Rwanda taps $100m investment as Chinese set up cement plant

Rwanda has recently witnessed a significant step towards economic growth with the launch of a new $100 million cement factory, Angia Cement, that is projected to contribute one million tonnes to the market. The CEO of the Rwanda Development Board, Clare Akamanzi, shed light on the impact of this new venture in a recent interview with CNBC Africa. The factory's annual production capacity of one million tonnes surpasses the current national demand of 1.2 million tonnes, providing a surplus and signaling a positive development for the country's construction industry. With notable projects in the pipeline such as the Bwijesara International Airport and various housing and hotel developments, Rwanda is poised for increased demand in the construction sector, which the expanded cement capacity is prepared to meet. Moreover, the surplus production at Angia Cement will not only cater to domestic needs but also create opportunities for export to neighboring regions. Currently, Rwanda exports 22% of its domestically produced cement and aims to raise this figure with the enhanced capacity of the new plant, thereby reducing the country's reliance on cement imports. Additionally, the establishment of Angia Cement has led to the creation of over 2,000 job opportunities during the construction phase and a further 550 permanent positions, highlighting the positive economic impact of the project. This investment aligns with Rwanda's strategy to foster a conducive business environment and attract foreign investors through initiatives like the Manufacturing Built to Recover program. The successful launch of Angia Cement sets a precedent for the manufacturing sector and encourages potential investors to explore opportunities in finishing materials and related industries within Rwanda. Akamanzi emphasized the country's commitment to enhancing intra-Africa trade, citing Rwanda as a proponent of the African Continental Free Trade Area (AfCFTA). Having been an early adopter of the agreement, Rwanda showcases its dedication to facilitating seamless trade across the continent, benefitting businesses like Angia Cement in accessing new markets and expanding their export potential. Moreover, Rwanda's supportive investment policies, including tax incentives for market exploration, aim to encourage more enterprises to leverage the opportunities presented by the AfCFTA. The partnership with China stands out as a key focus for Rwanda, with the East Asian nation emerging as a significant investor in the country. Akamanzi highlighted China's substantial investments in Rwanda since 2018, amounting to nearly $1 billion, underscoring the growing partnership between the two nations. Rwanda aims to further collaborate with Chinese investors and leverage their expertise to drive economic progress. As the country aims to diversify its investor base and enhance trade relationships, Rwanda positions China and the global South as pivotal allies in its economic development journey. In conclusion, the establishment of Angia Cement and similar investments hold the promise of driving down prices in the construction sector by bolstering supply and fostering competition. With increased availability of cement in the market, consumers can anticipate more favorable pricing, thereby making the construction ecosystem more accessible to locals seeking to invest in residential and commercial properties. The surplus capacity at Angia Cement sets the stage for greater affordability and competitiveness in the construction industry, benefiting both investors and consumers alike.