Devki Closes Sh13.7bn Buyout of Rwanda Cement Firm

National Cement, a subsidiary of the Kenyan steel and cement giant Devki, has become the new owner of Cimerwa Plc after closing a deal to buy the Rwandan cement firm.

On Thursday, the company closed a Sh13.7 billion ($85 million) deal to acquire a 99.94% stake in the Cimerwa, pledging to make Rwanda cement self-sufficient.

The closing of the deal will result in the firm’s delisting from the Rwanda Stock Exchange, enabling the new owner to grow its cement production capacity.

Devki Group chairman Narendra Raval said in addition to the Sh9.7 billion ($60 million) investment they will make in the first year, the goal is to also improve service delivery, availability and affordability of cement in Rwanda.

“My company helped Kenya to stop importing cement over the past seven years, and we’ve achieved the same for Uganda. I promise to make Rwanda import-free, with the help of the government,” Mr Raval said.

This, he said, will be achieved by expanding the firm’s productivity and making cement affordable and competitive against external importers in the market.

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For more than 30 years, Cimerwa, which has enjoyed a dominant position in the market, has struggled to meet demand, forcing the country to import additional cement for its growing construction needs.

Despite having an annual installed capacity of 600,000 tonnes, Cimerwa’s production oscillates between 35% and 50%, hence its inability to meet the country’s demand.

National Cement now targets raising the plant’s production capacity to one million tonnes annually. The additional capacity is enough to meet Rwanda’s current cement demand, estimated at 600,000 tonnes a year.

However, this demand is set to rise with new megaprojects coming up across the country such as the new Bugesera International Airport and the upgrade of the Amahoro Stadium.

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With Rwanda’s acquisition, Devki Group’s cement production capacity is expected to reach 10 million tonnes a year, cementing its lead position in East Africa.

Mr Raval said his group is committed to supporting infrastructure development in the region in line with its strategic expansion ambitions.

“We want Rwanda to become a cement import-free country before the end of 2024,” he said.

(Exchange rate: 1 USD = Sh162)

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