Energy shortage hampering steel factory

Rwamagana- SteelRwa industries, the manufacturers of steel bars, say they are experiencing a serious shortage of electricity, which is affecting their production. Rahim Manji, SteelRwa’s Managing Director, shared the problem with the Minister in the Office of the President, Solina Nyirahabimana, who led a delegation of Rwamagana district officials, on a tour of the factory, yesterday. Manji pointed out that out of the 3 Megawatts that the industry needs, they only accesses 1 Megawatt. The industry aims at producing 36,000 tons of iron bars per annum, to serve Rwanda and the region, he said. “However, shortage of power greatly hampers our production...we currently use one part of the industry.” The Indian investor further noted that Rwanda is one of the best investor friendly countries in the world, but to be even more competitive, the cost of energy needs to be revised. “Electricity costs are very high in Rwanda, which is why our iron bars won’t be as cheap as people expect,” he said. Desire Nyakiru, of the power utility body, EWSA said that procedures to avail the industry with the required power are underway. Minister Nyirahabimana thanked the factory owners for choosing to invest in rural Rwanda, and in a sector that is rarely taken on by other investors. “Investing in the industrial sector is vital for development of a nation...it will provide relatively cheap products and offer employment,” she said.The industry was constructed at a cost of US$ 7 million. Ends

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Energy shortage hampering steel factory