The Rwanda social security fund has acquired the remaining shares in Inyange Industries Ltd. and Ruliba Clays Ltd. from Crystal Ventures Ltd., taking full ownership of the two companies as it seeks to expand investments aimed at generating long-term returns for its members.
The Rwanda Social Security Board, previously held 40 percent of Inyange Industries and 50 percent of Ruliba Clays. The transaction brings its stake in both companies to 100 percent, according to a statement issued Thursday.
The acquisition reflects RSSB’s confidence in the long-term growth prospects of the businesses and is consistent with its mandate to protect and grow members’ funds through investments that generate sustainable, risk-adjusted returns, the institution said.
“Moving to full ownership reflects our conviction in the long-term potential of these businesses,” Regis Rugemanshuro, chief executive officer of RSSB, said in the 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,” he said.
Inyange Industries has established a strong position in Rwanda’s market and continues to record business growth, while Ruliba Clays is entering a new phase of expansion following completion of its second manufacturing plant, which has doubled its initial production capacity, RSSB said.
The social security fund said full ownership will allow it to support the companies’ next phase of development, with a focus on stronger governance, operational efficiency, disciplined capital allocation, regional expansion and sustainable profitability.
RSSB also said it may explore strategic partnerships and capital-market opportunities for the companies, including bringing in institutional investors or pursuing public listings where those options could create additional long-term value for its members.
The investment marks a deepening of RSSB’s role as a strategic investor in Rwanda’s private sector. The institution has been a co-investor with Crystal Ventures in Inyange Industries since 2014 and in Ruliba Clays since 2009.
Crystal Ventures, the investment arm associated with Rwanda’s ruling party, has been pursuing a strategy of divesting from mature businesses once they reach an appropriate scale and level of stability, according to the RSSB statement.
Beyond financial returns, RSSB said continued expansion of the two companies should contribute to 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 transaction comes as RSSB seeks to balance the protection of members’ funds with investments capable of delivering sustainable long-term returns.
“As they grow, we will remain disciplined in pursuing opportunities to realize and maximize that value over time,” Rugemanshuro said.
RSSB said it remains committed to prudent and active investment management while supporting the long-term financial sustainability of the social-security schemes under its management.
