CIMERWA PLC 2020 Prospectus

We have extracted the CEO’s Statement from the 2020 Prospectus for CIMERWA PLC (CMR.rw), listed on the Rwanda Stock Exchange: 

Dear Prospective Investor,

CIMERWA PLC is pleased to announce the Listing by Introduction of a 100 percent of its entire issued share capital of which 49 percent held by the Government of Rwanda (GoR) and other local investors will be availed as free float to the investing public at the Rwanda Stock Exchange (RSE). This listing transaction will allow the placement on free-float of 344,575,560 shares at a price of Rwf. 120 per share on the RSE. These shares will thereafter become available for transacting at the RSE upon the decision of the shareholders.

This equity transaction is the result of a successful working relationship between the Government, CIMERWA shareholders and other stakeholders. It is through this partnership that we are able to meet the following objectives:

• First, it allows a wider pool of investors, especially institutional and retail public investors, to participate in the ownership of CIMERWA. This includes employees and directors of the Company who will participate through an Employee Share Ownership Program (ESOP) scheme.
• Secondly, with the government listing its shares, this transaction supports the drive towards an increased private sector participation on the back of solid fundamentals with a steadily growing economy.
• And Thirdly, the listing allows CIMERWA to take advantage of the benefits of being listed at the RSE. These include tax benefits, an enhanced profile and the opportunity to easily raise growth capital to take advantage of the increasing market demand for cement.

Our journey started 35 years ago in 1984 with our incorporation as one of Rwanda’s legacy brands. We are Rwanda’s only integrated cement player and market leader servicing an estimated more than 50 % of the Country’s cement requirements. We have been part and parcel of Rwanda’s growth story with contribution to the society on many fronts. This includes enabling building of iconic structures such as the Kigali Arena, Prime Minister’s officer, Gasabo district headquarters and various stadiums.

We have also had major impact in our communities with various social impact initiatives such as support to small businesses (tailors, local produce traders with a market), a school that facilitates to 500 students plus, support of the community with a water treatment plant serving about 3,800 families and many more. Our Company is pursuing a strong green agenda that has seen us focus on programs to reduce our carbon footprint such as increasing the use of Alternative Fuels, installation of solar power to compliment power grid and various innovative solutions. We intend to continue on this journey as we pursue our ‘Strengthening Rwanda’ agenda.

Rwanda presents a great opportunity, considering that her cement per capita consumption stands at about 60kg per capita compared to the global average of >450kg per capita. The listing comes at a time when CIMERWA has just concluded a refresh of its business plan aimed at making it ready to shift gear in order to take advantage of this opportunity and scale up to the next level. Our refreshed plan will see CIMERWA unlock its full potential with accelerated financial performance and better returns to our shareholders. Our business plan projects strong improvement of profitability supported by focusing on a number of critical strategic initiatives, including:

• Plant capacity debottlenecking – various actions have been put in place to accelerate our growth of volumes to reach 600 Ktpa.
• Cost savings programs – the Company has embarked on a systematic program to save costs via increased efficiencies, innovation in the production process, logistics optimization and an intensified focus on fixed costs and overheads
• Strengthening of our “Route to Market” strategy in the face of a changing competitive landscape and market structure
• Focus on new building solutions, including enhanced cement product range and cement-related products
• Cash flow optimization with increased focus on CAPEX management and working capital levers
• Faster building of local skills and driving a performance-oriented culture
• An unwavering focus on Health, Safety and Environmental sustainability priorities

Our business plan projects a much stronger balance sheet with current loan obligations being extinguished by FY24. We will therefore be in a good state to offer good returns to our shareholders while investing further to tap into existing opportunities

We continue to tap into the strategic partnership with our majority shareholder PPC Ltd. PPC brings on board more than 125 years of cement manufacturing experience, technical expertise and a regional network of business and plants which share best practices with each other.

As incoming CEO, I am pleased to be part of this new journey at CIMERWA Ltd. I have no doubt that my experience in the cement category will bring value to help CIMERWA fast track its potential. We have a strong and committed Board and Management team on top of a highly supportive set of stakeholders led by the Government of Rwanda, customers, suppliers and bankers. My appreciation goes to all of them for the great support received thus far and look forward to the same going forward.

Finally, I encourage all potential investors to read our prospectus and look out for the opportunity to strengthen your future by purchasing CIMERWA shares through the RSE.

……………………………
Mr. Albert K. Sigei

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