Saturday, January 25, 2014

China in Rwanda: Big projects, jobs and skills for the locals


Rwandan President Paul Kagame fielding questions at The Governors' Summit 2014 at Great Rift Valley Lodge in Naivasha, Kenya on January 20, 2014 where he gave an interview on a wide range of issues, including the assassination of Rwandan defectors living in exile. PHOTO/SULEIMAN MBATIAH

Rwandan President Paul Kagame fielding questions at The Governors' Summit 2014 at Great Rift Valley Lodge in Naivasha, Kenya on January 20, 2014 where he gave an interview on a wide range of issues, including the assassination of Rwandan defectors living in exile. PHOTO/SULEIMAN MBATIAH 
 
By BERNA NAMATA The EastAfrican

In Summary
  • Through Chinese investments in the country currently estimated at $358.7 million with most of the investments in accommodation and food, Chinese firms have won major construction deals from both the government and the private sector.


Chinese firms are increasingly making inroads into Kigali, targeting mainly infrastructure projects.
Through Chinese investments in the country currently estimated at $358.7 million with most of the investments in accommodation and food, Chinese firms have won major construction deals from both the government and the private sector.

These include the construction of the soon-to-be opened five-star Kigali Marriot Hotel in which Chinese firm New Century Development is investing over $55 million.

While it will be managed by Marriott Group in accordance with a 30-year contract, the hotel is constructed and owned by New Century Development Ltd – a joint venture between Chinese investors (75 per cent) and a local partner (25 per cent).
New Century Development deputy chief executive and head of finance Solomon Adede said the Chinese investors are positioning themselves in virgin markets like Rwanda for the long term.
“The Chinese partnership has grown from the hotel to the training centre and they are committed to invest more,” Mr Adede said, referring to the ongoing construction of a training centre which will be managed by Marriott. NCD will also be constructing luxury apartments under the same project.
Mr Adede said the Chinese had to bring in skilled manpower at the beginning of the project. However, they have trained local staff over time.

“We are not on the same level of development with them. When we started the project, there were quite a number of Chinese coming in but as they trained, the number of locals increased. They are transferring that knowledge to us because more than 50 per cent (of the labour force) are Rwandans,” Mr Adede said.

More projects
In 2009, Beijing Construction Engineering Group (BCEG) won the tender to  build one of government’s key strategic investments – the over $300 million Kigali Convention Centre, a multipurpose arena that will host 2,600 people and a 292-room five-star hotel that will be managed by Radisson Group of Hotels.

In 2011, during a visit by China’s Vice-Minister of Commerce, Gao Hucheng, financial agreements worth $18 million were signed with the government. 
In the same visit, exchange letters were signed that could see the Chinese construct a Rwanda Government Administrative Complex under the Kigali City Roads Construction Project.
Included in the agreement are the Rwanda Agriculture Demonstration Centre at Rubona and the 150-bed Rwanda Polyclinic at Masaka Hospital.

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