Rwanda’s trade deficit in the construction sector is set to remain high at least in the short and medium term even after Cimerwa Ltd, the largest cement manufacturer, promised to satisfy the market and export the surplus.

Rwanda’s construction sector like other sectors of the economy is a net importer.

However, Cimerwa, has completed its new production plant in Western Province, which is expected to stop cement imports. The government said although the deficit will reduce, more investors into the sector are needed.

READ: Cimerwa flexes muscle to lock out cement imports

For example, last year the construction sector imported materials worth Rwf166.1 billion ($227.8 million) while the country’s exports remained at a paltry Rwf15 billion ($21.1 million).

In 2013, Rwf157.7 billion of imports were recorded while exports fetched Rwf20 billion.

“We still import significant volumes. The new Cimerwa production facility will improve the situation but the government continues to interest investors in this sector in order to reduce the gap,” said Robert Opirah, Trade and Industry Ministry official.

High trade deficit in the construction sector is partly attributed to a booming industry, leading to a high demand for construction materials most of which are manufactured outside Rwanda.

Construction sector last year grew by 6 per cent down from 8 per cent a year before even though it is one of the highest growing sectors.

Rwanda Patriotic Front, the ruling party, is one of the private investors that have made significant investment in construction companies — Ruliba Clays and East African Granite Industries — that are making tiles and bricks.

However, some of the locally manufactured products especially the Ruliba bricks are more expensive compared with the imported products which encourages imports.

Other domestic companies are Tolirwa, Afrifoam/Simaco, Uprotur, Master Steel, SteelRwa, Simaco, Ufametal and Safintra.

“Importing more goods causes currency instability for a net importing country especially due to fluctuation of a dollar which is used on the international market from where most third world countries import,” said Hannington Namara, country director of Trade Mark East Africa Rwanda office.

Mr Namara said more imports do not encourage production locally since domestic industries are in most cases outcompeted by cheap products.