Statistics from the National Bank of Rwanda show that an estimated 25,000 new houses have to be built annually in for the country to meet the demand for urban housing.
Investment in property and the construction industry has grown by 250% from $100 million to $351 million, between 2003 to 2008.
Investment opportunities in construction of residential housing and provision of building materials
1. Location: Gisozi, Kacyiru and Gaculiro
Description: Twenty ambassadorial villas in a 15 acre gated community. Each home is set on half an acre with a
plinth area of 500 metres.
Total project cost: US$14,329,932
Equity investment required: US$5,731,973
Sale price: US$800,000
Projected return on equity: 29%
Projected return on investment: 12%
2. Location of investment: Kimihurura/Nyarutarama/Remera
Description: 50 spacious homes in an exclusive 10-acre gated community. Each home is well finished with large windows, high ceilings, quality fittings and modern security system.
Project cost: US$12,775,310
Equity Investment required: US$5,110,124
Sale price: US$300,000
Return on equity: 44%
Projected return on investment: 17%
3. Location of investment: Kagarama
Project description: 5,447 mixed income homes of 4,3 and 2 bedrooms set on 39 hectares and divided into 10 discrete phases of 548 units. The land has already been set aside.
Total project cost: US$30,511,944
Equity investment required: US$12,204,777
Sale Price: US$60,000-80,000
Projected return on equity: 51%
Projected return on investment: 20%
4. Location of investment: Muhima
Project description: 219 middle downtown apartments all on a 5 acre plot. The complex is envisaged to include a blend of retail, recreational and other amenities.
Total project cost: US$14,488,092
Equity investment required: US$7,244,046
Sale price: US$80,000
Projected return on equity: 42%
Projected return on investment: 21%
5. Location of investment: Goboka/Kimisange
Site and service scheme sub-dividing 50 acres into 400 plots of 500 metres squared each.
Total project cost: US$5,339,970
Equity investment required: US$2,669,985
Sale price: US$15,000
Provision of building materials
Brick manufacturing plant
Total investment capital: US$15 million
Production capacity: 90 million bricks per year
Labour requirements: 92 employees
Return on investment at year 5: 87.80%
Cement production facility
Total investment capital: US$150 million
Production capacity: 1 million tonnes per annum
Labour requirements: 1,700 employees
Return on investment at year 5: 63%
Alternatinve block manufacturing – eg. Moladi, terrablock and hydraform
Clean household technology – eg. Sunlabob
Localised sanitation solutions – eg. Clearedge
Others: Builders are currently reliant on imports of the following materials: roofing tiles, steel, aluminium, wood,
glass, sanitary fittings, electrical equipment and fittings, pumps, tanks and sewage systems. There is therefore an opportunity for import substitution and local manufacture.
Investment insurance is available through the Africa Trade Insurance Agency and the Overseas Private Investment Corporation.
For more information on these construction projects contact the Rwanda Development Board.
Key contact: Christine Akuzwe
Investor Mobilizer Officer
Email: info@rwandainvest.com
