Cimerwa Ltd’s contribution to Pretoria Portland Cement’s (PPC) revenues helped cushion the company’s turnover in the six months ending 31 March 2016. According to the Johannesburg Stock Exchange, PPC holds a 51 per cent stake in the Rwandan cement company.
While PPC’s results show bases in Botswana, South Africa and Zimbabwe were depressed due to a shrinking market and falling prices, a recently-commissioned plant in Rwanda added almost ZAR200m (US$13.5m) to the group’s revenue.
Despite the groups revenue dropping by one per cent to ZAR4.5bn (US$304m), Cimerwa Ltd’s significant contribution boosted its earnings. According to Darryll Castle, CEO of PPC, “in the absence of Rwanda's contribution, group revenue would have declined by five per cent.”
However, the Rwandan operations are threatened by smuggling in the region. Specific volume and value of smuggled cement is not known but has continued unchecked, putting exports under pressure and affecting growth in the sector. In 2015 Rwanda spent over US$82m on cement imports.
