Kenyan gypsum exports expected to grow

{reg}Rwanda’s is set to open a cement plant that is  expected to increase the Kenyan gypsum exports. The plant will be located in Muganza, Rusizi district and will cost $30 million and will have a capacity of 700 thousand tons a year.

According to a report posted on the Business Daily, the plant will be replacing an existing 100 thousand ton facility. The new capacity is expected to alleviate the cement shortage currently experienced by the country is expected to help support the burgeoning demand spurred by  infrastructure projects and improvements in the housing sector.

Recent estimates show that the increase in Rwanda’s cement production facility will necessitate the importation of about 24,000 tons of Kenyan gypsum.

However, Rwanda’s imports of heavy fuel are set to decrease, the report said. This is due to the  recent modifications in the Cimerwa plant which calls for its energy source to be composed of 70 percent peat and only 30 percent oil. However the facility will continue to annually import about 13,860 tons of heavy fuel from Mombasa in order to operate a plant in Muganza.

Currently, the Rwandan economy continues to grow with the construction industry being one of te prime beneficiaries, the report said. The Rwanda Development Board (RDB) noted that the recent upswing began back in 2007 as the country’s development and public works sectors posted a 10 percent increase.

However, this created a shortage in residential housing as well as a lack in office space. In 2009, the construction industry continued to grow by about 15 percent. Estimates show that it provided about $141 million to Rwanda’s Gross Domestic Product (GDP).

Investments in the construction industry also increased 250 percent between 2003 and 2008, the report said. The period showed investments rising from $100 million to $350 million. The country also imported about $140 million worth of construction materials in 2008 as supposed to the $64.6 million in the previous year.

Also, in 2008, the general construction industry’s revenues grew by about 51 percent due to a 2.8 percent increase and population and a 4 percent per annum increase in urban growth.{reg}

Lime & Gypsum