The Rwanda Social Security Board (RSSB) said on Thursday, Aug. 27, that it had acquired the remaining shares held by Crystal Ventures Limited (CVL) in Inyange Industries Ltd and Ruliba Clays Ltd, giving the pension body full ownership of both companies.
Before the transaction, RSSB held a 40% stake in Inyange Industries and 50% in Ruliba Clays. The acquisition of CVL’s remaining shares makes RSSB the sole shareholder in both businesses.
RSSB said the move reflected its confidence in the companies’ long-term growth prospects and was in line with its mandate to protect and grow members’ funds through investments capable of generating sustainable, risk-adjusted returns.
The acquisition also gives RSSB full control over the next phase of development of the two companies, as it seeks to strengthen governance, improve operational performance, make strategic investments and expand their activities.
Inyange Industries, one of Rwanda’s leading food and beverage companies, has continued to expand its operations. One of its recent investments is a $54 million milk powder plant in Nyagatare District.
The facility can process up to 650,000 litres of milk a day, converting 500,000 litres into milk powder and the remainder into ultra-high-temperature milk.
Ruliba Clays, a manufacturer of construction materials, is also entering a new phase of expansion following the completion of its second manufacturing plant.
RSSB said the new facility has doubled the company’s initial production capacity, positioning it to meet growing demand in Rwanda and the wider region.
RSSB Chief Executive Officer Regis Rugemanshuro said the decision to move to full ownership reflected the institution’s confidence in the future of the two businesses.
“Moving to full ownership reflects our conviction in the long-term potential of these businesses,” Rugemanshuro said in a statement.
“Our ambition is to help build stronger, more competitive and more profitable companies that can scale beyond their current markets, attract strategic partners and generate sustainable returns for our members.”
RSSB said it would also explore strategic partnerships and capital-market opportunities as the companies grow, including the possible participation of institutional investors or public listings where these could increase long-term value for its members.
RSSB has been a co-investor with CVL in Inyange Industries since 2014 and in Ruliba Clays since 2009.
The transaction is in line with CVL’s strategy of divesting from mature businesses once they have achieved an appropriate level of scale and stability, according to RSSB.
RSSB said the continued growth of Inyange Industries and Ruliba Clays was expected to support Rwanda’s industrial development by strengthening domestic manufacturing, supporting local value chains, creating jobs and improving the competitiveness of Rwandan products in regional markets.
The institution said it remained committed to managing investments prudently to protect and grow members’ funds while supporting the long-term financial sustainability of the social security schemes under its management.
