Rwandan Government to Sell Stake in its Cement Firm this Month
The Prime Minister of Rwanda, Edouard Ngirente said the country aims to put its 49 per cent stake in Cimerwa, Rwanda’s biggest cement maker, up for sale this month. Cimerwa, which is 51 per cent owned by South Africa’s PPC Ltd, has an installed annual production capacity of 600,000 tonnes.
Ngirente said “we have asked our partners if they are interested and the timeline is one month. By the end of this month we will auction (the stake)”.
He noted that PPC had yet to specify if it was interested in the stake, which he gave no valuation for, adding that other buyers would be sought if necessary.
A construction boom in Rwanda has driven up demand for cement as the government builds roads, power plants and a new international airport. Private developers have also been building new houses and office blocks.
The Chief Executive Officer of Cimerwa, Bhekizitha W. Mthembu told Reuters in July 2018 that demand for cement was growing at 7 to 8 per cent annually, as new building projects keep coming up. Rwanda also imports cement from neighbours Uganda and Tanzania.