Norfund set to stake in pyrethrum company

Norwegian Investment Fund for Developing Countries (NORFUND) is to acquire a 30 per cent stake in SOPRWA for $6m (Frw3.2 b).

Norwegian Investment Fund for Developing Countries (NORFUND) is to acquire a 30 per cent stake in SOPRWA for $6m (Frw3.2 b).

SOPRWA, a privately owned company, deals in processing of pyrethrum.

The company was bought from the government in 1999 for $1.5m (Frw817.5m).

“We have turned SOPRWA around since we acquired it. We constructed a refinery and renovated the factory. This accounts for the increase in the value of the company,” said Paul Muvunyi, owner of SOPRWA.

Muvunyi said the demand for pyrethrum, the most effective natural insecticide, has increased and this is why foreign investors are gaining confidence in the industry.
“There is a market for pyrethrum both locally and internationally and our objective this year is to triple production and increase quality. With more finances, it is possible,” he explained.

NORFUND is also set to lend money to the Commercial Bank of Rwanda (BCR) for the financing of small and medium enterprises. According to the managing director of BCR, David Kuwana, discussions are currently taking place.

NORFUND managing director, Roland Kjell, said they have been impressed by the investment climate in Rwanda.

Kananura Mbundu, vice chairman of the Private Sector Federation (PSF), said that it is becoming less costly to invest in Rwanda since energy and transport costs are decreasing.
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