Industry News

Rwanda’s Construction Industry to Hit $1.4bn in 2025

This growth is primarily driven by large-scale infrastructure projects.

Updated on

February 10, 2025

A section of Kigali City. (Photo: Courtesy)

Rwanda’s construction industry will hit a record $1.4 billion in 2025, up from $1.3 billion in 2024, according to an outlook from the African Export-Import Bank (AfreximBank).

Large projects in infrastructure development, including a $2 billion construction of Bugesera International Airport 25 km from the capital Kigali to its southeast, will drive this growth.

“The construction sector growth in the country will be driven by the new industrial strategy that focuses on the pharmaceuticals and ICT sectors,” the report reads in part.

Bugesera Airport, which will have a 130,000-square-metre terminal and a cargo terminal, can handle eight million passengers annually. At the same time, expansion in the future will see the airport’s capacity surge to ensure the facility meets growing demand.

Meanwhile, the AfreximBank report expects the East African construction market to grow from $48.1 billion in 2024 to $73 billion by 2028.

Key drivers of the growth include major projects like Tanzania’s standard gauge railway and the ongoing development of industrial parks in Ethiopia.

“The growth of the construction industry in African countries is expected to be supported by factors such as solid population growth, rapid urbanisation, commodity investment, and government-supported industrialization policies,” the report says.

As more people move to Africa’s cities, projects relating to infrastructure will become increasingly crucial to satisfy the demand for electricity, transportation, and buildings.

Chimmy Ogbuebile, Business Development Director at MP Infrastructure, also harped on addressing financing challenges for such projects.

“The issue being that financing comes at a high interest rate of 30% to 40%, he pointed out that multilateral banks should put in place instruments that facilitate private sector access to the needed financing.”

Despite high interest rates and global economic conditions, the construction industry in Africa remains one of the fastest-growing markets, with the continent’s total market value expected to double from $174 billion in 2024 to $378 billion by 2033.