The shares were sold off during a ceremony held in Kigali on December 12. The two companies sealed off the deal in the presence of the Rwanda’s envoy to South Africa and officials of the Rwanda development board and representatives of other finance institutions.
The chairman of CIMERWA Ltd, Afrique Ramba said, the deal was welcomed as a way of creating a business relationship with the South African based company PPC.
“This substantial equity investment is a sign of strong confidence in Rwanda business environment and the social, economic and political progress we are making. CIMERWA is delighted to drive forward Rwanda’s goal of private sector led development” Ramba said.
While the CEO of PPC, Paul Stuiver, noted that deal will further steps of PPC’s commitment to invest in the sub-Saharan Africa despite the current challenges in Rwanda.
“We are very confident about Rwanda. The CIMERWA plant is located on in a challenging but very strategic region in east central Africa, which currently lacks significant cement production capacity, is a challenging but a very strategic one.
As part of their commitment to Rwanda’s development, the CEO of PPC handed over a cash cheque dummy worth $100,000 to the Agaciro development Fund- which is a solidarity fund, established in August 2012, to promote self-reliance and contribution of Rwandans towards their development goals.
CIMERWA Ltd has been in the country for almost 30 years. It has a current capacity of 100 000 tons of cement per annum and is constructing a 600 000 tons per annum plant that will be commissioned during 2014.
The cement company is also in the process of finalizing a US$104 million loan to complete the expansion project.
Current annual demand for cement in Rwanda is estimated at 350 000 tonnes. Based on the positive economic outlook for the Great Lakes region, cement demand on is projected to increase to one million tons during the next decade.
The PPC Ltd is the leading supplier of cement in southern Africa with cement manufacturing facilities and milling depots in South Africa, Botswana and Zimbabwe with capacity to produce eight million tons of cement per annum.
PPC also produces aggregates, metallurgical-grade lime, burnt dolomite and limestone. In addition to serving its domestic markets, cement and lime are also exported to other African countries.