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Industry constitutes about 20% of the GDP (of which 0.1% mining; 12.6% manufacturing; 0.5% electricity and water, and 6.5% construction in 1998) and together employs less than 2 percent of the population.
ManufacturingManufacturing value added remains relatively low at about 13% of GDP in
1998. Industrialization in Rwanda
started in 1978 and most of the manufacturing is small (with capital
investment of less than 1 million dollars), with some medium-sized enterprises
(Beer/soft-drinks, cement, and textiles).
Apart from coffee and tea, which constitute the base of a promising
agro-industry, other agriculture activities are far from being industrialized.
All other manufacturing units are producing for domestic consumption
and mostly are for import substitution. The revamp of manufacturing activities starting from 1995 was very slow:
only about 40% of the pre-war industries started their activities with most
producing at less than 75% of their capacities. However, since then, the output has been growing at a rapid
pace averaging 19% owing to the recovery of many factories particularly
beverages and cement which now have almost reached their 1993 levels.
Concerning the food industry: the major inputs of raw material to the factories are from domestic products and all the outputs are sold in the local market. Many of the pre-war factories are currently still not rehabilitated, e.g. oils, sugar, and tomato. The other factories namely chemical, textile, metal, non metal, paper, are mainly only processing industries which import more than 80% of raw material inputs. Energy
Currently, electricity production and distribution is by state a enterprise—ELECTROGAZ. There are four hydropower stations in the country: Ntaruka (11.3 MW), Mukungwa (12.5 MW), Gihira (1.8 MW), and Gisenyi (1.1 MW) and one thermal station in Gatsata (2 MW). Due to a substantial increase in the demand for electricity recently and some of the hydro plants need to be repaired and rehabilitated, there were some imports of 56.9 million kwh from Rusizi (I and II) stations, in the DR Congo in 1998. ConstructionRecently, the construction sector has been
increasing at a rapid rate of more than 20% annually especially in Kigali
City. This is due to the demand
for housing in urban areas and a large influx of returnees in rural areas.
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