In an exclusive interview, Mangesh Kumar Verma, Cimerwa's Chief Executive Officer, shared insights into the company’s 2024 performance, which was marked by a 13.9 per cent revenue increase to Rwf 117.3 billion. This growth was driven by a strong domestic performance and a remarkable 200 per cent rise in exports, alongside the strategic acquisition of Prime Cement. Verma pointed out that Cimerwa has successfully reduced Rwanda’s reliance on imported cement and emphasized the competitive nature of the local cement industry. Despite external pressures such as currency devaluation and rising costs, Cimerwa has reduced prices by over 10 per cent, helping make cement more affordable. The company has also invested in community development in Bugarama, focusing on education, healthcare, and environmental sustainability. Looking ahead, Cimerwa plans to expand production capacity by an additional 25,000 tonnes per month by mid-2025 and aims to further grow its export market, particularly in neighboring countries like DR Congo and Burundi. ALSO READ: Cimerwa posts 13.9% revenue growth in 2024 According to Verma, the growth of Cimerwa has had a significant impact on both the local economy and the cement industry in Rwanda, acknowledging its competitive nature and highlighting the effort to positively affect the market. “The biggest benefit to the local economy is that we have really tried our level best to reduce the import of the cement significantly by providing quality cement into the market and I’m happy to inform you, currently our combined production capacity of both plants can make Rwanda is self-reliant in cement,” he said. He also added that despite a 42-day shutdown for maintenance in early 2024, the company succeeded in reducing cement prices by over 10 per cent, even in the face of challenges like currency devaluation and foreign exchange pressures. In 2024, Cimerwa engaged with the local community in Bugarama through various initiatives aimed at improving the area’s well-being, as Verma outlined several key projects, such as community cleaning efforts, the operation of a community school, and support for agricultural markets by providing land for the local community. Verma also highlighted Cimerwa’s Corporate Social Responsibility (CSR) efforts, including the operation of an educational facility and healthcare services for the local community, particularly by training women and youth and providing them with sewing machines, making them self-employed. ALSO READ: Cimerwa plots further capacity expansion, new markets “Cimerwa is also involved in environmental initiatives, such as the Green Rwanda Project, where they aim to plant 7,000 palm trees this year, already reaching that target. These trees will later provide palm oil and kernels, benefiting the community while also contributing to the company’s sustainability goals,” he explained. In 2024, Cimerwa saw a notable increase in both production and sales. The company produced 633,000 tonnes of cement, reflecting a 14 per cent growth compared to the 554,000 tonnes produced in 2023. Along with this production growth, Cimerwa also saw an improvement in its gross profit margin, which rose from 30 per cent to 32 per cent. The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 3 per cent, bringing it to 30 per cent. In terms of market share, Cimerwa now controls approximately 57 per cent to 60 per cent of the local market and holds a dominant position in the export market, with 100 per cent market control in that sector. Cimerwa is also serving a healthy pipeline of major infrastructure projects such as the new airport in Bugesera and various projects amongst others, as Devang N Raval, chairman of Cimerwa Plc explained. “We are proud of this past year’s financial performance and we remain very optimistic that the optimisation of selling prices as well as distribution channels for both domestic and export markets will translate to an even better performance in the coming year,” he said ALSO READ: Cimerwa investors set for Rwf13bn in interim dividend payout He also added that sustainability remains an integral part of their business noting that they have put in place a strategy and roadmap to guide actions around ESG such as environmental protection and carbon footprint reduction. “In our journey towards net zero in the long term, we are building on the solid progress made over the last years including reductions of carbon dioxide emissions per ton of cement produced by over 20 per cent, and this has been made possible by efficient delivery of key levels of our decarbonisation strategy which includes reducing clinker factor increasing coal substitution with usage alternative fuels such as biomass and tapping into renewable energy solutions, he remarked. Another significant stride that Cimerwa made in its commitment to the green economy was increasing its use of alternative fuels. Its alternative fuel consumption rose from 15 per cent to 20 per cent over the past year, with a clear target of reaching between 25 percent and 30 percent in the current year. “What we did to have this improvement was driven by sourcing fuels from diverse suppliers and adopting modern technologies to lower energy consumption at the plant, and by ensuring its availability and using advanced technology,” he noted. Cimerwa's top management also wishes their valued customers, partners, and employees a Happy New Year. “May this festive season bring you joy, peace, and prosperity, and may the coming year be filled with new opportunities and continued success. We are grateful for your support and look forward to achieving even greater milestones together in the year ahead,” Verma said.
