RIG foresees growth in profit

Rwanda Investment Group (RIG) says it anticipates posting significant profit this year due to improved local and global economic conditions. Owned by some 41 shareholders, RIG comprises of 6 institutional investors, 4 mid-sized private companies, and 31 individuals. In an interview with Business Times, yesterday, Fiacre Birasa, RIG‘s Director General, said the company is optimistic as its investments have benefited from global economic recovery. RIG reported a net profit of Rwf977.8 million earned last year. “The major difference this year is that we have been able to mobilize financing for some of our projects due to improved economic environment,” Birasa said. Referring to the company’s successful access to two different sources of financing this year that saw it access two loans valued at above $170 million, Birasa noted that this has boosted its investment plans this year. Recently, the African Development Bank (AFDB) approved a $30m loan to allow RIG’s subsidiary, CIMERWA, Rwanda’s largest cement factory to construct its planned energy-efficient 600,000 tonne capacity cement plant. This is in addition to obtaining a letter of credit from Kenya Commercial Bank (KCB) worth Rwf26 million. “Most of the money comes from CIMERWA because the majority of the other projects are still at initial development stage and not yet commercial,” Birasa observed without revealing the exact amount of the anticipated profit. The new cement plant, he said, will reduce cement prices and even allow Rwanda to begin exporting cement and create at least 285 jobs. The official also said CIMERWA has started using cost effective energy, peat, which will, in the long run, cut down its energy costs. He said RIG’s investment in peat production will help the company trim down energy costs after converting the current 100,000 metric tonnes plant to 80 percent peat and 20 percent fuel technology. RIG also has stake in Methane gas extraction project and the development of Kigali Industrial Park. Birasa said the company expects potential investors from abroad to partner with for some of their projects, including the peat production project. Ends

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RIG foresees growth in profit