RIG investments grow to $25.1m

Rwanda Investment Group (RIG), a company made up of 41 local investors has increased its investments in the country to $25.1 million (Frw13.8 billion) in two years.

Rwanda Investment Group (RIG), a company made up of 41 local investors has increased its investments in the country to $25.1 million (Frw13.8 billion) in two years.

Information attributed to Marie Claire Mukasine, the Director General of RIG, indicates that with its capital valued at Frw13.8 billion, the company helps to build the country’s economy through numerous initiatives.

Currently RIG portfolio includes the manufacturing sector, power sector and property development.

In December 2006, RIG took over Cimerwa, the country’s largest cement factory through privatization.

The factory now has a capacity of 100,000 tonnes of cement per year and due increased demand of cement resulting from the country’s booming construction sector, Mukasine said they are to acquire a new plant with a total capacity of 600,000 tonness of cement a year.

The company (RIG) is also venturing into two power projects which include the methane gas and peat.

The Extraction of the Methane gas in Lake Kivu is in advanced stages with Mukasine saying that pilot project is underway in order to extract and generate 3.6MW this year.

This follows the signing of a Gas Concession Agreement (GCA) for 50MW. Another  Memorandum of Agreement (MOA) for power purchase with the Government of Rwanda was also signed.

According to Mukasine , RIG is in discussions for a joint venture for a development of 100MW project.

In year 2007, the company decided to invest in peat production and other projects related to peat.

The peat production project is mainly developed to provide a cheap source of energy to Cimerwa Ltd and other industries such as tea factories.

Peat is abundantly available in Rwanda and neighboring countries, and provides an alternative cheap source of energy as opposed to fuel oil.

In additionally, RIG is part of the Kigali Industrial Park (KIP) plans. The company’s shareholders have 75 per cent of the shares in the KIP; while government has 25 per cent.

Mukasine explained that the need for sustainable industrialization and urban environmental management, as enshrined in the country’s vision 2020, prompted the government to encourage investments in a modern Industrial Park.

According to plans, KIP’s 253 ha of land in Masoro (Gasabo) are to be developed in two phases.   She said, with all RIG’s plans and investments in the country, the company’s main objective is to build long-term partnership with other strategic investors, government and its customers.

“Investments are to be directed into high impact areas with the aim of making profit while accelerating social-economic development and stimulating private sector confidence to invest in Rwanda,” Mukasine continued.

She added that, “We want to provide a backbone for Prosperity. It is why we have chosen to invest in Cement factory (Infrastructure), in Energy (Gas and Peat), which are a foundation of the development of any country.”

Over the last few years, government has initiated a comprehensive set of reforms to the environment in which businesses operate to make Rwanda a business designation for both local and foreign investments.

These reforms in doing business have not only promoted local investments but increased the country’s doing business ranking by the World Bank.

The World Bank’s Doing Business Report: 2009 ranked Rwanda 139 out of 181 countries, moving up from 148 out of 178 countries in the previous year.

The country is considered to be fastest reforming in the region and among the 20 fastest reforming nations in the world. Last year local investments were valued at Frw466.7 billion from Frw467 million in 1999.

Ends

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