Kenya’s Devki Group Empowers Regional Expansion with Purchase of 99.94% of CIMERWA Cement

Kenya’s Devki Group Empowers Regional Expansion with Purchase of 99.94% of CIMERWA Cement
Kenya’s National Cement Holdings is poised to take the reins at CIMERWA, Rwanda’s foremost cement producer, signaling a transformative shift in ownership. The strategic acquisition, announced on Friday, November 17, unveils National Cement as the new majority stakeholder, set to control an impressive 99.94% of CIMERWA through individual share purchase agreements with PPC International Holdings Proprietary Limited and Rwanda’s minority shareholders.
This development marks a significant milestone for Rwanda’s cement industry, as the country’s sole integrated cement producer transitions into the hands of National Cement, a dynamic player with a robust presence in East Africa and ambitious plans aligned with the region’s infrastructure development goals. CIMERWA, majority-owned by PPCIH, is set for a transition that promises not only increased production but also sustained growth under National Cement’s committed ownership.
With a 51% stake, PPCIH currently holds the majority share in CIMERWA, while the remaining 49% is distributed among minority shareholders, including Rwanda Social Security Board (RSSB), Agaciro Development Fund, Rwanda Investment Group, and SONARWA General Insurance Company Holdings Ltd. Over the years, CIMERWA has demonstrated notable improvements in operational efficiency and financial performance, thanks to the support of its leadership team and shareholders.
Regis Rugemanshuro, Chairman of CIMERWA, expressed enthusiasm about the entry of National Cement into the Rwandan market, anticipating a positive impact on production and overall growth. Rugemanshuro extended gratitude to current shareholders and affirmed CIMERWA’s dedication to building on past successes and enhancing its regional influence.
National Cement, a part of the Devki Group of companies, brings a wealth of experience from its diverse portfolio in cement, steel, roofing materials, fertilizers, and packaging materials. Operating integrated cement and clinker plants, as well as multiple grinding plants in Kenya, and a cement grinding plant in Eastern Uganda, the Devki Group is a key player in the East African cement industry. The acquisition of CIMERWA aligns seamlessly with the Devki Group’s expansion strategy and commitment to regional infrastructure development.
Dr. Narendra Raval, Chairman of Devki Group, emphasized a long-term strategic partnership with CIMERWA, expressing confidence in the business’s potential and eagerness to contribute to regional infrastructure development. Meanwhile, Roland van Wijnen, CEO of PPC Ltd, highlighted the completion of PPC’s strategy to refocus on core Southern African markets, expressing confidence in National Cement’s ability to fill the void left by PPC in Central and East Africa.
The transaction’s implementation is contingent on meeting or waiving conditions precedent typical of such transactions, with a targeted completion date by no later than February 29, 2024, as outlined in the official statement. Established in 1984, CIMERWA Plc brings four decades of experience as Rwanda’s premier integrated cement manufacturer, with its production plant located in Bugarama, Rusizi District, near the southwestern border of Rwanda.