approach: "Through our tech audit, we highlighted significant issues such as limited access to funding, outdated technology, and insufficient training within the clay and stone value chains.

"Many businesses showed a willingness to expand but lacked the resources to do so efficiently. We incorporated these requirements into a complete structure, and over the last three years, we have seen development.

Delegates follow panellists as NIRDA and Enabel oncluded a 3-year Business Development Services for clay&stone value chains actors for construction materials. Courtesy

"Participating businesses reported a 16.5 per cent increase in turnover, significant job creation, with over 1,500 positions resumed post-COVID-19, and beneficiary enterprises launching 38 new items into local and regional markets,” Hakizimana said.

Optima Clays Ltd, based in Ruli cell, Shyogwe sector, Muhanga District, produces bricks, pavements, clay tile roofing, and other building materials. According to managing director Eurelie Murekeyisoni, the initiative has transformed their operations.

"Getting both workshops and equipment has completely transformed our business," Murekeyisoni said. "We have increased our emphasis on brand image, customer relationships, and overall sales. With our new technology, we can now produce 3,000 bricks every hour, up from 3,000 bricks per day. Our product quality has also risen dramatically, boosting the local market as more Rwandans invest in property.

"Our next goal is to begin exporting, as we are convinced that our bricks can compete internationally,” she said.

Reflecting on the impact of working with NIRDA, Enabel, and BPN over the past three years, Engineer Byazaire Kitoko, Operations and Technical Manager of CAMOSAG Ltd in Musanze District, Nkotsi sector, Bikara cell, expressed: "The collaboration was filled with invaluable advisory and industry insights.

"Essential workplace practices like business networking, project planning and management, hiring and onboarding of personnel, operational follow-up, logistics, and more were covered in the training we attended. Our visit to Belgium to hear from business executives about automation was one of the most motivating experiences."

He observed that CAMOSAG Ltd. has changed its strategy: "Previously, we only focused on increasing revenues, which occasionally jeopardised the quality of our products.

"After going through all the training, we learned that legacy matters and should be reflected in our products, as a result, we are now more focused on creating a strong, efficient product, even if it means investing in lower overhead.”

Exporters of building supplies to the neighbouring DR Congo, CAMOSAG Ltd., is experiencing growth: "We shipped about 20 tonnes of construction stones each month before the programme. Our exports now surpass 100 tonnes each month as a result of enhanced procedures and a wider range of goods, such as bricks, pavements, sand, gravel, and decorative stones.

"While our operations have expanded, we recognise the need for enhanced technology to process materials more efficiently," Kitoko stated about future areas of improvement.

"Building a long-lasting, sustainable firm is motivated by our Belgian peers' centuries-old clay and stone companies.”

Transforming business mind-sets

BPN Rwanda's Country Director, Alice Nkulikiyinka, underlined the training programme's disruptive influence, saying, "We aimed to elevate practices and shift mind-sets, as these are often critical factors in business success.

"Of the 75 enterprises we assisted, over 2,000 jobs were generated. We encouraged peer-to-peer involvement and mentoring to promote growth since we understood that operating a business can be lonely. We also ingrained a vision for sustainable success through outstanding customer delivery, employee happiness, and long-term planning."

Nkulikiyinka emphasised the need for consistency in relation to the training's emphasis on exporting and increasing operations: "Many enterprises had only made sporadic shipments prior to our intervention. We emphasised how important it is to set up reliable production systems, uphold quality standards, and guarantee process continuity. Consequently, 15 per cent of the companies we educated are currently engaged in active global product exportation.”

Panellists discuss as NIRDA and Enabel oncluded a 3-year Business Development Services for clay&stone value chains actors for construction materials. Courtesy