Devki Sh13.7bn Deal Sees Takeover of Rwanda Cement Firm
The Devki Sh13.7bn Deal marks a major milestone in East Africa’s cement market. The Kenyan conglomerate finalised its takeover of Rwanda’s largest cement producer, Cimerwa.
Devki Cement Investment in Rwanda
In a bold move that underscores its regional expansion strategy, the Devki Group of Companies has finalised the “Devki Sh13.7bn” deal to acquire Rwanda’s biggest cement producer, Cimerwa. The acquisition, spearheaded by Devki’s cement subsidiary, National Cement Company (NCC), signals a shift in the competitive dynamics of the Rwanda cement industry and reflects the company’s ambition to cement its footprint across East Africa.
This development gives Devki a stronghold in Rwanda’s cement sector and boosts the region’s production capacity, fuelling hopes for cement self-sufficiency in Rwanda after the Devki acquisition. As East Africa’s demand for cement continues to surge—driven by infrastructure projects, real estate, and industrial development—this deal could be one of the most significant strategic investments in recent years.
A Longstanding Interest in Regional Expansion
The Devki Group has steadily expanded its cement production capacity in Kenya and beyond for years. The Devki Sh13.7bn Deal is a culmination of the company’s long-term vision to dominate the cement space in East Africa.
The group’s cement arm, National Cement Company, already operates in Kenya and Uganda. By acquiring Cimerwa, Devki gains entry into the Rwandan market, making it a key player across three East African nations. This aligns with the National Cement Company’s regional expansion strategy, which focuses on increasing production volumes, strengthening regional supply chains, and reducing import dependency.
Details of the Transaction
The Devki Group completes the Sh13.7bn acquisition of Rwanda’s Cimerwa by purchasing a controlling stake previously held by PPC Ltd, a South African cement firm. According to reports, Devki acquired over 70% of Cimerwa, giving it majority ownership and decision-making power.
- Valuation: The deal was valued at approximately Sh13.7 billion ($106 million).
- Ownership Structure: Devki now becomes the majority shareholder, with the Government of Rwanda retaining a minority interest.
- Production Capacity: Cimerwa’s production capacity is 0.6 million tonnes annually, which, when combined with Devki’s other facilities, significantly enhances the group’s regional clout.
By integrating Rwanda into its portfolio, Devki strengthens its ability to balance supply and demand while ensuring more competitive regional pricing.
Impact on Rwanda’s Cement Industry
The Cimerwa cement acquisition comes at a critical time when Rwanda is striving for cement self-sufficiency. Historically, the country has relied heavily on imports from neighbouring countries, which makes cement more expensive and limits local construction growth.
With Devki’s entry, several key outcomes are expected:
- Stabilized Prices: Analysts predict that the impact of Devki’s buyout on Rwanda cement prices will result in reduced costs due to increased local supply.
- Improved Supply Chain: Devki’s experience managing large-scale cement production enhances supply chain efficiency across Rwanda.
- Industrial Boost: The acquisition supports Rwanda’s industrialisation agenda by reducing import reliance.
The move also strengthens the cement production capacity in East Africa, creating healthier competition among major players such as Dangote Cement, Bamburi Cement Ltd., and Hima Cement.
Devki Cement Investments Beyond Rwanda
Devki has always been aggressive in its investment strategies. Beyond the Devki Sh13.7bn Deal, the company has invested billions in Kenya’s Athi River, Kajiado, and West Pokot plants, alongside Uganda.
With the acquisition of Cimerwa, Devki’s cement investment plans in Rwanda 2025 are expected to include:
- Expanding Cimerwa’s production to match rising demand.
- Introducing more advanced technologies for energy efficiency.
- Creating jobs for Rwandans while transferring technical expertise.
- Exploring opportunities for export to Burundi and the Democratic Republic of Congo (DRC).
Such investments will uplift Rwanda’s cement sector and solidify Devki’s position as a regional powerhouse.
The East African Cement Market Dynamics
The East African region is experiencing unprecedented infrastructure growth, from road projects and housing developments to energy and industrial construction. Consequently, the demand for cement has been steadily climbing.
How Devki’s Rwanda acquisition strengthens East Africa’s cement market narrative fits perfectly into this regional growth story. By having a direct presence in Rwanda, Devki can:
- Ensure that the supply meets the growing construction boom in Rwanda, such as in Kigali and secondary towns.
- Reduce transportation expenses, which previously inflated cement prices.
- Consolidate its role as a major player in achieving cement self-sufficiency in Rwanda after the Devki acquisition.
This acquisition also places Devki in direct competition with pan-African cement giants, further driving innovation and efficiency in the sector.
Challenges and Considerations
While the deal looks promising, Devki faces challenges integrating Cimerwa into its wider operations.
- Operational Upgrades: Cimerwa will require significant capital investment to modernise its facilities.
- Market Competition: Competing with global players like Dangote will test Devki’s ability to balance pricing and profitability.
- Regulatory Framework: Devki must navigate Rwanda’s regulatory landscape, including environmental and labour compliance.
Still, given Devki’s track record, the group is expected to adapt and thrive in the Rwandan market.
What This Means for Rwanda’s Economy
The acquisition is more than just a business deal; it’s an economic milestone. For Rwanda, it represents:
- Reduced Import Bills: Less dependency on foreign cement.
- Job Creation: Direct and indirect employment opportunities in the cement and construction sectors.
- Industrial Confidence: Attracts further foreign direct investment (FDI).
Thus, the Devki Sh13.7bn Deal is a win-win situation for Rwanda and the Devki Group.
Conclusion: A Transformational Step
The Devki Sh13.7bn Deal is more than just an acquisition; it’s a transformative step toward reshaping the Rwanda cement industry and boosting the region’s production capacity. For Devki, it is a bold confirmation of its National Cement growth playbook: securing regional dominance through aggressive investments.
As the situation develops, industry observers will closely monitor Devki’s ability to meet its commitments to provide affordable cement, create jobs, and promote regional self-sufficiency. What’s clear, however, is that the acquisition has firmly placed Devki among the giants shaping the future of construction in East Africa.
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