Among sub-Saharan nations Rwanda’s strong economic growth, relatively high ranking on the World Bank’s Ease of Doing Business Index and low ranking on corruption make it an attractive destination for investors. GDP growth topped 6 percent in 2017, up on 2016 due to improved global economic conditions and higher commodities prices. Growth is set to continue in 2018.
Construction is key to Rwanda’s ongoing economic recovery. The government is keen to attract global construction investment and has increased investment for infrastructure expansion and modernisation.
The growth rates of both construction, 10 percent in 2017, and real estate, 7 percent, provide optimism. Major schemes in the pipeline include the proposed USD800m international airport at Bugesera, which will provide extra capacity for passenger transport and freight. The Rwandan and Tanzanian government have also agreed to jointly construct a railway between Isaka and Kigali linking Rwanda to the major port of Dar es Salaam. The scheme is estimated to cost USD5bn. Investment is also being made in the natural resources and mining sectors.
|Cost escalation 2017–18:||3.6%|
|Cost escalation 2018–19:||2.0%|
|Location factor (USD):||52.1|
Overall the future looks positive in Rwanda. Urbanisation and a growing population are the main drivers of construction, both are generating pressure to build new infrastructure and housing.
This content is part of the International construction market survey 2018