Private sector pool resources; want to invest in cement, tea

A total of about 50 businessmen of the Northern Province turned recently legalised the Northern Province Investment Corporation (NORPIC) by appending their signatures to it’s articles of association. NORPIC is a joint venture in the making for the people of Northern Province. The event was preceded by a similar one a month ago at the same venue during which Frw947.5million total share capital subscription was pledged by the same businessmen and others to form the joint venture. NORPIC is made of 91 initial shareholders, with 1998 shares of total share pledge of 999 million. Legal document signedShareholders who turned up signed the legal documents before the Musanze District registrar (Notaire) Mr. Jonathan Ruhaya.The initiative is an elaboration of the provincial mini RIGs programme for Private Sector Federation (PSF) that involves mobilising Rwandans to pool resources to invest in high-end ventures that fetch very high rate of returns. It is in line with “enhancing entrepreneurship and business growth” priority of the federation’s four-year strategic plan. Similar ventures are being pursued in other provinces; WESPIC for Western Province, SPIC for Southern Province, EPIC for Eastern Province, and CHIC (Champions Investment Corporation) for traders operating in Mateo’s, Kigali City. Also present to witness the businessmen enforce their pledges was, the Private Sector Federation (PSF) 2nd vice president Josephine Mukamasabo who represented the federation chairman, the Northern Province PSF president Etienne Uwimana, the province executive secretary, Deo Kabagambe, the PSF director of entrepreneurship and business growth, John Bosco Kabagambe. The federation’s representation in the province; the Musanze Business Development Service (BDS) center and provincial PSF leadership are coordinating the initiative. Two committees; management and financial control will immediately be established, after which they will recruit technical staff to manage the day-to-day operations of the venture. Cement factory Betty Abatoni, the Musanze BDS center manager said the business community intends to inject their money in a number of projects but it will be in a cement factory first. With the booming construction industry in Rwanda, there’s apparently insufficient supply of cement. The price of the cement in Rwanda is now at Frw7, 800 a 50Kg bag, so high compared to regional prices. Most cement is imported from Kenya, Uganda and Tanzania. NORPIC investors are pretty convinced that injecting their Francs in a cement factory will enhance returns on investment in record time. “A business plan for a cement factory is in place….ready for implementation,” Abatoni. Invest in tea processing Another area NORPIC entrepreneurs is eying to building a tea factory in Mulindi. Abatoni said these businessmen recently visited Mulindi plantation and are determined to invest in a tea factory there after buying the plantation. NORPIC will definitely keep their monies in a bank…but only in bank that will be ready to give good offers. The investment in a tea factory, Abatoni said NORPIC intends to partner with the Development Bank of Rwanda (BRD) because agriculture, and specifically agri-business, is one of the strategic sectors the bank prioritises in financing. And, with other banks like FINA and Rwanda Commercial Bank (BCR), she said the businessmen target accessing their leasing product in addressing tea transportation challenge to the markets destinations. Businessmen are drawn from districts of; Musanze, Gicumbi, Gakenke, Burera and Rulindo. The minimum number of shares one can buy in NORPIC are three, whereas the maximum number of shares one can own is 20 per cent of the total paid up capital. The unit share value was revised down during the November meeting to Frw500, 000 from Frw1 million on businessmen’s request. Ends