NAIROBI, 12th JULY 2013
FUSION INVESTS IN RWANDA’S LARGEST COMMERCIAL QUARRY
Fusion Capital has invested Rwf 1.3 billion (approx. $2 million) in Rusororo Aggregate Limited, the first fully commercial large scale aggregate mining company in Rwanda. Fusion has acquired a 46.5% equity stake, and is partnering the existing management team to take the operation to a new level of efficiency and mechanization.
Rusororo Aggregate is Rwanda’s only large scale operation specializing in stone crushing for commercial purposes. The company is strategically positioned owing to its ownership of multiple sites in the region valued at Rwf 27 billion; and the robustness of Rwanda’s construction sector, which is expected to record significant growth over coming years as the city of Kigali effects a modern development master plan. In 2011 the construction sector grew by 23% and this level of growth is expected to continue in the short to medium term driven mainly by infrastructure development.
The investment by Fusion will go into the mechanization of the quarry, to increase production and ensure that the company is able to meet growing purchase contracts in the country. A spokesman for GA-JMK said: “We are delighted that Fusion has shown this confidence in us. It is great to have a financial partner of their experience – they have helped us every step of the way, and this investment allows us to increase the output of our business 8-fold, so the benefit is enormous.”
Kajuju Kageenu, Director of Fusion’s Kigali office commented: “It is great to play a part in enhancing a business which is so vitally important to Rwanda’s development objectives. We are delighted to be on board.”
About GA JMK
- Rusororo Aggregate Limited is a stone extraction company that has been in operation since 2010, involved in commercial production of aggregate and other stone products in Rwanda.
- The company owns three quarry sites situated between 18km and 28km from the principal market for its product in the capital Kigali.
- The company was awarded an investment certificate by the Rwanda Development Board allowing the compnay investment incentives
- Rusororo Aggregate’s stone deposits are estimated to be 3.5 million³ meters, according to geological survey carried out on the sites.
- Fusion Capital is part of the Fusion Group of businesses. We are a hybrid business financing and private equity house, designed around the needs of local businesses in the emerging economies of East and Central Africa.
- Established in 2006, Fusion operates from four East African countries; Kenya, Uganda, Rwanda and Tanzania.
- Fusion’s products include private equity financing, real estate and money market operations.
- Investments are made in local or hard currencies (EUR, GBP, and USD) for working capital and capex support, funding expansion and growth.