South Africa’s largest cement firm Pretoria Portland Cement (PPC Ltd) has secured a majority stake in Rwanda’s only cement manufacturer CIMERWA.
The firm agreed to voluntarily contribute USD100, 000 to Agaciro Fund shortly after signing a deal in Kigali.
PPC Ltd will pay US$69.4 Million for a 51% stake in CIMERWA.
Clare Akamanzi, the CEO of the Rwanda Development Board (RDB) said that with the new deal, cement production will expand by up to six times in the coming years.
The current demand for cement in Rwanda is estimated at 350 000 tons per annum.
PPC will increase CIMERWA production from 100,000 tons to 600,000 tons to boost local capacity and exports by 2014, according to the deal.
“Coming to Rwanda is a vote of confidence,” said RDB’s Clare Akamanzi.
”The transaction is a further step in our committment to invest in Sub-Saharan Africa and we are confident about Rwanda,” said Mr Paul Stuiver, the CEO of PPC.
The cement giant PPC Ltd is just one of the many South African multinationals that have moved into Rwanda.
Leave a Reply