Rwanda: Rwanda's only cement manufacturer, Cimerwa, has inaugurated its new US$170m, 500,000t/yr capacity cement plant in Muganza, Rusizi. Its current plant produces 100,000t/yr.

Increasing production capacity makes it possible for the plant to export up to 30% of its total production to other countries, such as the Democratic Republic of Congo and Burundi. This is expected to drive sustainable economic development and poverty reduction. Exporting cement to neighbouring countries means that Rwanda will be able to reduce its trade deficit gap with at least an additional US$92m/yr in foreign revenues, according to the National Bank of Rwanda (BNR).

Rwanda's current cement demand is estimated at about 450,000t/yr. However, demand across the borders in the Democratic Republic of Congo and Burundi is more than 900,000t/yr.

Legodi Busisiwe, the CEO of Cimerwa, said that the new plant would play a critical role in enhancing competitiveness of the local construction sector through reduced logistical costs. "The new plant seeks to bring on board high quality products that will help boost capacity of the country's infrastructure," he said.

The new plant comes at a time when the Government is trying to narrow the country's trade deficit gap by boosting its exports to the tune of at least 28%/yr. The country's trade deficit improved by 6% from US$723m in 2014 to US$6.78bn during the first five months of 2015. There is hope that cement exports could further narrow this gap.

There is hope among market players that increasing cement production will reduce the high prices of Cimerwa cement in the country. Ephraim Karekezi, a Kigali-based engineer, believes that 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 the green light in addressing the question of affordability and propelling the sector towards economic excellence," said Karekezi.