Portland cement to explore Rwandan market

East Africa Portland Cement Company limited, one of the pioneer cement manufacturers in the region, is set to start distribution of its products in Rwanda, Burundi and Democratic Republic of Congo according to John Nyambok the company Managing Director. Nyambok said that the company has opened a distribution agency here and two weeks from now they will launch their products officially. “We are joining the market because we want to try and solve the shortage of cement which has become a major constraint to the construction sector,” said Nyambok.The company intends to distribute 100,000 tonnes of cement to Rwanda annually. After fully establishing onto the Rwandan market, the Kenyan company will distribute cement to both Burundi and DRC to the tune of 50,000 tonnes per year. “We are looking at supplying 100,000 tonnes of cement because it is the current deficit the industry faces but with time we shall distribute more,” stressed Nyambok. Currently CIMERWA the country’s largest cement manufacturers produce 200,000 tonnes of cement per year. However, the price for their product was not revealed during the meeting with the entrepreneurs and were promised they would know it during the product launchBut its average price in Uganda, Tanzania and Kenya where the company operates is $200 per tonne and it is likely that it will cost the same amount or slightly higher in Rwanda due to high transport costs involved The company’s current overall production capacity stands at 1.3 million metric tonnes. Among the shareholders of the company national social security fund which owns 27 percent, the government of Kenya holds 25 percent shares, Cementia (LAFARGE) owns 14 percent and the public through Nairobi stock exchange own 6 percent. Its expansion into Rwanda is partly aimed at achieving the objective of increasing its export volumes. The domestic market consumes more of the product at 95 percent while exports into the region accounts for only 5 percent. In 2011, the aim is to export 20 percent and the domestic market getting the remaining 80 percent. Nyambok said that their vision is to be the regional leaders in provision of cement, innovative cement products and solutions. Ends