National Cement Holdings completes acquisition of CIMERWA in $85 million deal

On 25 January 2024 at 02:07

National Cement Holdings Ltd has officially completed the acquisition of 99.94% of shares in the CIMERWA factory for $85 million (Rwf107,963,175,000). The company, led by the Executive Chairman of the Devki Group, Dr. Narendra Raval, is committed to meeting the growing demand for cement in Rwanda and aims to eliminate the need for imports, making it readily available to the local population.

The acquisition, which was finalized on November 17, 2023, marked a strategic move by the National Cement Company to enhance CIMERWA’s production capacity from 270,000 to meet the rising demand in the region.

During a press conference on January 25, 2024, Dr. Narendra Raval emphasized the completion of the $85 million payment for the shares and announced plans for a further investment of $60 million to improve services and advance cement production capabilities. The primary objective is to reduce cement prices in Rwanda, making it accessible for every Rwandan to build their homes.

Dr. Narendra expressed a commitment to elevate CIMERWA to become a source of pride for Rwanda, ensuring that the country no longer relies on cement imports. He highlighted that the shares, acquired at $0.12 each, would likely see an increase in value in the near future.

Addressing the issue of regional competition, Dr. Narendra acknowledged the presence of cement from neighboring countries on the Rwandan market. However, he affirmed that the company’s efforts would gradually phase out imports and contribute to Rwanda’s self-sufficiency in cement production.

Dr. Narendra emphasized the company’s familiarity with the region’s challenges and commended the active leadership of Rwanda’s President in promoting self-sufficiency. Drawing from the success of their efforts in Kenya and Uganda, he pledged to collaborate with the government to ensure Rwanda no longer imports cement, prioritizing the country’s self-sufficiency over immediate profits.

Among others, Dr. Narendra Raval reiterated the company’s dedication to making CIMERWA a symbol of national pride and contributing to Rwanda’s economic resilience by reducing reliance on foreign imports.

National Cement Holdings has successfully acquired CIMERWA in $85 million deal.