The Rwanda Social Security Board (RSSB) has positioned itself to take greater control of the future expansion of Inyange Industries and Ruliba Clays after acquiring the remaining shares in the two companies from Crystal Ventures Limited (CVL).
The transaction, announced on Thursday, Aug. 27, gives RSSB 100% ownership of both companies and ends its long-running co-investment partnership with CVL.
RSSB previously held a 40% stake in Inyange and 50% in Ruliba Clays. It said the acquisition reflects confidence in the long-term prospects of the two businesses and is intended to generate sustainable, risk-adjusted returns for its members.
The pension body said full ownership would allow it to support the companies as they pursue their next stage of growth, with attention on corporate governance, operational performance, investment decisions, regional expansion and profitability.
At the same time, RSSB said it has not ruled out bringing in other investors in the future. It plans to explore strategic partnerships and opportunities in the capital markets, including possible institutional investment or public listings where these could create long-term value.
RSSB Chief Executive Officer Regis Rugemanshuro said the decision to acquire the remaining stakes was based on the institution’s confidence in the companies’ future.
“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.”
The move comes as both companies continue to expand their operations.
Inyange, a food and beverage producer, has invested in 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, which manufactures construction materials, has completed a second manufacturing plant that has doubled its initial production capacity, according to RSSB. The company is seeking to meet growing demand in Rwanda and the wider region.
RSSB has invested alongside CVL in Ruliba Clays since 2009 and in Inyange since 2014.
According to RSSB, the sale is consistent with CVL’s strategy of divesting from businesses after they have reached an appropriate level of scale and stability.
RSSB said the expansion of the two companies could also support domestic manufacturing, local value chains and employment while improving the competitiveness of Rwandan products in regional markets.
The institution said it would continue to manage its investments with the aim of protecting and growing members’ funds while supporting the long-term sustainability of the social security schemes under its management.
