The Ministry of Infrastructure has reiterated its plans to increase capacity within the construction industry including boosting access to finance by local construction firms.
While the ministry says that the industry is constrained by lack of access to finance, which limits the competitiveness of the nascent local firms, it also lacks a legal framework.
The Rwanda National Construction Industry Policy, which was drafted in
2009, is yet to be approved.
Rwanda has been developing rapidly, in all fronts, in the last 17 years, with the construction industry playing a key role in the rapid economic development.
While the government’s relentless business reforms have encouraged foreign investors in the construction industry, local firms risk losing out to overseas companies in the process of bidding for tenders, especially road construction, if they do not strengthen their capacity.
The decision to set up a fund through Rwanda Development Bank, where local firms can access finance is creditable and will boost their competitiveness and increase the industry’s contribution to the country’s infrastructural development.
But the lack of a strong legal framework could undermine these efforts and hold back the country’s infrastructural development.
Relevant authorities should, therefore, expedite the National Construction Industry Policy in order to encourage professionalism within the industry.
This will help promote the best practices within the industry and ensure its contribution to national development.