Investors in the mining sector are complaining that high electricity tariffs are blocking the processing of minerals in Rwanda, leading to exporting raw minerals which are not attractive on the international market.
Speaking to The New Times yesterday, Dominic Bidega, the head of regulation and supervision department in the Geology department said that negotiations with government to reduce electricity costs are underway.
Currently 1Kw of power is sold at Rwf 102, the investors are holding out for Rwf 28 per kilowatt.
“From the assessment we have done, there is capacity to set up industries that would process minerals in Rwanda, but electricity costs are still a challenge,” Bidega said in an interview.
Janet Mutesi, the Managing Partner of Pyramid Mining Company, told The New Times that the already existing mining companies in Rwanda have the capacity to process mineral products but can’t afford the electricity needed.
“We would add value to minerals and this would contribute to high revenue, but electricity costs stopped us,” Mutesi said.