Description

INVESTMENT OPPORTUNITIES IN REAL ESTATE AND CONSTRUCTION

Overview

• Rwanda’s ongoing economic recovery is construction-led and is set to continue.
• The GoR has attached a very high importance to promoting construction projects and has increased government investment in infrastructure expansion and modernization.
• Construction spending in 2015 : 546 M USD and is growing at 10 % (2014/2015)
• Real Estate spending in 2015: 471 M and is growing at 7 % (2014/2015).
• Construction industry is contributing more than 7% to the national GDP and is growing at 9.4 % (2013/2014) on account of sustained expansion in private constructions and public works.
• Among the notable opportunities in the Urbanization and Housing is the implementation of the Cities Master plans
• Strategically, the Government of Rwanda pointed out six secondary cities (poles of growth): Rubavu, Musanze, Nyagatare, Muhanga, Huye and Rusizi.

The recent remarkable growth in local and foreign investment implies that there will be continued growing demand for residential as well as commercial buildings.  Total Housing needs in Kigali alone reaches 458,265 dwelling units (2013-2022). These requirements could be met by building new dwellings of up to 344,068 DU.

As the city continues to urbanize at a rate of 15 per cent with estimates pointing to 35 per cent by 2017 and with a growing middle class and fast growing population, the urban population is expected to grow as more people migrate to towns to take up the growing number of jobs and to start businesses.

This puts pressure on the available infrastructures, and affordable housing will be needed for this growing population, thereby creating more opportunities for the construction sector.

Today in Rwanda, a number of key materials are manufactured locally, whereas others are imported. The main ones manufactured locally are: Cement, metal roofing sheets, hollow sections and profiles, clay and ceramic building materials (bricks, blocks and tiles), rebars and paint. However, manufacturing capacity of existing companies does not saturate the subsector market; it is instead complemented with imports, hence a need to set up more manufacturing plants that would make construction materials.