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CSR in Frw29bn investments

A list of 10 projects valued at over Frw 29 billion was recently approved by Caisse Sociale de Rwanda (CSR) board for funding.
BY FRANK NAMARA AND MULIISA RICHARD A list of 10 projects valued at over Frw 29 billion was recently approved by Caisse Sociale de Rwanda (CSR) board for funding. CSR, a government social security provider report indicates that the implementation of these projects will add value to the company’s investments funds. CSS Managing Director Henry Gaperi said on phone that the implementation of these projects would spread for a period of three years. “We expect a lot from these projects,” said Gaperi. The projects include the construction of the 17 storey insurance plaza, valued at about Frw11.23 billion in Kigali City centre and Gacuriro shopping, valued at about Frw10.07 billion. The approved projects would also lead to spreading out of CSR services to remote areas. Thirty CSR branches would be constructed. Each district will have a branch. Some projects are currently being implemented. Due to high cost involved for some, the report says that some would be executed in phases. Over Frw7 billion has already been spent. CSR hopes to partner with Rwanda Housing Bank (RHB) in the construction of 234 residential houses in Gacuriro and 600 houses in Kimisange. It would also pattern with Rwanda Investment Group (RIG), Tri star and Prime Holdings, in setting up Ultimate Concepts Ltd, a company which would provide for conference facilities, hotel services, and offices. CSR, RIG, Rwanda Development Bank, SONARWA (insurance Company) and MAGERWA-(government warehousing,) would also join hands in setting up Rwanda Free Zone and Industrial Park development. More investments in houses are expected. CSR would also take part in the construction of 100 low cost housing in Batsinda housing project, in addition Frw3.5 billion houses in Nyagatare district. The report mentions the construction of 100 houses in Rwamagana. Other projects for CSR’s board consideration include the glass manufacturing plant, Ceramic tiles manufacturing facility, Lake Muhazi Boulevard ltd and Kigali oil storage facility. The projection of a better yield from the investments is based on the profits registered from the investment portfolio. The current net return on investments is about 2.6 per cent (including investment in bonds). Gaperi said the minimum profits realised from the investment is 2 per cent above the inflation rate. CSR investments include Kacyiru Executive apartments, whose value is estimated at Frw5.2 billion (5.4 per cent of the total investment). Though the return on this venture is still the lowest, at about 4 per cent (2006), Gaperi said gains increase in terms of value and incomes generated. Other investments include Kacyiru residential houses estimated at Frw264 million with the highest returns on investments of about 18.2 per cent. Ends

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