Kenyan firm acquires 47% stake in Rusororo quarry

Fusion capital, a Kenyan firm, has acquired a 46.5 per cent equity stake in Rusororo Aggregate Limited, the first commercial large scale aggregate mining company in Rwanda. The deal, worth $2m (Rwf1.3b), will help Rusororo Aggregate to improve it’s production processes, marketing and transportation of its products, Luke Kinoti, the Fusion Group chief executive said in a telephone interview yesterday.“We are looking to partner with the existing management team to take the business operation to a new level of efficiency and mechanisation,” he said. Kajuju Kageenu, the director of Fusion Rwanda, said the acquisition of Rusororo would boost the country’s construction sector, which is expected to record significant growth over the coming years as the City of Kigali effects a modern development master plan. “It is great to play a part in enhancing a business that is vital to Rwanda’s development objectives,” Kageenu said.She added that the investment by Fusion will help mechanise the quarry to increase its production capacity to over 100 cubic metres per hour to meet the country’s growing construction demand. Rusororo Aggregate is Rwanda’s only large scale operation, specialising in stone crushing for commercial purposes. The company is strategically positioned owing to its ownership of multiple sites in the region valued at Rwf27b. “We are delighted that Fusion has confidence in us. This investment allows us to increase output eight-fold, so the benefits are enormous,” Rusororo Aggregate management said in a statement.In 2011, the construction sector grew by 23 per cent. This trend is expected to continue in the short-to-medium term driven mainly by infrastructure development.

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Kenyan firm acquires 47% stake in Rusororo quarry