Construction works on a Rwf5 billion electric cable factory in Nyanza District, Southern Province have been completed with the plant set to begin operations next month.

Patrick Kajyambere, the Vice Mayor in charge of economic development in the district, told The New Times that machinery is now being installed and tested ahead of the official launch.

"The factory was constructed by Mark Cables Company but the district also owns shares in the factory,” he said.

He said that the plant has the capacity to manufacture 5,000 kilometres of cables per year.

"It will supply both local and regional markets,” he said.

The vice mayor said that the factory is set to employ between 1,000 and 1,500 people.

"There are more jobs to be created along the supply chain. Those who will come to transport the products will create business opportunities for those who want to invest in restaurants, accommodation and others,” he said.

Meanwhile, the district is also set to get tile manufacturing factory. The factor will begin operations in December this year, according to officials.

This, he said, comes in the wake of a Rwf1.2 billion Integrated Craft Production Centre known as Agakiriro that is about to be completed.

"The centre will also host a garment factory that could also start in March all which need electricity materials,” he said.

Demand and trade deficit

According to trading data by the Rwanda Development Board (RDB), strong local wire and cable market drivers include the need for electricity to be rolled out across the country, energy production from renewables, construction growth, and urbanization rate among others.

Rwanda spends $30 million on cable imports annually, according to available data.

The East African Community accounts for 11 per cent of the country’s cable imports.

Local manufacturing of electric cables will thus bridge the deficit.

The cable factory in Southern province becomes the second cable factory in Rwanda.

At the end of 2018, the first $6 million cable plant by Alpha Cables started to manufacture cables in the Kigali Special Economic Zone with the capacity to produce more than 600 tonnes of cables annually.

The factory produces 50 tonnes equalling 1,000km of multi-core copper cables every month.

Government seeks to increase electricity generation capacity from 238.36 MW to 556 MW by 2024.

Access to electricity by population is set to increase from 56.7 per cent to 100 per cent by 2024.

The growing consumption of electricity is set to double the demand for electric cables.