Rwandan cement manufacturer CIMERWA plans to invest about US $190 million (about Rwf275 billion) to build a clinker plant to solve the company's dependence on imported clinker, CEO Mangesh Kumar Verma announced recently. Once the plant is put into production, it is expected to save Rwanda about $2.88 billion (about 4 trillion Rwandan francs) in foreign exchange expenditure over the next 25 years.
The announcement comes after CIMERWA released its unaudited financial results for the nine months ended June 30, 2025. The new plant is expected to start operations within two years and produce about 60,000 tonnes of clinker a month, a key component of cement production, Verma said. In addition to helping to stabilize production costs, the plant will transform Rwanda from a clinker importer to a net exporter.
"Once our clinker plant is operational, it is expected to save about $2.88 billion in foreign exchange outflows over the next 25 years." Verma said. Reflecting the company's strong financial performance, CIMERWA declared an interim dividend of Rwf14.5 billion for the nine-month period
ending June 30, 2025. Based on the results, the dividend payment is due on October 18, 2025. Its revenue increased by 50% to Rwf109.17 billion, compared to Rwf72.87 billion in the same period in 2024. The increase was mainly due to the acquisition of the Prime Cement plant in Musanze in July 2024. Profit before tax (PBT) fell 23% to Rwf11.2 billion from Rwf14.6 billion in 2024,
despite rising revenues. The decline was attributed to the increase in input costs and the continued depreciation of the Rwandan franc.
Verma stressed that a major factor affecting profitability was the cost of clinker imports. CIMERWA currently imports about 30,000 tons of clinker a month to supply its Musanze plant, which costs between $3.7 million and $4 million a month, the main raw material for cement production.
"Our profit margins are also affected because at our Musanze plant we use imported clinker." "That's why we decided to build our own clinker plant in Musanze," Verma said.
The plant, which produces about 60,000 tonnes of clinker per month, is expected to meet the company's local demand – estimated at about 45,000 tonnes per month – and export the remainder. At the same time, he said that if projected limestone reserves-key to clinker production-exceed expectations, "we have reserved arrangements to add another production line."
Verma highlighted the financial impact of clinker in cement production, noting that it accounts for about 70% of its production costs – up to 95% if imported.
CIMERWA said it was moving ahead with major expansion projects to meet growing demand, especially from large developments such as the new international airport in Bugueseira, which is under construction. Companies are constantly updating their market strategies to enter high potential market segments while strengthening their existing market presence.
With these strategic initiatives and a solid foundation, the Company is confident in delivering stronger operational performance and improved financial results over the next few years.
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