Cooperatives changing the face of the city

For a first time visitor to Gakinjiro, home to artisanal workshops and hardware shops, the gigantic new buildings along the Kinamba-Kagugu road might give one the impression that city moguls have turned their interests to the flourishing neighborhood. That is just a wrong impression. Cooperatives of hardware traders, workshop owners and other small and medium enterprises are the magic behind the new booming real estate development. One of them is Cooperative de commerçants de materials de construction (Copcom) that deals in hardware including metal work and carpentry. “Gasabo District lent us this plot in 2004 when we relocated from Gakinjiro in Nyarugenge District, but we were not comfortable working in a disorganised manner. We knew we could be chased away if we did not comply with the city master plan,” said Emile Ndahumba, the cooperative’s president. The 321 member Copcom that includes 70 women came together in 2010 and put in place a committee that started collecting contributions for a project to construct a mega structure. The three-storey 420–room complex that is in the completion stage cost Rwf4 billion. Each member contributed Rwf6 million towards the construction and the rest was a loan from the Development Bank of Rwanda (BRD). “In July we shall relocate to this building. Everyone will occupy their room, and we shall start to service the eight-year loan where each of us will be paying Rwf150,000 per month,” said Ndahumba, adding that a hundred extra rooms will be available for rent. “We have trust in our leadership in managing our projects,” said Jean Sibomana, a member of the cooperative who deals in electrical hardware. The man in his 40s left Kayonza District in 2004 and joined Copcom. He invested Rwf1.5m in hardware, now he has managed to build a house worth Rwf20 million and a car. “When we relocate to this building, I will start going to Dubai to purchase hardware, because not only does this building have enough space, but it also convinces clients that we are serious businessmen,” he said. “It is a dream come true. At first we had many pessimists, but we now believe the sky is the limit,” said Ndahumba, revealing that more projects were in the pipeline. Ndahumba said they are looking at building a modern workshop, where they will recycle the metallic products currently being exported to regional firms. Other successful cooperatives have cropped up close to Copcom and have also erected buildings. They include Adarwa, a cooperative of timber dealers and Duhahirane that houses foodstuff dealers. Also at the finishing phase is the magnificence Soprocogi building, a cooperative of 12 investors. Elsewhere in Kigali, the spirit is the same. In Muhima and Nyarugenge sectors for example, major projects are flourishing. One of them is Muhima Investment Company (MIC) occupying a plot that used to host the Human Rights Commission. Philbert Haragirimana, the MIC chairperson said the company brought together 85 traders now operating from Quartier Matheus in the traditional city central business district. Their contributions varied between Rwf25m and Rwf100m. The project includes in the first phase, a nine-storey building for both business and apartments and will cost about Rwf11.5bn, and later a 12-storey office block. Another successful investment is Kigali Investment Company (KIC) that also gives advice to upcoming businesses. The company consists of ten members who came together and collected an estimate Rwf4bn (over Rwf400m per individual) and borrowed Rwf 9bn. They built a seven-storey building with 580 rooms at Kigali City Market in Nyarugenge District that was unveiled in 2012. “We have recovered a big portion of the loan and we will finish in the next four years,” said James Rudasingwa, the company spokesman. This is another mega project by KIC and it is divided into two phases. The first phase, whose plan was tabled in the City of Kigali one-stop centre and is expected to start in the next two months, will cost Rwf 800m and will be entirely financed by the company.

National

Cooperatives changing the face of the city