South African cement producing company PPC recorded a strong performance in it Rwanda operations as well as Zimbabwe that shot its financial year earnings by more than a double. The Pozzolana Port Cement (PPC) company hailed the working environment in Rwanda that has borne great results for the company. The cement company has struggled to establish itself in its domestic market but has enjoyed a series of success in its branches which has acted as good signs of investments.
Rwanda, in battle with Ethiopia as the new East African investment hub contributed massively to growing its gross profit by 3 per cent in joint venture with the Zimbabwe plant. Their business environment has birthed the desired results of the company’s vision and strategically poise them for greater investments in the future. Rwanda has had a fetching business environment for Foreign Direct Investments (FDIs) which have made the country competitive in the regional market.
The emergence of Ethiopia as an attractive investment hub due to the massive 100-million population and promising, ever growing market has poised a challenge to Rwanda and other neighbouring countries. The resilient performance gives Rwanda a chance to prove Ethiopia wrong as it set to bounce back and retains its position.
According to reports, PPC’s branch in Rwanda recorded an increase revenue of 10 per cent, coated with an increase of 20 per cent in volume. This states a growing demand in the market for cement with a growth in the manufacturing industry. Rwanda has planned to build more affordable houses with the rapid population growth to cater for its citizens.
Buildings for offices and businesses continue to be in demand with the business environment growing and expanding over time. President Paul Kagame like his counter part President John Pombe Magufuli encourages investments in the country to boost major sectors and offer development opportunities in the country.
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Rwanda’s great performance master-classed that of Ethiopia and DRC despite the latter two being commissioned late. Zimbabwe’s contribution to the group profit was catapulted by a 33 per cent increase in revenue and a 45 per cent increase in volumes, setting a new sales record for the firm.
The firm hopes to serve the increasing international market demand of cement in Rwanda and Zimbabwe, with the two already showing great urge for the production. PPC could take advantage of the business climate in Rwanda and the prospects of the economy’s revival to spur its development and performance. With better management practices they could see their stake in East Africa continue to rise and reach the maximum potential, serving the market and growing itself.
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It could however poise some competition to the local manufacturing companies in the country that may lack a cutting edge due to technology.
