19 July 2019

The Government of
Rwanda has extended deadline to sell off its stake in Cimerwa on the market to
July 19, (this Friday), in a bid to give a chance to more individual investors
and companies. This is according to a notice by Rwanda Development Board.

The initial
deadline was July 5 for interested investors to submit the proposals to buy the

The Government has
16.54% in Cimerwa held through Agaciro Development Fund, Rwanda’s sovereign
wealth fund. However, other shareholders, including SORAS Group, Rwanda Social
Security Board (RSSB), and Rwanda Investment Group (RIG) have also expressed
interest in offloading their shares.

The total share
held by the Government and its affiliates amount to 49%. In total, 17,228,878
shares are available for investors.

Currently, South
Africa-based Pretoria Portland Cement (PPC) is the majority shareholder in
Cimerwa with 51% shareholding which it bought back in 2012.

The firm had been
expected to turn around the cement industry but Government lost patience and
interest after the former failed to meet the domestic demand for cement.

While Cimerwa is
the largest cement producer in the country, but the firm is currently unable to
meet local demand as it operates below its production capacity of 600,000
tonnes per year.

Last year, Cimerwa
produced only 364,864 tonnes of cement – less than 60% of the total demand. The
country imported 318,854 tonnes to meet the demand of 640,455 tonnes, according
to statistics from the National Bank of Rwanda.

The company has
been making losses over the years. The firm accumulated losses worth Rwf7.4
million as of September 2016. In the following year, over the same period, the
firm’s losses stood at Rwf5.5 million and that increased to Rwf7.1 million in
September 2018.

Rwanda’s cement demand increased from 493,587 tonnes per year in 2013 to 640,455 tons in 2018 due to mega infrastructure projects like construction of Bugesera International Airport in Eastern Province, and Gisagara peat energy plant in Southern Province.

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