Cimerwa unveils Rwf126.7b modern cement plant, targets regional market

Cimerwa, Rwanda’s sole cement manufacturer, is targeting the regional export market following the completion of works on a new plant. Cimerwa based in Rusizi District, Western Province, was previously producing 100,000 tonnes of cement per year compared to 450,000 tonnes needed to meet the market demand. However, the $170 million (Rwf126.7 billion) new cement plant that came on line last Thursday is expected to increase the firm’s output by 500,000 tonnes to 600,000 tonnes of cement per year. “This will be 150,000 tonnes more than what is required by the country currently. Therefore, we will export about 30 per cent of our total production to the neighbouring Burundi and the DR Congo,” said Juvenal Rutaganda, the operations manager and acting chief executive officer. Rutaganda said the current demand across the three countries is about 900,000 tonnes of cement. “Our job will be to ensure a competitive product that is available to everyone in the region,” Rutaganda told The New Times during a tour of the project last week. 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 narrowed 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. Therefore cement exports to regional nations could further improve the country’s balance of payment position. High cement prices 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. Currently, 50-kg bag of cement goes for Rwf11,000 at Cimerwa compared to imported cement that costs between Rwf8,500 and Rwf9,000. Ephraim Karekezi, a Kigali-based structural engineer, is hopeful 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 a green light in addressing the question of affordability,” said Karekezi. Statistics from the National Institute of Statistics of Rwanda (NISR) indicate that there has been a significant increase in the sector’s contribution to the national economy. The construction sector contributed Rwf109 billion to GDP during the first quarter of 2015, up from Rwf106 billion during the same period last year. Real estate activities added Rwf91 billion compared to Rwf83 billion during the first quarter of 2014. These figures could increase once most of the raw materials are produced locally, sector experts say. More employment opportunities Frederick Harelimana, the Rusizi District mayor, said the new plant will create more new jobs for residents and other Rwandans across the country through dealerships. Vivens Kalinganire, the human resource manager Cimerwa, said the new plant is expected to create over 100 new direct jobs by the end of the year besides the current 126 workers employed at the firm. Under the second Economic Development and Poverty Reduction Strategy (EDRPS II), the government seeks to create 200,000 off-farm jobs annually.

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Cimerwa unveils Rwf126.7b modern cement plant, targets regional market