NIRDA launches support initiative for firms producing construction materialfrom stone

The National Industrial Research and Development Agency (NIRDA) has launched a 2020-2021 Open Calls Programme for local firms in production of construction materials produced from stone. The initiative seeks to improve the competitiveness and quality of construction materials made out of stone for more uptake in the construction sector which has had growing demand of materials. The support follows the technology audit survey on the natural stone value chain which identified technological gaps that affect competitiveness and uptake of materials from the firms. The audit was carried out on 182 extractors, 19 processors and 119 end-users. It found that 87 per cent of primary extractors had no known technological input in exploration as well as heavy reliance on use of traditional hand used tools. The study revealed that only 21 per cent of processors have enough income to afford technology requirements with most lacking adequate revenue to invest in technology. The study also revealed that 43 per cent of end-users consider stone products in the construction industry as of high quality, 51 per cent perceive them to be good and only 5 per cent consider stone products to be of inferior quality. 32 per cent said that the products are competitive in both quality and price while 52 per cent said that the products are relatively competitive. Christian Twahirwa, Acting Director-General of NIRDA said that advanced technologies and technical support to be availed to the firms will increase both quantity and quality of locally made construction materials with some qualifying for the export market. “Rwanda still imports construction materials and yet there are enough natural stones including volcanic rocks. We need to support firms in the stone value chain so that they can produce competitive construction materials which can reduce the trade deficit in the sector. This would also bring down the cost of such construction materials,” he said. Who is eligible? The competitive process will select the best project proposals with innovative ideas that can lead to development of the enterprises. Firms eligible for the support must have been in operation for at least three years in the sector registered with Rwanda Development Board (RDB) or Rwanda Cooperative Agency (RCA). Dr Fabrice Ndayisenga, Head of Animal Production at MINAGRI, speaks at the meeting in Kigali on 5 November 2020. The business must also have a minimum of four employees and sufficient space for a stone processing plant. Selected firms will not be given cash directly but rather will NIRDA provide the capital through direct payments to suppliers of technology such as equipment, tools, machines, software as well as zero-interest loans without any collateral requirements. The support will also include availing cost-free technical and business advice to support the growth of businesses and thus improve production and management. The package will also train the businesses’ staff and management on the best technology, quality production processes as well as marketing strategies. “Open Calls programme is managed in a transparent way by a team of experts where we call upon firms to compete for support to acquire upgraded equipment with advanced technology, technical and business advisory support altogether,” Twahirwa said. How to apply He said that the application process will be done through the NIRDA’s website. The application process is in two steps with step one requiring applicants to fill the application forms on NIRDA Open Calls portal (www.opencalls.nirda.gov.rw). Once this is approved, the applicant will be invited to submit a full project application. The applicants will be considered on the basis of attributes of good experience, identification of their needs as well as how the support will impact their businesses. Applicants are also expected to be innovative and committed to growing businesses. NIRDA staff will be available to provide necessary support upon request with the agency running a toll-free line 1055. The deadline for application is on November 30, 2020. The support will also include availing cost-free technical and business advice to support the growth of businesses. Reacting to the Open Calls Programme, Jean-Marie Vianney Faida, who runs a company based on quarry and stone value addition in Nyamasheke District, said that the support is timely. “Getting advanced equipment and technology in quarry and stone value addition is not easy because it requires financial investment. To extract a stone and process it into floor tiles for instance requires advanced machines that cut them and process them into such products,” he said. Most of us have been using traditional tools for extraction. We need excavating and cutting machines which can increase quality at a high scale of production, he noted. He added there are also challenges of skilled staff in extraction and processing. “We hope the Open Calls programme will also address this issue of skills,” he said. Antoine Kajangwe, the Director-General of Trade and Industry at the Ministry of Trade and Industry said that the support will contribute to creation of 214,000 decent jobs and help the country increase locally made products both in quality and quantity. “Another aspect of economic transformation under the National Strategy for Transformation1 is accelerating sustainable urbanization from 18.4 per cent to 35 per cent by 2024. We cannot talk about urbanization and leave out the importance of natural stone and stone processing, especially for construction materials. We need products from processed natural stones in almost every construction activity,” he said. He thanked the Belgium government that has supported the initiative through its International Agency- Enabel. Dirk Deprez, Enabel Resident Representative in Rwanda, said that the partnership with Rwanda and Belgium in the urbanisation sector aspires to improve firms’ productivity and competitiveness on local and regional markets. “We believe this will boost the Made in Rwanda construction materials while increasing the job creation as well as Rwanda’s economic growth,” he said.

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NIRDA launches support initiative for firms producing construction materialfrom stone