Opportunity for investors: (2 projects)

Participations at $ 5,000 (USD) each, ROI 15% / year and after two years the total investment

will be paid back to the investor. Under controll of an independent accountant.

If you are interested in one or more of our projects below, please contact us.

Solid ROI on construction Real Estate business in Rwanda

The Case: Real Estate, offices, schools, storages

Rwanda is booming business following the Worldbank figures and other independent sources.

Please look at www.rwandachamber.org Summarizing some statistics: GDP growth 7%, inflation

6% (Rwandan Frank linked to the USD),

Worldbank figures Economic ranking out of 183 economies

Rwanda has no corruption, it is clean and safe with very good infrastructure and a UK based

legal system

In this country we created our company Rwanda Dream Homes Ltd. and took the initiative to

build affordable low- and middle cost houses, offices, schools.

We have two concepts, both very innovative for Rwanda and both at lower costs than local

constructions with concrete, bricks and cement. This basic material is very expensive in Rwanda

and most other material like steel, windows, sanitary, and more has to be imported.

For that reason houses are expensive in Rwanda and have long construction times.

A nice 140 m2 house is $ 150,000. 150 m2 terraced or 2 by 2 houses, 2 levels are sold for $

90,000 - $ 150,000

The official housing market demand is huge (study with support from the European Union.

Affordable housing is a key component in the city’s development strategy.

In total the estimate is over 400.000 DU’s (Dwelling Units & apartments). At least 80 %! of the

houses should cost between $ 3,000 - $ 50,000. That is our target group.

Our first concept is based on producing bricks / blocks with our own factory, using local clay,

sand and lime and using local components like tiles or metal for roofs, wooden frames for doors

and windows, imported sanitary.

Our second concept is based on steel frame, ceramic bricks & tiles, composite board material

and glass. We can combine both concepts for example by building a house with our local bricks

and a steel frame roof, prefab windows, doors, kitchen and bathroom.

In this paper we invite you to participate in the first concept.

We will start with an imported factory for bricks / blocks, using local material like clay, sand and

lime plus water. This factory can produce up to 12,000 bricks / week.

A standard brick is 29.5 x 14 x 9 cm with a weight of 7.5 kg. That is 33 / m2 for a 14 cm wall.

Alternatives are a 30 cm wall, 70 bricks / m2, a 10 cm wall, 23 bricks / m2. Special is a brick of 29.5 x 14

x 5 cm.

The bricks are Compressed Earth Blocks (CEB’s). This technologyb is known since the 18-th century.

Today after many hourts of science and experiences, and new hydrolic technology it is highly developed

and competing with fired bricks and sand-cement blocks. CEB is very sustanable and durable. The

environmental footprint for a 50m2 house is just 12 l. of diesel for a generator (or the equivalent of

electric power).

The quality of the bricks is very good, proven technology in countries like Germany, Austria, Belgium,

Portugal, Spain, France, Morocco, Comores Islands, Guyana, Mali, Sierra Leone, Tanzania, Uganda,

Burkina Faso, Cameroon, and starting a project in Burundi in January.

New Backlog Total Formal Informal Total

235.274 108.807 344.081 37.594 250.000 287.594 56.487 306.487

Supply

Demand Gap

Housing

ChallengeOverall Demand in Kigali 2022 Overall Supply (Current and Pipeline)

A brick is pressed at both sides of the 9 cm with over 20 tons and guaranteed for far more than 100 years

under the conditions that you use the right mixure of raw material, do not build in water but on a solid

foundation and with a good roof. (find document attached).

In Europe there is more and more attention for this concept because it is very sustainable, solid, and with

very comfortable living internal climate for temperature and humidity. In specific when you build a

bungalow with 30 cm walls.

If we build on a foundation as best practice locally from stones and cement, with a local

constructed roof and windows with wooden shutters (standard in rural areas and for poor

people) we can construct turn-key houses of 45 m2 ( 6 x 9 m), 3 rooms, for less than $ 3,000.

Single house

Simple, 3 rooms, toilet and two washing places with shower, all inside. Small storage. Cooking

place. Option: roof with ceramic tiles $800. Option: solar power panel: 120W for TV & Laptop

Charger, 3 x LED Lamps, USB Phone Charger $ 500. (Solar alternatives are available, starting at

$ 300 up to a 1000 W installation including 92 l. refrigerator, lights, antenna, chargers, for $

1200.)

The production process:

Sampling the soil, analyze and drying. Pulverize, grinder / crusher, sieving, mixing the clay-

sand-lime (or cement) and water, pressing the blocks, curing (14 – 30 days for the chemical

process), make the mortar and start masonry.

An in CEB specialized architect is designing the houses and other buildings.

The smallest factory offers work for 12 - 14 people of labor.

Under dry conditions we bring the hole factory to the constructing plot.

Double house

School

We can build luxury houses up to two levels between $20,000 - $ 100,000

With a roof from local ceramic tiles or steel. First level floor from concrete or wood. Foundation

from stones with cement or concrete. Frames with glass we must import. Same for prefab

kitchen with equipment, bathroom(s).

This type of houses are custom made.

The demand for affordable houses is huge. We can start building low cost houses on 4 ha.( 50

m2 – 80 m2), and 4 more luxury houses. The buyers have the land and money available. We will

work with solid international contracts (UK law).

Contacts with the government and some local constructors showed us a demand of over 5000

houses low cost houses ($3,000 - $ 50,000) on a short term.

Our margin will be, depending on the total costs of a house, between 15% - 60%

Initial investment about $ 150,000 (factory including trucks, all equipment, transport,

working capital plus training)

Invest in an egg-tray factory

Today all paper egg-trays are imported at $ 0,18 / each

The case:

An egg-tray factory for 5000 egg-trays / day:

Workplace 150 m2. Open ground for sun-drying: 200 m2

Raw material: Waste paper per day: 350KG

Water per day: 1000 l.

Power per day: 30KWH x8hours =240KW (only electric power needed)

Initial investment about $ 115,000

Revenue 5000 x $ 0.14 x 300 days = $ 210,000 / year

Total costs of revenue $ 72,100 / year

EBIT (estimate) $ 137,900 / year

Interest costs 15% of $50,000 (example) $ 7,500

Tax 30% of $ 130,400 $ 39,120 (*)

Net income $ 91,280

(*) There is no egg-tray factory in Rwanda. As a FDI you can reduce the tax over the first years.

Corporate tax is 30%, on dividend 15%. A flat fee of 5% of the CIF value of the factory

Break-even point:

Break-even point = 206,350 trays / year (17,196 / Month)

Max. Production is 5000 x 300 = 1,500,000 (125,000 / Month)

Safety margin is 1,293,650 trays on a yearly basis (107,804 / Month)

Start with fixed assets $ 95,000 plus $ 20,000 land.

Working capital first Month $ 5,000

Rwandan market:

About 300,000 commercial layers are producing 1,800,000 eggs / week. That is 1,800,000 / 30 =

60,000 egg-trays

Rwanda egg production is about 2,900 ton / year (Kenya 80,600 T, Uganda 23,100 T, Tanzania 37,700

T) (Report Minagri, July 2012). A process has started to multiply the egg production by 14.

A layer farmer with 10,000 layers needs 2000 trays / week.

Farm price of an egg (lowest) is RWF 55 (up to RWF 60). That is RWF 1650 / 30 eggs. Including an

egg-tray RWF 1750. Two broken eggs is more value than one egg-tray.