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New player enters Rwanda’s cement market
Kenyan cement manufacturer debuted into the Rwandan market promising competitive pricing in the local market with an aim to drive to growth and acceptability. According to the National Cement Company, the move was informed by the country's pace of development and infrastructure establishment in the country, creating an opportunity for supply. Narendra Raval, Chairman, Devki Group of Companies spoke to CNBC Africa for more.
Mon, 09 Nov 2020 12:27:07 GMT
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AI Generated Summary
- Devki Group of Companies enters the Rwandan market to offer competitive pricing and support infrastructure development.
- The company invests in expanding production capacity in Kenya and Uganda to meet growing demand in East Africa.
- Raval projects Rwanda's cement demand to increase and plans to invest $45 million in a local production setup.
Kenyan cement manufacturer, National Cement Company Limited, has recently entered the Rwandan market, aiming to provide competitive pricing and drive growth in the region. The move was prompted by Rwanda's rapid development and increasing infrastructure projects, creating a demand for cement supply. In an exclusive interview with CNBC Africa, Narendra Raval, Chairman of Devki Group of Companies, discussed the company's expansion plans and strategies amidst the challenges brought about by the COVID-19 pandemic. Raval highlighted the significance of Rwanda as a neighboring country in East Africa and emphasized the government's focus on infrastructure development and housing projects as the main drivers behind their decision to launch in Rwanda. The company's goal is to offer affordable prices to support both the government and private sector in building critical infrastructure during these challenging times. Despite the pandemic affecting global construction rates, Raval remains optimistic about the future of the cement industry in East Africa. Devki Group of Companies has invested significantly in expanding its production capacity in Kenya and Uganda to meet the growing demand for cement in the region. The company plans to export to neighboring countries like South Sudan, Ethiopia, and Rwanda from its expanded facilities. Raval revealed that the company has invested approximately $350 million over the past few years and aims to make East Africa self-sufficient in cement production to reduce the need for importing raw materials. Devki Group of Companies also strategically located its new plant in Nakuru, Kenya, to facilitate exports to Rwanda, making the process more efficient and reducing logistics costs. Raval explained that the proximity of the plant to the Rwandan border would enable faster loading and turnaround times for export orders. Additionally, the company's use of locally produced clinker in Kenya ensures higher quality cement at more competitive prices compared to imports. Raval projected that Rwanda's cement demand would increase to approximately 1.5 million tons in the coming year due to ongoing infrastructure development and export opportunities. To support its operations in Rwanda, Devki Group of Companies plans to invest $45 million in a local production setup to provide affordable cement options for the Rwandan market. Overall, Raval expressed confidence in the company's ability to succeed in Rwanda and contribute to the country's infrastructure and construction sectors.
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