The African Development Bank (AFDB) has granted a US$30m loan to CIMERWA for expansion to increase capacity at a time when cement prices have been rocketing high, RNA reports.
The financing approved Wednesday, will allow CIMERWA to construct a new 700,000tpa cement plant that will replace the existing 100,000 capacity plant. The total cast of the plant is US$60m – with more financing coming from other sources.
The plant will create 285 jobs as well as enhance social infrastructure for neighboring communities in Southern western Rwanda, said the Bank in a statement.
“Increased cement production will potentially result in a decrease in the price of cement for end-users, thus diminishing the cost of a key component in the construction industry, and boosting the development of the country’s manufacturing sector.”
Rwanda has been importing cement from China and neighbouring countries to take care of current demand estimated at 25,000tpa. A bag of cement buys at different prices ranging from 12,000 and 15,000 depending on where you buy it.
Expansion of CIMERWA, owned 10% by government and the rest by the Rwanda Investment Group (RIG), has been in the pipeline for more then four years. The new plant is expected to be completed next year.