Displaying items by tag: Rwanda

South Africa: PPC has reported a predicted 95% year-on-year decline in its sales of cement in South Africa in April 2020 due to the impacts of the coronavirus. Sales in Rwanda and Zimbabwe, where production resumed in mid-late April 2020, are expected to decrease in the month by 80-85% year-on-year.

PPC says that PPC South Africa is preparing to resume production in line with the government’s risk-based regulations announced on 25 April 2020. The group said, “The uncertainty around the further development of the containment of the coronavirus makes it necessary for PPC to work with various scenarios.”

Rwanda/Tanzania: Edenville Energy says it has signed a new contract to supply 6000t/month of washed coal from its Rukwa Coal Project to an end user that is expected to be a cement producer based in Rwanda. The deal has been agreed with Tara Group, which is a wholly owned subsidiary of Tanzanian company, Kitanyoe Group Company, which currently supplies coal, gypsum, limestone and calcite to industrial users.

The contract is of note to the development of Edenville Energy because it has the potential to open up a new transport route for the company’s coal on Lake Tanganyika to both Rwanda and Burundi. However, the proposed supply arrangement is dependent on the company securing sufficient operating capital to fund production. Edenville Energy operates a coal mine in western Tanzania.

South Africa: PPC’s sales have fallen due to poor sales volumes in South Africa and Zimbabwe. Its results were also negatively affected by ‘significant’ currency exchange effects between the South African Rand and the Zimbabwean Dollar. Its revenue decreased by 12% year-on-year to US$334m in the six months to 30 September 2019 from US$378m in the same period in 2018. Sales volumes fell by 17% to 2.6Mt. Earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 20% to US$58.6m from US$70.2m.

“The positive operational results in Rwanda and the Democratic Republic of the Congo have partially offset difficult and competitive market conditions in South Africa and Zimbabwe,” said chief executive officer (CEO) Roland Van Wijnen. “PPC has continued its efforts to implement necessary price increases to lay the basis for a sustainable domestic cement industry in South Africa.” In South Africa PPC blamed imports and blender activity for exacerbating a poor local market. It also noted that its fuel costs grew by 30% in the reporting period.

Kenya: Bamburi Cement’s first half profits have declined year-on year by 96% to US$0.22 from US$6.99m. Its Building for Growth strategy has seen the topline hold steady amidst setbacks to demand, including higher operating costs and reduced uptake from the Standard Gauge Railway, one of numerous infrastructure projects impacted negatively by rising tensions between Rwanda and Uganda.

Rwanda: The Rwandan government has extended the sale of its stake in Cimerwa to 19 July 2019 to give potential investors more time. The initial deadline was 5 July 2019, according to the New Times newspaper. The government and its related shareholders own a 49% stake in the cement producer. The controlling share in the company is owned by South Africa’s PPC.

South Africa: PPC says it plans to shut the kiln at its Port Elizabeth cement plant ahead of stricter requirements to the country’s emission standards. It is shutting down the kiln to meet new standards for NO₂ and dust emissions on 1 April 2020, according to Reuters. Around 30 jobs are expected to be affected by the shutdown.

The cement producer’s revenue rose slightly year-on-year to US$736m in its financial year to 31 March 2019. Its profit nearly quadrupled to US$10.2m. Its cement sales volumes also rose slightly to 5.9Mt. Sales and earnings fell in South Africa due to a poor market but they grew elsewhere in Sub-Saharan Africa, notably in Rwanda and the Democratic Republic of Congo.

Rwanda: South Africa’s PPC is considering buying the government’s stake in Cimerwa. Cimerwa chief executive Bheki Mthembu said that PPC Group is performing a share valuation excersise, according to the East African newspaper.
Soraya Hakuziyaremye, the Minister of Trade and Industry, announced the sale in mid-June 2019, after the divestment was first proposed in March 2019.

PPC already owns a 51% stake in the cement producer. The government owns a 16.5% stake and other shareholders include the Rwanda Social Security Board with 20.2%, Rwanda Investment Group with 11.5% and Sonarwa Group 0.8%. The entire 49% stake is currently for sale. Potential buyers have until 5 July 2019 to register their interest.

Rwanda: The Rwandan government has started to sell its stake in Cimerwa. It holds a 16.5% stake in the cement producer via the Agaciro Development Fund, Rwanda's Sovereign Wealth Fund, according to the New Times newspaper. Other shareholders, including SORAS Group, Rwanda Social Security Board (RSSB), and Rwanda Investment Group (RIG), have also expressed interest in selling their shares, making a total of 49% of shares available. The government originally intended to start the sale in March 2019. Potential buyers have until 5 July 2019 to register their interest.

Cimerwa produced 0.36Mt of cement in 2018, a figure well below its production capacity of 0.6Mt/yr. However, the country imported 0.32Mt of cement in 2018 to meet local demand. The company has also made a loss in recent years. The integrated plant is run by South Africa’s PPC, which has a majority stake in the firm.

Rwanda: Raymond Murenzi, the director general of the Rwanda Bureau of Standards (RBS), says that cement imported from Uganda in March 2019 was blocked because it did not meet minimum quality requirements. The imported product was found to be below the designated weight of 50kg, according to the New Times newspaper. Three trucks with 30t loads of cement from Hima Cement were prevented from crossing the border.

Previously, similar issues have occurred dating back to 2015 and the RBS has notified the supplier on each occasion. The company is then given 14 days to re-export the goods.

Rwanda: The government plans to sell its 49% stake in Cimerwa in March 2019. The 0.6Mt/yr integrated plant is run with South Africa’s PPC, which has a majority stake in the firm, according to Reuters. Prime minister Edouard Ngirente said that it would run an auction by the end of the month. He added that PPC had not yet said if it was interested in buying the remaining stake in the business.