Sunday, November 1, 2020

Kenyan cement producer enters Rwandan market

A Kenyan cement manufacturer, National Cement Company has debuted the Rwandan market trading the product under the brand name Simba.

 

The firm says that their entry into the local market is among other things informed by the pace of development and infrastructure establishment in the country, creating an opportunity for supply.

The firm is availing cement to Rwandan importers from their recently launched plant in Nakuru, Kenya an estimated 500KM to the Rwandan border.

“The Rwandan market is one of the fastest growing economies in Africa. Since the government of Rwanda is implementing and supporting several projects, the shortages in the Rwandan market has caused supply chain bottlenecks. The National Cement Company is bridging this gap by providing the products closer to the Rwandan importers,” Dr. Narendra Raval Chairman and Chief Executive of the company said.

The producer is availing cement for both small scale buyers and large projects working with local outlets and traders across the country and has provisions for direct import for purchase of large scale quantities.

“The customs documentation and process is fairly simple since both Rwanda and Kenya fall within the East African Community. We have several dealers based within the country, some in Kigali and others spread across the country,” he said.

The brand promises competitive pricing in the local market with an aim to drive to growth and acceptability.

According to the firm, purchase from the Kenyan based plant is $82.5 per ton, a promotional offer for the Rwandan market adding that dealers and importers in Rwanda will pass on discounted prices to the buyers and other end users.

The brand has attained both regional and global cement certifications including licensing and certification from the Kenya Bureau of Standards.

“The end goal of the product being available in the Rwandan market at competitive prices is improved infrastructure projects in Rwanda,” Raval said.

The entrance of the firm in the local market is expected to address cement shortages and price hikes often experienced in the local market.

In the previous years, whenever there has been a major construction project, there have been supply shortages and consequent price hike.

At the moment, the annual demand of cement is estimated at over 1.2M tonnes annually. There are two cement plants operational in the country with a capacity of 600,000 tonnes each but not operational at full capacity. This has left a supply gap necessitating imports.

With a number of a number of major infrastructure projects lined up including a new airport in Bugesera, the demand is set to go up in coming years.

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