Property Magazine Rwanda 10th edition

BUILDING FOR NATIONAL GROWTH AND DIGNITY

www.propertymagazinerwanda.com

Edition VOL. 10 10 JAN - APR 2019

MAGAZINE RWANDA

RSSB

US$200 MILLION TO CONSTRUCT

10,000 HOMES IN KINYINYA SECTOR

US$400 Million BOOST FOR KIGALI TECH HUB New investor injects vigor into Kigali Innovation city with $400m kitty

BRD / SHELTER AFRIQUE REVIVE $130 Million NYAMIRAMBO HOUSING PROJECT

PROPERTY BAZAAR 2019 Overview of a six day national Real Estate meeting and exhibition for Rwanda at CHIC Complex.

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Contents Page

Housing:

Pan African housing financier Shelter Afrique, BRD revive Nyarugenge district’s US$130 million low cost housing project

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Housing: New $150 million mortgage fund to debut by Early 2019

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ENTREPRENEUR: Rwanda turned out to be a golden opportunity for this global trailing spouse turned real estate entrepreneur

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PMR events Chic complex to host 2019 edition of Kigali property bazaar

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New regional varsity for modern medicine opens in rural Rwanda

ICT

New investor injects vigor into Kigali Innovation city with $400m kitty

Cement

41

New cement player makes US$70 million entrywith 1.2 million tonne plant

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Edition

DND TRIANGLE REAL ESTATE DEVELOPERS Ltd (DND DEVELOPERS)

Editorial // 2019

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10th Edition // Year 3

Hot properties on show at Kigali Property Bazaar 2019

PROPERTY MAGAZINE RWANDA EDITION PUBLISHED BY RG CONSULT INC

Happy new year!

T

he new year 2019 is with us. New year new things. Last year, Rwanda witnessed what amounts to tremendous growth of the property development sector. Experts contend that over 200,000 square metres of new space pipeline was under various stages of development in the last 2 to 3 years.

Real estate development takes a long term view at building pipelines due to fact that it is a highly capital intense sector. This means that it takes quite a while say over 3 years for a new development to come through the process of initiation, permitting, funding and marketing.

However, the good news is that through the upcoming KGL property bazaar 2019 developers who have worked tirelessly for last 3 to 4 years are able to show the result of their efforts by showcasing their projects in what is truly the only event specific to the sector.

The KGL property Bazaar 2019 to be held at the new swanky CHIC complex at downtown Kigali city is meant to kill several birds with one stone.

Over 10 new projects are expected to be show cased from some of the leading property development firms in the market.

The KGL property Bazaar 2019 to be held at the new swanky CHIC complex at downtown Kigali city is meant to kill several birds with one stone. For starters, the event is meant to link both demand which is huge with supply which is but a trickle in the market.

Kigali citizens are able to have a birds eye view of what is currently trending in the market. Showcasing what the market is providing in a new property in the market is one way of providing synergy needed in the market that has so much potential.

Networking for diverse stakeholders especially developers, suppliers, consultants and financiers for the purposes of discovering and learning is another objective of hosting the event. It is estimated that over 5,000 people are expected to participate in the week long event.

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• editorial staff Fred Oluoch-Ojiwah Collins Mwai Arafat Mugabo Ivan Mugisha • creatives & design: McGeorge Odokopira sales & marketing: Shema Jane Izere Mediatrice info@rgconsultinc.com • administration Arlette Irakoze • distribution Samson Condo • cover

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Read through and kindly give us feed back on your feelings and how we can strive to be better at what we do.

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NEWS BYTE 2

PMR NEWS FEATURE

New regional varsity for modern medicine opens in rural Rwanda

P

rices

for

Housing:

apartments

at the plush vision city estate in Kigali’s upscale

Prices for vision city homes

neighbourhood of Gaculiro

have dropped by 60 per cent exclusively for senior public servants who seek to own their first homes.

The development was announced in early October 2018 by Development

Rwanda

Board(RDB)

slashed 60% for civil servants

and

By Eugène Kwibuka

Ultimate Developers Ltd (UDL).

UDL is a real estate company fully owned

by

the

Rwanda

Social

Security Board (RSSB). The company developed the vision city housing project.

Eligible senior public servants will be able to buy a two, three or fourbedroom apartment at the estate at a subsidized price.

The University of Global Health Equity (UGHE) is located in Butaro, some 95km north of the capital Kigali. President Paul Kagame and Dr Paul Farmer unveil the plaque during the inauguration of the University of Global Health Equity in northern Rwanda on January 25, 2019. PHOTO | URUGWIRO

The University of Global Health Equity is located in Butaro, some 95km north of the capital Kigali. PHOTO | URUGWIRO

Under the new

arrangement , a

2-bedroom apartment will be sold to public officers at Rwf 63 million down from the standard price of Rwf108 million.

By Ivan Mugisha President Paul Kagame in late January 2019 launched a modern health science university that will train health professionals from around Africa and Asia.

A three bedroom apartment unit

he institution sits on a 100-hectare land that was

For those seeking to take a loan

given by the Rwandan government.

to buy a home at the estate, banks

While details of the cost of construction have not

shall give a loan at 11 per cent

been disclosed, the varsity was set up with funding

repayable over a period of 20 years,

which retails at

(about $188,300) will go for Rwf 94,000,000 while a

Rwf187 million (about $215,600), will cost a public servant Rwf108 million.

according to the announcement.

from Partners in Health, Cummings Foundation and the Bill A classroom at the University of Global Health Equity in Butaro, northern Rwanda. PHOTO | URUGWIRO

It adds that the equity contribution of 10 per cent normally required by

Acknowledging the importance of partnerships, President

local commercial banks for a normal

Kagame said: “We have collaboration on scientific research to measure the impact of health interventions, and continually

university professor at Harvard Medical School, said UGHE’s

improve the care that our citizens receive.”

location in rural Rwanda was ideal because that is where

UGHE offers a master’s degree in Science in Global Health

doctors are most needed.

Deliver as well as degrees in Bachelor of Medicine and

4-bedroom

apartment, that ordinarily goes for

T

and Melinda Gates Foundation.

Rwf163 million

mortgage loan will be optional.

Those who will fully rely on the bank

“It’s no accident that our campus is not in an urban city

loan 100 per cent will pay a little

A view of some housing units at Vision City. Nadege Imbabazi.

centre. We want our students to understand what it’s like to

more when it comes to servicing their

“Our next generation of doctors must understand the

deliver care in rural settings, yes, but more importantly to look

mortgage compared to those who

Explaining the rationale behind the

talent for the public service. It’s about

systems that drive social determinants of health, have the

beyond what they can learn in the classroom and the clinic,”

will make a personal contribution of

offer, the head of communication at

those who don’t have a home to

skills to strategically take initiative, and find solutions to

he said at the launch.

10 per cent toward the cost.

RDB, Sanny Ntayombya, said that

buy their first home at rates that are

barriers to service delivery,” said Dr Agnes Binagwaho,

The university will offer scholarships for the master’s students

Applications for acquisition of the

the scheme will help public servants

manageable,” he added. Selection

UGHE’s Vice Chancellor.

ranging between $49,000 and $54,000.

housing units shall be open for a

remain stable at their jobs as they will

and verification of eligible applicants

two week window in the month of

have a home at a relatively reasonable

is due to take place November 2018.

October 2018, according to UDL and

price.

RDB.

“It’s a way of retaining and motivating

Bachelor of Surgery.

Dr Paul Farmer, a co-founder of Partners in Health and a

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NEWS BYTE 3

K&U HARDWARE CO.LTD 2018

PMR events

2019

Chic complex to host 2019 edition of Kigali property bazaar

By Fred Oluoch-Ojiwah The Property Magazine Rwanda (PMR) in a strategic partnership with sector stakeholders has finalized plans to host a 6 day national real estate meeting and exhibition for Rwanda dubbed Kigali property bazaar 2019.

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he event to be held as from 18th to 23rd march 2019 at chic complex located in down town Kigali on KN 5 road, is designed by PMR and real estate sector stakeholders as a unique platform

CHIC complex, The venue

meant to provide insight, deal making, shopping delight and networking opportunities for Rwanda’s real estate and retail sector.

Event organizers RG Consult Inc is expecting 5,000 shoppers, 15 exhibitors and corporate partners and over 1,000 attendees.

PMR in partnership with RG Consult Inc. has designed the

PMR in partnership with RG Consult Inc. has designed the event to incorporate an objective of identifying new long term financing and related funding opportunities available in the market meant for Rwanda’s property market.

event to incorporate an objective of identifying new long term financing and related funding opportunities available in

offer exhibitors, attendees and other key stakeholders.

the market meant for Rwanda’s property market. The event

For instance, attendees will gather unique and specialized

is also meant to re-affirm confidence in Rwanda’s property

insights on new projects by developers on a first hand

development sector that has grown by leaps and bounds in

basis. Attendees will also get first- hand accounts of related

the last 10 years.

developments and similar events impacting Rwanda’s real

To be held under theme “big deals in the property sector”,

estate markets.

the event is meant to spur development of new projects in

Those attending will interact face-to-face with

what is without a doubt Rwanda’s key strategic development

top property developers, investors, construction specialists

sector.

and real estate experts. Investors interested in attending will also be able to discover

“The ongoing boom in Rwanda’s real estate sector under

Rwanda’s

new financing instruments and

products likely to shape up Rwanda’s real estate sector.

pinned by a strong economic fundamentals is fuelling a new wave of optimism and opportunity.”, Remmy Lubega

Another unique proposition is that attendees will gain a

RG Consult Inc CEO says adding that , “The Kigali Property

unique understanding of how innovation is transforming

Bazaar 2019 as Rwanda’s premier real estate gathering,

Rwanda’s future real estate and built environment sector.

will reveal how rapid changes in technology, leadership

As at going to press PMR can reveal

and skill in local property sector will provide a platform for

exhibitors and sponsors including some of the biggest

scalable and sustainable development in the sector”.

property development firms and financiers have expressed

RG Consult Inc says that the event has something new to

interest in participating in the event.

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NEWS FEATURE 1:

Edition

ICT

New investor injects vigor into Kigali Innovation city with $400m kitty

By Julius Bizimungu Rwanda’s premier tech hub project dubbed Kigali Innovation City (KIC) has received a huge

financial shot in the arm through announcement that a pan-African infrastructure investment firm Africa 50 is set to invest $400 million in the project’s on going construction phase.

T

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he commitment to fund on going

KIC’s

program

construction

was made during

the recent Africa Investment

Forum that took place in Johannesburg, South Africa, where the

African

Development Bank(AfDB) Group, one of the shareholders of Africa50 made the revelations.

$400 M AfDB reiterated the fact that its $400 million injection into KIC as one of the top deals signed in boardroom meetings

At the meeting, AfDB reiterated the fact that its

$400 million

KIC as one of the

injection into

She added that the government in

top deals signed in

its capacity as project promoter was

boardroom meetings

at side lines of

committed to fund the project’s core

the forum ,is meant to “help boost the

infrastructure

innovation ecosystem in Rwanda seen

building

as one of Africa’s top knowledge cities”.

meant to make the project more

components

such

as

of civil and electrical works

attractive to incoming investors.

KIC is designed as Rwanda’s leading

“KIC

is designed as a mixed-use

tech hub. Rwandan policy makers say

development where people can live and

that

KIC upon completion is meant

work. Upon completion, KIC is meant to

to be one of the major projects that

house commercial rental offices such as

Rwanda initiated to drive its ambitions

apartments and related hospitality and

of

retail facilities like hotels and commercial

becoming

a

knowledge-based

economy.

complexes in order spur development of

The project located at the Kigali special

a vibrant tech hub,” Ingabire explained.

economic zone

on a 70 hectare

The government has already carried out

plot and is valued at about $2 billion. It is

the financial modelling of the planned

designed to accommodate world-class

construction phase , highlighting that

universities,

construction of real estate component

sits

technology

companies,

biotech firms, and commercial and retail

will cost an estimated $315 million.

real estate facilities.

Rwandan policy makers say that KIC upon completion is meant to be one of the major projects that Rwanda initiated to drive its ambitions of becoming a knowledge-based economy.

It is designed to accommodate world-class universities, technology companies, biotech firms, and commercial and retail real estate facilities.

Rwanda’s ICT and innovation minister, Paula Ingabire, said

after signing of

the deal that the new investor

that is

seemingly set to take up equity position in KIC will focus on the real estate component of the project including setting up

retail and commercial

complexes.

$315m Construction of real estate component estimated cost

Africa50 as early stage equity investor is also meant as part of its commitment

With additional editing and context by PMR

to fund the set

editorial team

up of technology hub

of the project dubbed digital innovation precinct ; a major KIC component meant to house all the technology firms

and

residential facilities upon completion.

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Edition

AFFORDABLE HOUSING WATCH 1

Housing:

Pan African housing financier Shelter Afrique, BRD revive Nyarugenge district’s US$130 million low cost housing project

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14,000

people will be accommodated upon completion of this project The context of affordable housing provision in Rwanda can best be described as a case of huge demand being met by very limited supply. Authoritative studies commissioned

by Kigali city authorities and ministry of infrastructure indicate that Kigali needs huge stocks of affordable houses estimated that over 150,000 units and growing at over 25 percent annually.

One of the prominent studies dubbed the housing market

MD BRD, Eric Rutabana

study states that; “The quantity of housing production is still low and its cost does not match the purchasing power of the majority. Most city

residents still access housing through

informal practices, because the formal sector cannot offer housing access schemes which cater to all”.

The study adds that ; “ A number of circumstances result in the situation where most housing developments address only a minority of customers, among whom demand has not even been saturated yet”.

In response to the huge opportunity in the provision of low cost homes , Shelter Afrique and BRD entered into an investment partnership with Kigali City authorities

Our intervention will also focus not only on developers but will also look at down- stream home ownership issues such as cheaper forms of mortgages to homeowners who often rely on expensive commercial bank loans to own homes in the market”, says Karin during signing of the MOU.

The current status of the site of the proposed USD$150m affordable housing in Nyarugenge district, Kigali City

Efforts aimed at boosting the supply low- cost housing stocks in Kigali received a huge boost following the revival of a previously stalled US$130 million real estate housing project.

T

Rwanda Development Bank (BRD) reached consensus on

$130m

financial closure.

Real estate housing project

housing project

at Nyamirambo area in Nyarugenge district

is

now set to move to construction phase after Pan African housing financier Shelter Afrique and

The project site known to host one of the largest informal settlements in Kigali city has stalled for nearly two years due to the complexities arising from expropriation and financing.

Consequently, the project’s revival has sparked optimism of providing over 14,000 Rwandans with decent low cost

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entailed paying off occupants at project site, took longer than expected, thereby compounding further delays in planning process. Construction activities are expected to start early next year.

The proposed Rugarama park estate is aimed at building about 2,800 affordable houses on a 42 hectare Under terms of the investment partnership, the

plot.

City of

Kigali undertook to provide project site hence the planned

By Julius Bizimungu

he revival of previously stalled

CEO of Shelter Afrique, Andrew Chimphondah

and Rwanda Housing Authority to conceive a project in

expropriation which was meant to give rise to construction

Nyarugenge district meant to supply over 2,000 units upon

phase whose estimated cost was set at over US$130 million.

completion after a planned 3 year construction period.

Moreover, Rutabana explained that the design of the project

Signifying that financial closure of the project is done deal,

was revised and in the process

BRD CEO Eric Rutabana said; “We want it to be launched

hired separately to work on two project sites.

very soon.” The announcement came after the two investing

“We split the project site into two major plots

parties

met with Rwanda’s Minister for infrastructure,

contractor taking 30 hectares to be built at an estimated

Claver Gatete, and come up with a clear plan of starting full

cost of US$60 million while the second contractor taking

implementation of the project.

balance of 12 hectares whose estimated cost is yet to be

two different contractors with one

firmly established ,” he noted.

Andrew Chimphondah, the CEO of Shelter Afrique weighed

The project upon completion is expected to accommodate

in with financial closure of the project by saying: “Our

14,000 people

organization was carrying out restructuring of its internal

temporary and permanent jobs. Rutabana refuted claims that

processes. That is the reason why there was a delay in the

the final retail prices of the finished stocks of the project will

bigger stocks of

financial closure of the project. Now that we have completed

fall beyond the range of being termed affordable.

affordable housing stocks is something that will continue

the process, we are open for business, and part of that

“The finished stocks of basic units are meant to retail for

taking centre stage in actualization of Kigali city’s conceptual

business is to implement this huge public-private partnership

approximately Rwf 15 million

master plan where it is currently estimated that over 60

project.”

will retail for approx. Rwf 32 million”.

percent of city residents live in informal dwellings.

The BRD CEO added that the expropriation process which

accommodation. The issue of providing

in addition to creation of

hundreds of

while more advanced units

Additional editing and context by PMR editorial team

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COVER STORY

Edition

RSSB-led

10

N

Consortium to construct 10,000 homes in Kinyinya worth US$200 million

Views like the above will be changed forever by the upcoming real estate developments.

By Fred Oluoch-Ojiwah Rwanda Social Security Board (RSSB) is asserting its leadership position in the local property development sector by crafting and leading an investment consortium created to build 10,000 homes in kinyinya sector Gasabo district city of Kigali.

R

SSB says that the Kinyinya mixed use development

design firm – and the International Finance Cooperation

project consortium is created to offer sustainable

(IFC).

solutions needed in the sector in bridging the huge

Jonathan Gatera, RSSB DG says that the deal signed is

gap between huge demand for homes and falling

result of protracted negotiations with consortium members that lasted over 12 months following 24 months of project

supply in the market.

RSSB says that the

Kinyinya mixed use development

concept development by RSSB.

project estimated to cost US$200 million is partly focused on

“It’s an outcome of wider stakeholder engagement following

provision of affordable housing. The consortium that signed

concept development by RSSB. The project is meant to

an MOU for the project in September 2018

is composed

enable RSSB to cement its role in project development

of China’s broad homes industrial international, Rwanda

sector by taking a lead in its creation and development”, says

Development Bank, B smart technology – a research and

Mr Gatera.

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Our intervention will also focus not only on developers but will also look at down- stream home ownership issues such as cheaper forms of mortgages to homeowners who often rely on expensive commercial bank loans to own homes in the market”, says Karin during signing of the MOU.

construction such as building blocks are still on higher side.

In order to offer a solution, RSSB seems to have adopted this line of

new thinking of strengthening value chain in

the local property development sector

to drive costs by

assembling an investment consortium with a reputable builder armed with requisite capability of carrying out en mass construction.

The building partners assembled by RSSB are using rapid

on aspirations of

construction technology in the form of precast manufacturing

delivering bigger and cheaper forms of affordable housing

and construction to save on cost and time with intentions of

units in Rwanda there is need to strengthen value chain in

passing the reduction to end users.

the local construction sector given its week nature of delivery

Precast concrete that is adopted for use on constructing

systems.

homes in kinyinya site is a construction technique where

The local construction sector in its current form has not

concrete which is a key component of construction is casted

managed to deliver truly affordable homes needed given

in a reusable mold or form which is then cured in a factory

fact that construction costs especially inputs needed in

controlled environment and transported to site and lifted into

Experts contend that in order to deliver

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W W W . H O L M A S T R A D I N G S C O MEdition P A N Y . 10 COM place.

IFC is upbeat that given its planned interventions Rwanda

Done that way the technology is cheaper by more than

will be supported to build a viable affordable housing

20 percent and takes less time by more than 30 percent

industry in the country.

compared to traditional use of concrete that is poured into

Bo Huang, the vice president of Broad homes a leading

site specific forms and cured on site.

builder of mass homes in China, added that the deal will

In addition, given scale of the project in the local context,

address challenges that have previously hindered his firms

RSSB says that it brought in cheaper forms of long term

entry into local market as it de-risks the sector and avails

development finance

cheaper capital that would have otherwise been expensive

to enable financial closure of the

project through striking a deal with International Finance

to source.

Corporation the private sector development arm of World

“The signing of

Bank.

enter the local market by introducing cheaper technology

A combination of cheaper technology

by the project’s

this

deal makes it viable for our firm to

in housing technically known as

precast concrete

building partners and cheaper funding by IFC is meant to

manufacturing and construction that we have developed

enable RSSB to deliver truly affordable housing stocks in the

over a long period of time back home in China”.

market in next 3-4 years.

Karin Finkelston, IFC’s vice president for partnerships, communication and outreach, says that, among other things, IFC intends to intervene in the market by facilitating risk reduction by developers and by increasing scale of investment in the sector by supporting the development of bigger well conceived projects with scale like the Kinyinya mixed use development project.

“Our intervention will also focus not only on developers but will also look at down- stream home ownership issues such as cheaper forms of mortgages to homeowners who often

HOLMA

30%

the technology is cheaper and takes less time compared to traditional use

PRODUCTS

TRADINGS COMPANY

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rely on expensive commercial bank loans to own homes in the market”, says Karin during signing of the MOU.

INNOVATION TEAMWORK CREATIVE Tel : (+250) 783 756 849

$200m Estimated cost of Kinyinya mixed use development project invested

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19

NEWS FEATURE 2:

Cement

New cement player makes US$70 million entrywith 1.2 million tonne plant

Edition

10

In Summary • Prime Cement, a subsidiary of Angola-based Milbridge Holding Group, could dominate the Rwanda cement market if the 1.2 million tonne capacity plant is completed in the coming years.

• Construction of the first phase of the cement plant in Musanze Western Rwanda started in late August 2018.

• Prime Cement says the $70 million plant with a 600,000 tonnes capacity will be expanded to have a 1.2 million annual installed

capacity.

• The new entrant further promises to level playing field through reducing retail prices of cement to about US$8

About 46 per cent of the cement was imported. Analysts say while existing plants can meet local demand, they are operating below their installed production capacities, leading to supply gaps and raising the cost of cement.

Cimerwa PPC Ltd the dominant manufacturer , has a capacity to produce 700,000 tonnes, but analysts say it is operating at 60 per cent capacity. A str ggling Kigali

from current US$11 for 50 Kg bag those who will make a personal contribution of 10 per cent toward the cost.

1.2 M

Prime Cement says the $70 million plant with a 600,000 tonnes capacity will be expanded to have a 1.2 million annual installed capacity.

Cement Co Ltd — owned by Nairobi bourse-listed

By Arafat Mugabo “ The first phase of the plant will be completed in August —2019 the second phase will start in August 2020,” said VincentBudumbula managing director of Afriprecast- a corporate

T

shareholder to the new venture.

he ongoing construction boom has facilitated

Prime Cement says the first phase of the plant will be

entry of a new player in Rwanda’s cement

completed in July — in August 2019, The second phase will

manufacturing sector which is considered a key

start in August 2020,” said Vincent Budumbula managing

ingredient of local property development sector.

director of Afriprecast- a corporate shareholder to the new

Prime Cement, a subsidiary of Angola-based Milbridge

venture.

Holding Group, could dominate the Rwanda cement market

Once the new plant is complete, the country’s total installed

if the 1.2 million tonne capacity plant is completed in the

cement production capacity is set to increase by 62.5

coming years. The new player promises to level playing field

per cent from 800,000 tonnes a year to 1.3 million tonnes

in the cement making sector by among other things striving

annually. Data from the Ministry of Trade and Industry shows

to reduce retail prices of cement in the market. Construction

the country’s national cement demand reached 50,000

of the first phase of the cement plant in Musanze, Western

tonnes per month this year, which translates to 600,000

Rwanda started in late August 2018.

tonnes annually.

ARM Cement Ltd — which has a 100,000-tonne annual

Currently, cement makers grind pozolona with clinker

installed capacity, has only reached a production capacity

that is imported from Kenya and gypsum from Tanzania.

30 percent. The factory suspended their production this

According to Prime Cement, the quality of cement is

year due to a number of issues dodging its operations.

expected to be better as Rwanda’s pozolona has unique

Prime Cement is betting on increased production to

qualities compared with inputs from the rest of East Africa.

compete on pricing as it seeks to dominate the market.

“We plan to meet the current market demand and also

“We are committed to produce quality cement in Rwanda

cater to projected demand in the years to come,” Mr

and outcompete the already existing cement factories

Budumbula says.

through use of a smaller carbon footprint and less energy

Market analysts expect cement demand to grow sharply,

consumption,” said Francesco De Martino, CEO of

boosted by the government’s push on big infrastructure

Milbridge Group shareholder in Prime Cement.

projects and continued focus on affordable housing schemes. The Regional markets in Tanzania, Uganda

The cement factory will be constructed at the newly

and Burundi, especially those boardering Rwanda also

unveiled Musanze industrial park with prospects of

offer viable opportunities as cememt factories in those

creating jobs for the people in the sub-region and striving

countries are very far away.

to reduce the cost of a 50kg bag of cement to about $8

For instance, transporting cement from Tanga to Kagera

dollars from the current $11 dollars.

region increases the final cost of cement in Tanzania.

According to Mr De Martino the company is expected to

Prime Cement will use locally sourced pozolona — a

create 200 directjobs in the first phase and 500 jobs in the

major raw material used in production of cement. The

second phase including over 100 permanent employees.

deposits are found in Cyimunye sctor in Musanze district and this reduces production costs.

20

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21

AFFORDABLE HOUSING WATCH 2:

Housing:

CAREER CENTER Building

New $150 million mortgage fund to debut by Early 2019

An artistic impression of one of the new housing project in kigali

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22

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By Collins Mwai

The facility meant is designed to be a game change in provision of bigger stocks of affordable homes in the market through cheaper long term mortgages targeting lower income earners

T

he retail cost of mortgages in the country seen

of finance and economic planning(Minecofin) is set to be

as a critical component in boosting construction

aoperational by before early 2019.

and eventual supply of bigger stocks of affordable

The major objective of the new funding line from the multi-

homes especially in Kigali city could drop

lateral financier according to experts is that it is meant to

significantly in coming days as the government increases its

cushion the local mortgage financing sector in a way that

intervention in the local housing finance sector.

the mortgage subsector can positively impact on boosting

The issue of constructing and supply of bigger stocks of

supply of construction and supply of greater stocks of

affordable homes needed to adequately satisfy the needs

affordable

of majority of Kigali city residents with decent shelter will

medium and long term.

continue receiving attention of key public players in the

Analysts are quick to point out that the local mortgage

economy if recent efforts by key public organs is anything

financing subsector currently dominated by a few

to go by.

commercial banks are keen to offer expensive and short

Experts familiar with the matter say that a $150 million funding

term facilities thereby rendering

line from the World Bank Group specifically International

sector

Finance Corporation (IFC) and other arms of the multilateral

prospects.

lender that was requested and put in place by the ministry

In a bid to offer a sustainable solution, Minecofin has put in a

homes by private sector developers over the

the local mortgage sub

ineffective in boosting affordable housing sector

www.propertymagazinerwanda.com

23

PMR ENTEPRENUER OF THE YEAR

AFFORDABLE HOUSING WATCH 3: request to World Bank for a government

Bannyahe slum in Nyarutarama: a multi pronged approach is in place to rid kigali

backed loan facility whose proceeds

city of informal settlements including set of a multi million dollar mortgage fund

will be used to provide

cheaper,

longer term and therefore cost effective mortgages

whose cost and tenure

profiles is meant to be passed to the final end user which in this case is the owner of an affordable home as one way of strengthening value chains in the local housing sector.

The profile of a prospective owner of

13%

an affordable home owner targeted by the new government backed up facility is a worker within low income brackets.

Payment of between Rwf 50,000 to Rwf 75,000 per month over a 15-20 year tenure at affordable interest rates

Analysts paint the low income earner as a worker single or couple working within private or public sector or living as an entrepreneur earning approx. Rwf 150,000 to Rwf 350,000 per month.

This particular worker is profiled by

compounding

analysts as someone who is capable

provision of decent shelter to majority

market by about 30 per cent.

and is need of acquiring through

of Rwandans.

A major likely long term trigger of the

mortgage of a

Minister of finance and economic

latest move by government is that local

planning Uzziel Ndagijimana while

commercial mortgage financiers are

Rwf 7 million to Rwf 30 million with

breaking

new

very likely to rethink and review their

repayment of between Rwf 50,000 to

developments recently stated that

strategies in the market to match new

Rwf 75,000 per month over a 15-20

the proposed intervention is part of

realities as potential clients are prone

year tenure at affordable interest rates

concerted efforts aimed at boosting

to shift their focus to the new financing

ranging between 11 to 13 percent per

commercial prospects of affordable

firm fronted and funded by government

annum.

housings sector in line with national

that is keen on offering cheaper and

It is understood that the capital

housing policy.

cost effective alternatives.

home retailing and

available in the market

at between

the

the

challenges

news

of

the

in

prices of homes being supplied in the

proceeds of the new housing fund

“We are starting a new housing fund

Experts say that increased competition

will be used by government to set up

which we are going to use a seed

to be brought by the new player in

and operate what could easily pass

capital injection of $150million, a loan

the mortgage financing sub-sector

as Rwanda’s new mortgage financing

from the World Bank Group which

could improve the diversity of products

company

affordable

can be used spur development of at

in the sub-sector thereby

housing sector especially low income

least 6,000 homes. The money will

construction and by extension supply

earners .

be a revolving fund and will provide

of affordable homes in the economy.

The intervention comes at a time when

cheap loans below commercial rates

Rwanda Development Bank (BRD)

the housing sector in Rwanda has been

and combined with a long period for

CEO , Eric Rutabana, weighed in on the

plagued by multiple challenges in both

repayment,” he said.

issue by stating that there is need for

demand and supply aspects limiting

The latest move by government to set

putting in place long term affordable

chances of home ownership especially

up and operate a mortgage financier

financing mechanism to address issues

low income earners majority of whom

with an eye geared towards the

on the demand side of housing.

work in the country’s public sector.

affordable housing sector is in addition

“There is need for more private public

Currently, mortgage loans in Rwanda

to its previous major intervention meant

partnerships to address shortcomings

are in the range of 16 per cent interest

to strengthen value chain the housing

in the sector. The status quo in the

per annum or above

construction sector.

market has seen developers prefer

targeting

the

with shorter

The government

in early 2018 put

high end housing projects -often out of

is beyond the reach of potential owners

in place a multi- million dollar funding

of affordable

homes in the market.

mechanism meant to fund provision

This sort of scenario has continued

of basic infrastructure in mass housing

term”.

to create a market distortion further

projects to order reduce final retail

www.propertymagazinerwanda.com

Rwanda turned out to be a golden opportunity for this global trailing spouse turned real estate entrepreneur

By Fred Oluoch-Ojiwah

Rwanda’s real estate development sector can be said to be one of the most strategic sectors. The strategic importance of the real estate sector is seen through its capability to offer an economic stimulus to the local economy in a number of ways.

boosting

tenures of between 5 to 10 years which

24

ENTREPRENEUR:

R

wanda Development Board (RDB) estimates that

are mainly attracted by lucrative prospects across the wide

investors pumped over US$500 million last year

value chain that is slowly taking shape including brokerage

into the local economy adding over 800,000 square

and other value added services.

metres of new space within retail and commercial

Natalie

Campbell-Rodriques, founder and Managing

sub-sectors.

Director of brokerage and letting real estate firm Forest

reach for most Rwandans- as they are

Given the fact that the sector is newly built from scratch in last

Jackson Properties Ltd is a perfect case in point. She came,

promised

20 years, naturally one would expect new entrants into the

saw, sought and fell in love with Rwanda and immediately

sector. The hordes of new entrants especially entrepreneurs

chose to take a position in the local real estate sector.

better returns in the short

www.propertymagazinerwanda.com

25

Edition

PMR ENTREPRENEUR OF THE YEAR

A

former politician and director of youth in her native

Jamaica, Natalie spent the last 13 years being a trailing spouse and mother.

“Now that the children are not at home full time I decided to rebuild myself in a professional manner and real estate sector is my new calling”.

3.2 M Invested so far since

Natalie adds; “ I came to Rwanda as part of my family’s move for my husband’s job but as soon as I arrived the opportunity in the real estate market became very obvious. Within 2

provision of low income focused housing stocks in the

months I had opened the company as a one woman shop for

market.

several months. Back then we were called Forrest Jackson

Mortgages

Relocation Services”.

commercial banks are very expensive offering high interest

This gave way to Forest Jackson Properties Ltd. “We know

rates with short term tenures by nature and are thus geared

real estate and offer prompt, professional and ethical service”.

towards higher income earners.

in Rwanda being driven by a

coterie of

Natalie is cautious to state the value in dollar term equivalent she has pushed in the market but she is quick to say that: “We

This sort of distortion in the market has resulted in locking

still have a way to go to meet our earning target per annum.

out a vast majority of low income earners from owning decent homes. The net result arising from this market distortion is

The sector needs to be professionalized and be seen less like a sector for hustling. Real estate agents for our case need to be licensed and be held accountable for unprofessional and unethical practices

that a vast majority of Kigali city residents have to make do with living in informal settlements.

The

same

challenging

situation

despite

the

huge

opportunities applies to lack of qualified manpower needed to assist in carrying out mega housing sector projects. The Rwandan market is known to be in dire need of an army of land economists, architects, quantity surveyors, engineers among others.

We are on track for our 5 year goal but it seems so far away”.

I asked her to explain in her own words what needs to be

Rwanda’s real estate sector can best be described as being

done to move the sector forward.

at an adolescent stage. While the sector is yet to mature,

“The sector needs to be professionalized and be seen less

its current status

has its own set of challenges including

like a sector for hustling. Real estate agents for our case need

lack of skilled manpower and related technical gaps thereby

to be licensed and be held accountable for unprofessional

presenting a number of management weaknesses.

and unethical practices”.

A major highlight of current weakness lies in lack of provision

However, she is quick to explain that the sky is the limit for

of technical and professional services in the housing sector

those seeking opportunities in the sector.

value chain that holds huge promises in terms of providing

“My love for Rwanda is deep and surprising given how

services needed in supplying bigger stocks of homes to vast

different here is from my own Jamaican culture. I am happy

majority of Rwandans.

to be living in Rwanda at this time when she is growing and

For instance, lack of qualified mortgage financiers has led

flourishing. One can only imagine the awesomeness which

to a huge

will be Rwanda in the next decade”.

26

mismatch in supply and demand in terms of

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一 䔀 吀 唀 䔀

10

䌀唀刀刀䔀一吀䰀夀 倀䰀䄀夀䤀一䜀 䄀吀 㨀

一䔀倀吀唀一䔀娀 䈀䄀一䐀

圀䄀匀 䌀刀䔀䄀吀䔀䐀 䤀一 ㈀ ㄀㐀 吀伀 倀刀伀嘀䤀䐀䔀 䄀 䘀唀匀䤀伀一 伀䘀 吀刀唀䰀夀 䄀唀吀䠀䔀一吀䤀䌀 䰀伀䌀䄀䰀 吀唀一䔀匀 圀䤀吀䠀 䄀 䜀䰀伀䈀䄀䰀 䄀一䐀 䜀伀䰀䐀䔀一 吀伀唀䌀䠀 ⸀ 吀䠀䔀 䈀䄀一䐀 圀䄀匀 䤀一吀䔀一䐀䔀䐀 吀伀 䘀䤀䰀䰀 吀䠀䔀 䜀䄀倀 伀䘀 䌀刀伀匀匀 伀嘀䔀刀 䄀䘀刀伀 唀刀䈀䄀一 倀刀伀䘀䔀匀匀䤀伀一䄀䰀 䰀䤀嘀䔀 䈀䄀一䐀 吀䠀䄀吀 圀䄀匀 䴀䤀匀匀䤀一䜀 䤀一 吀䠀䔀 刀圀䄀一䐀䄀一 䰀䤀嘀䔀 䴀唀匀䤀䌀 匀䌀䔀一䔀⸀

吀䠀䔀 䈀䄀匀䤀匀 伀䘀 伀唀刀 䴀唀匀䤀䌀 䤀匀 吀䠀䔀 䌀刀䔀䄀吀䤀嘀䔀 吀圀䤀匀吀 吀伀 䠀䄀嘀䔀 䄀 唀一䤀儀唀䔀 䰀䤀嘀䔀 倀䔀刀䘀伀刀䴀䄀一䌀䔀 伀唀吀䘀䤀吀 䘀唀匀䤀一䜀 䄀 匀倀䔀䌀䤀䄀䰀 䤀一匀吀刀唀䴀䔀一吀 䌀䄀䰀䰀䔀䐀 吀䠀䔀 匀䄀堀伀倀䠀伀一䔀 䤀一 伀刀䐀䔀刀 吀伀 䐀䔀䰀䤀嘀䔀刀 伀唀刀 吀唀一䔀匀 匀伀䴀䔀䔀 吀䠀䤀一䜀 圀䠀䤀䌀䠀 䔀䰀唀䐀䔀䐀 吀䠀䔀 䴀䄀刀䬀䔀吀 䄀吀 吀䠀䔀 吀䤀䴀䔀⸀

圀圀圀⸀一䔀倀吀唀一䔀娀䈀䄀一䐀⸀䌀伀䴀

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27

PROECCO

Responsive Construction Material Production

Implementation

A programme of

“The 8-in-1 Affordable Urban Housing Demonstration Block continues Switzerland’s longstanding commitment to support Rwanda in developing strong construction sector value chains.”

BUILD BETTER, BUILD LOCAL.

Ralf Heckner, Swiss Ambassador to Rwanda

Affordable Housing Made in Rwanda “With an estimated demand of 300 new urban buildings and dwellings units per day, Kigali and other Rwandan cities need local building materials to replace the costly imports that contribute to high housing prices,” says MarieChantal Rwakazina, Mayor of the City of Kigali. If achieving affordability means making the most efficient use of Rwanda’s natural resources (building materials and land), a logical answer to the affordable housing conundrum would be to maximize the number of urban storied housing solutions made of environment-friendly locally-sourced materials.

Enter the 8-in-1 Affordable Housing Demonstration Block. Designed and constructed within the framework of the Swiss Agency for Development and Cooperation’s PROECCO Programme (Promoting off-farm employment and income through climate responsive construction material production), the 8-in-1 Affordable Urban Housing Demonstration Block – a storied urban house built entirely with locally-sourced bricks and blocks – demonstrates the potential of the local construction industry to deliver quality urban affordable housing solutions made in Rwanda for Rwandans.

With simple construction details and construction costs below 250 USD per square meter (excluding land and engineering services), the 8-in-1 Affordable Urban Housing Demonstration Block is a welcome addition to a housing market challenged by a shortage of cost-effective building solutions. For Mayor Rwakazina, “the house serves as a proud demonstration that the Made in Rwanda brand can deliver good quality, affordable housing solutions at below 20 million FRW per unit.”

“PROECCO continues Switzerland’s longstanding commitment to support Rwanda in developing strong construction sector value chains that can generate employment and contribute to building safe and habitable cities for future generations,” says Ralf Heckner, the Swiss Ambassador to Rwanda. With the fastest rate of urbanization in the world, the Great Lakes Region is in need of thousands of skilled brick makers, architects,

Property Magazine Advertisement.indd 2

1/10/2019 6:19:38 AM

Property Magazine Advertisement.indd 3

1/10/2019 6:19:45 AM

engineers and masons to build buildings that can serve the growing population. With more than 150 jobs created during its construction, the 8-in-1 Housing Block highlights the sector’s capacity to generate employment for workers all along the supply chain.

THE BRICK

1801

2017

United Kingdom

Kigali, Rwanda

In Rwanda, the transformation of Kigali and the 6 Secondary Cities into economically viable poles of growth, is both an economic and urban development strategy. Densifying neighborhoods to accommodate new urbanites in safe and affordable homes remains high on the government’s priority list.

The standard dimensions and smooth surface of mechanically extruded Rowlock Bond bricks are suitable for facing brick walls, which can consume less cement mortar than other walling types

The PROECCO project is a partnership between Switzerland and the Rwandan Government. Skat Consulting Ltd., a Swiss independent resource center and consultancy specialized in the design and application of appropriate technologies, implements the project in cooperation with the Rwanda Housing Authority.

The good news is that the private sector has answered the call. Inspired by PROECCO’s Swiss Cube (Gikondo Expo Ground,2017) and the 8-in-1 Affordable Urban Housing Demonstration Block (Kimisagara, 2018), developers like RECOBUILDERS Ltd. are investing in affordable housing solutions built with local bricks and blocks. With nineteen 3-storey 4-bedroom units under construction on a sloped site in Kanombe Sector, Kicukiro District, RECOBUILDERS has scaled-up the flexible PROECCO prototype, creating a residential community with space-saving storied houses equipped with private yards that can be used as garden or parking.

Not only do the houses, which adopt the cost-saving RCC reinforced rowlock bond cavity wall system, meet all building standards, they respect the density and green city concepts espoused by the City of Kigali.

Modern Brick Construction Systems Research conducted by the PROECCO project confirms that Rwanda’s laterite-covered hills generate a nearly inexhaustible high-quality clay deposits, meaning that the country’s entire urban demand for walling material – which amounts to nearly 1 billion bricks and blocks per year to feed Rwanda’s rapidly growing cities – could feasibly be met with modern Rwanda-made clay products.

The 8-in-1 Affordable Housing Demonstration Block capitalizes on this by adopting the RCC reinforced Rowlock Bond cavity wall system, a cost-effective solution that can reduce costs up to 40% by consuming less cement mortar. Dating back to the United Kingdom’s second industrial revolution, the Rowlock bond wall has a long history, not only as an economical walling system, but as a major catalyst for the brick industry. In response to rapid urban growth, the labor-friendly, cost-effective cavity wall system was a boon to a growing construction industry facing massive rural-urban migration. Not only did it permit the construction of storied urban buildings with lower price points, it allowed the city to densify and provide decent housing for a maximum number of people occupying a limited amount of space in the heart of burgeoning cities.

In recent years, the Rowlock bond walling system has continued to be appreciated for its efficiency and costeffectiveness. Most recently, the RCC reinforced version of the cavity wall system has regained popularity in Nepal following the 2005 earthquake. With more than 125,000 houses destroyed, the Government of Nepal recommended the RCC reinforced cavity wall technology as the primary building system to be used during reconstruction, in large part due to its strong paraseismic performance. When paired with extruded ceramic slabs (Maxpan) floors, the technology becomes especially attractive for providing low-cost, easy-to-build, built-to-code, storied building solutions for dense urban environments - a winning combination that helped transform Kampala into a multistoried city.

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City Transformation

THE BLOCK

For improved speed and efficiency, builders can opt for the PlanFill block, an extruded clay block that can stand in for a 3-brick Rowlock Bond module

Workers Affordable Properties (WAP) LTD, a property development company, has also jumped on board with a plan to build 10,000 affordable housing units for middle- and low-income earners in Kigali over the next five years. Homeowners will choose from 5 different typologies, each one based on the principles of the PROECCO Rowlock Bond multiplex housing typology.

THE WALL

When reinforced, the 21 or 27.5cm loadbearing Rowlock Bond cavity wall construction system is recognized for its strong paraseismic performance

© RECOBUILDERS Ltd.

For the Government of Rwanda and its partners in the Swiss Agency for Development and Cooperation, the momentum created by the 8-in-1 Affordable Urban Housing Demonstration Block is an important one, as it announces the strength of the Made in Rwanda concept as a major driver of industry and urban development.

STRETCH

left: 27.5 cm RLB wall

SPLIT

The PROECCO multiplex housing prototype is inherently flexible: it can be stretched, split, stacked and assembled according to specificities of the site (flat, sloped, etc).

SPLIT ON A SLOPE

THE SLAB Combined with precast RCC beams, ceramic block slabs offer quick, easy and cost-effective floor and roofing solutions

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© Workers Affordable Properties, Ltd.

Top Left: Early Rowlock Bond Duplex House in the UK, 1801 Top Right: PROECCO Duplex Housing Prototype, 2017 Middle Top: Detail of RCC Reinforced Rowlond Bond Cavity Wall Middle Bottom: Triplex houses by RECOBUILDERS, Ltd. Bottom: Duplex Rowhouse typology by WAP Ltd.

Property Magazine Advertisement.indd 5

STACK ON A SLOPE

An infinite number of combinations are possible, from the stacked 8-in-1 Block in Kimisagara, to the adjacent triplex or duplex units from RECOBUILDERS and WAP Ltd.

1/10/2019 6:19:48 AM

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