Rwanda
Sector
Construction & Materials
Property
1. Project: Ambassadorial villas
Location: Gisozi, Kacyiru and Gaculiro
Summary: The project entails the construction of twenty ambassadorial villas in a 15 acres 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
Unit price: US$800 000
Projected return on equity: 29%
Projected return on investment: 12%
2. Project: Gated community
Location: Kimihurura/Nyarutarama/Remera
Summary: Construction of 50 spacious homes in an exclusive 10-acre gated community. Each home is well finished with large windows, high ceilings, quality fittings and a modern security system.
Total 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. Project: Mixed income housing
Location: Kagarama
Summary: 5 447 mixed income homes of 4, 3 and 2 bedrooms set on 39 hectares and divided into 10 discrete phases of 548 units.
Total project cost: US$30 511 944
Equity investment required: US$12 204 777
Unit sale price: US$60 000-80 000
Projected return on equity: 51%
Projected return on investment: 20%
4.Project: Apartments
Location: Muhima
Summary: 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. Project: Building materials
Summary: The investment opportunity entails the provision of building materials as follows:
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%
Alternative block manufacturing – eg. Moladi, terrablock and hydraform
Clean household technology – eg. Sunlabob
Localised sanitation solutions – eg. Clearedge
Investment insurance: Available through the Africa Trade Insurance Agency and the Overseas Private Investment Corporation.
Sector: Investment in the construction sector in Rwanda has increased significantly driven by population growth of 2.8%, urban growth - currently at 4% per annum, growth of the middle-class and returning diaspora. Consequently, there is a shortage of construction material. The government projects that by 2020, approximately 30% of the population will live in urban
areas. Only about 5% of residents in Kigali own modern-style houses and demand in the capital city alone is 8 000 to 10 000 units per year. The combined demand for housing countrywide is estimated to be 25 000 units per annum. In the commercial housing segment, the recent increase in foreign investments has created a shortage of upper end office space with fully equipped telecommunications, utilities, and power. From 2003 to 2006 rent on these buildings increased between 50-200%.
For more information on these construction projects contact the Rwanda Development Board.
Key contact: Christine Akuzwe
Investor Mobilizer Officer
Email: info@rwandainvest.com
