Officials from the Ministry of Commerce, Trade and Industry (MINICOM) have been asked by the lower chamber of deputies to explain the rocketing prices of cement that has seen costs hiking from 5,700 Rwandan francs to 11,100 Rwandan francs, RNA has established. [passage omitted]
Due to speculation, a bag of Rwanda cement hiked to 7,200 Rwandan francs from 5,700 Rwandan francs six months ago. Hima Cement imported from Uganda has increased from 75,000 Rwandan francs to 97,000 Rwandan francs. Retail prices have now soured to 11,100 Rwandan francs.
According to MINICOM officials, government opened its doors to allow in imports from neighbouring countries to cover what had been noticed as an imminent cement shortage. Data from Cimerwa indicates that last year Rwanda imported 67.8t of cement from Uganda.
The company has a production capacity of 8,000t per month and 100,000tpa on average. This means the quantity produced is not enough to sustain the booming construction industry in Rwanda.
MINICOM planners however note that Rwanda needs more 100,000tpa to sustain the current demand that has seen a vigorous boom in the construction sector.