1. National Urbanisation Policy and Digital Building Permits
In April 2025, Rwanda launched an updated National Urbanisation Policy alongside KUBAKA, a modern digital platform for building permit applications. The system replaced the older BPMIS, enabling investors, developers and professionals to apply for and track building permits online. By automating checks for land ownership, taxes, zoning and master plans, KUBAKA aims to reduce delays and enhance transparency in construction approvals. The rollout of the policy and digital system supports Rwanda’s urbanisation target of 70 % by 2050 under Vision 2050 and advances the Second National Strategy for Transformation (NST2).
2. Rising Material Costs Amid Construction Surge
Rwanda’s construction industry experienced rapid growth in 2025, driven by major government and private projects, including airports, roads and housing developments. This surge increased demand for materials such as cement, steel, sand and gravel, leading to sharp price increases and shortages. For example, iron bar prices nearly doubled, while bricks became significantly more expensive. Official data show that construction material costs increased across the year, pushing up the Producer Price Index for related products and contributing to sector value growth from USD 1.3 billion in 2024 to USD 1.4 billion in 2025. These dynamics reflect both the opportunities and challenges of managing a fast-expanding construction sector.
3. Ongoing Water and Transport Infrastructure Projects
Several critical infrastructure projects were underway as of late 2025:
Mabende–Rwufe Water Supply Upgrade: The Water and Sanitation Corporation (WASAC) progressed on a major pipeline project in Nyamagabe District, expected to deliver clean water to more than 48,000 residents and multiple schools. The initiative includes the installation of reservoirs, pumping stations and community water points, with completion scheduled by December 2025.
Kagitumba–Kayonza–Rusumo Roads Project: The African Development Bank approved additional funding for this strategic roads initiative, with construction set to resume in early 2026 and conclude by 2030. The project will improve connectivity in the eastern region, supporting trade and regional integration.
These investments illustrate Rwanda’s shift toward resilient infrastructure that supports both economic activity and community welfare.
