EDITORIAL: New plant a boon to the construction industry

A new plant that produces various types of construction materials has been commissioned in Rwamagana District, providing sector players huge relief as it will ease access to and help reduce the cost of construction materials.

A new plant that produces various types of construction materials has been commissioned in Rwamagana District, providing sector players huge relief as it will ease access to and help reduce the cost of construction materials.

The factory, owned by NISSI Machinery and Construction Company, has production capacity of up to 500 tonnes of building materials daily.

 

The firm, a joint venture between Business Development Fund and other entities, produces sand, stone base, small aggregates and large aggregates from stones, as well as heavy duty packers, road curbs, blocks and ventilators, among others.

 

Lack of locally-made materials is one of the key challenges facing real estate developers and the construction sector generally. The country spends millions of dollars on importation of various construction materials and other products each year, and has already designed an import substitution strategy to address the challenge.

 

According to the 2015 Domestic Market Recapturing Strategy, the development of the domestic construction material industry could save the country $206 million spent on importation of building materials per annum. Therefore, the launch of the new plant in Rwamagana gives the sector much-needed relief, and will also create jobs for residents and boost local revenue generation.

As the Rwamagana District mayor rightly put it, the factory could be pivotal for the construction sector in the province and its contribution to community development cannot be underestimated owing to the multiplier effect it will have on the province’s economy.

Already, the firm has indicated it will employ over 100 permanent workers, mainly local residents, while hundreds more will supply it with various raw materials.

It has also partnered with local authorities and enabled residents to access electricity. All these are crucial for the area’s development and will enhance growth and household incomes in the area, subsequently improving people’s living standards.

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