Construction booms as housing materials become more available

The construction sector, especially the housing industry, is experiencing a boom. In a bid to promote development, the country is fast positioning itself to achieve economic progress through service delivery in all sectors. “Our prices are competitive and we sell quality materials imported from different countries like Spain, Brazil, China and Italy,” said John Kayitare, marketing and sales representative of Kigali Ceramica and Furniture. “We offer ceramic tiles, granite and marble bathroom cabinets, water heaters, bathroom sets and shower room cabinets and many other quality finishing products,” adds Kayitare in an interview on Thursday. Last year, the construction sector fetched over Frw13 billion, registered 11 new projects and created 485 jobs. The sector also accounted for 5 percent of the total investment in the country recorded last year after services and manufacturing. But despite this improvement, statistics still indicate that 25,000 units are needed annually to address the housing problem countrywide, something that is even forcing international real estate developers to rush to Kigali to invest in the housing sector. Local suppliers say most real estate developers have chosen to deal directly with manufacturers and international dealers who are thought to offer better quality. The real estate developers presume the local suppliers lack the capacity to import high quality and large quantities to satisfy their demand. They also perceive them to be expensive. According to the traders, real estate developers in the country like Real Contractors, Global village investments, DN International and the government pension body, the Social Security Fund, could save time and mitigate risks if they offered business to local traders. According to Kayitare, local traders have built enough capacity to supply quality products in high quantity. He adds that his business provides quality materials and offers free delivery and special rates for projects and contractors. Chapter 2.3 of vision 2020 stipulates that Rwandan towns will have the tools to achieve sustainable urban management and planning and that the urbanisation rate will rise from 10 percent to 30 percent of the population. This translates into increased net benefits to the business community though it will require capital retention in the economy. If the private sector is to benefit from this growth, the augment is that, real estate developers especially those owned by government, need to use local suppliers for finishing construction material. The Secretary General in the Ministry of Education, Justin Nsengyumva, revealed that over the last few years, government has initiated a comprehensive set of reforms to the environment in which businesses operate so as to better market Rwanda as a viable investment destination. Suzan Assimwe, the marketing officer of Real Contractors, recently said that purchasing building materials from abroad increases rent prices in absolute terms. Yet a source in Décor House, a company that trades finishing materials, said that real developers purchase from abroad because they want to gain more and push real estate prices high. To solve the problem of housing dispersion, the Government’s objective is to develop strategies to attract the rural population into improved urban centres. But it also requires strategies to support the dealers in that industry. Ends