Utilities of Rwanda

utilities2

Power

Electricity currently meets only about three per cent of Rwanda’s energy needs. The rest of the energy supply comes from biomass (2007), with per capita consumption remaining low. The state-owned Energy, Water and Sanitation Authority (EWA) was formed in 2010 through the merging of RECO (Rwanda Electricity Corporation) and RWASCO (Rwanda Water and Sanitation

Corporation). The Rwanda Development Board has designated the following as key areas for investment – methane gas to power, geothermal, peat to power, micro hydropower and solar. Currently in the procurement stages are the development of a 50 MW methane to power facility, a 10 MW solar power plant, two green-field micro hydropower plants and the rehabilitation and management of four micro hydropower plants. Exploratory drilling on three wells for geothermal resources to power project has been active since mid-July 2013.

 

Water

Rwanda’s Water and Sanitation Corporation (RWASCO) supplies water to Kigali City and all urban centres of Rwanda. Major problems with water pipelines in rural areas were reported by the World Bank in 2004. Local public–private partnerships were subsequently formed by RWASCO across Rwanda, to cover the management of 235 rural water supply systems, 28 per cent of the 847 systems in the country, by 2010. Partnerships also proliferate as non-profit providers move in to improve access to clean water, such as the Catalyst’s Rwanda Clean Water Project for families. SNV Netherlands Development Organisation facilitated 144 PPP contracts over four districts for 2013 in rural water and sanitation.

 

Telecoms

Although information and communication technologies in Rwanda are well established in urban areas, with fixed phone lines, mobile telephones and internet services, telecommunication penetration into rural areas is still relatively low. Telecommunications revenue contributes around 4.7 per cent of the country’s GDP (2007). Liquid Telecom and MTN dominate the mobile market as the largest companies in Rwanda’s liberalised telecommunications market. Data services are still in development (see box for a PPP that will bring 4G and cloud computing to Rwanda). A new ICT Technology Park is a government venture open for private investment – the Technopole will provide ready-access to hard and soft

infrastructure: connectivity, telecommunication services, energy, R&D facilities and business support services. Some two per cent of households have TV sets (2007). There are three personal computers per 1,000 people (2006).

 

Mining and agriculture

Mining, though not a traditional main contributor to Rwanda’s GDP, is now identified as a growth sector for private investment. The National Bank of Rwanda noted that in 2007 mining activities rose by 38.9 per cent. According to Rwanda’s Development Board, only about a quarter of potential output is being used. It has identified opportunities in quarries specifically useful for construction, such as those dealing with tin, tungsten, coltan, gold and various precious stones, including diamonds. The sector requires technological investment to advance. Significant peat deposits in the southwest of the country are being exploited at an increasing rate – peat can be used for electricity generation or processed into an alternative for firewood. Registered firms in the mining and mineral sector include Wolfram Bergbau, the Metal Processing Association, Natural Resources Development Rwanda, Bay View Group, Sinotrade, Pyramid International, Rwanda Metals, Rwanda Allied Partners and Africa Tangsten.

President Paul Kagame is also a strong advocate for private sector investment in agriculture as a means of increasing productivity and forge new markets. The Crops and Plants Business Development Board (Rwanda Development Board) is designed to implement private business involvement in growth, production and trade within agriculture. It wants to continue developing the traditional cash crops, tea and coffee, in addition to non-traditional horticultural crops and plants.