Due to major infrastructure projects underway in Kigali and other regions of Rwanda, there is a serious shortage of construction materials and prices are rapidly increasing. Infrastructure investments reached 615 billion Rwf (USD450 million) in the 2025/26 budget.
It is predicted that mega projects such as Bugesera International Airport, Nzovu Mall, wetland rehabilitation, road projects and social housing will consume about half of the country's annual cement production of 1.5 million tons and a significant amount of steel imports.
This situation is negatively affecting small scale construction. For example, the price of iron bars has nearly doubled from Rwf14,000 to Rwf27,000. The price of a truckload of bricks has risen from Rwf70,000 to Rwf120,000. Some materials have been unavailable for months.
According to official data, the Producer Price Index (PPI) indicates that construction material costs increased by 5–10% in 2025. Non metallic mineral products such as cement and lime increase by 21%, while metal products increased by 22%. The manufacturing sector grew by 7.7% year on year in May 2025. The total value of the construction industry increased from USD1.3 billion in 2024 to USD1.4 billion in 2025.
In the second quarter of 2025, construction output grew by %5 year on year, and the industrial sector grew by %7.
However, these mega projects are criticized on the grounds that they increase income inequality. It is stated that investments such as airports and convention centers that appeal to high income groups have negative impacts on rural areas and low income groups.
Comments
No comment yet.