RWANDA – Rwanda Development Board (RDB), the government’s investment institution has put three government owned companies up for sale calling for expression of interest by private players.
The government said that it will be selling its stakes in in Burera Dairy Limited, Nyabuhi Potato Company and Rutsiro Honey Limited, in its efforts of promoting efficiencies in the agribusiness companies.
The government announced that will be offloading up to 98.03 per cent of its shares in dairy products producer, Burera Dairy.
The dairy, which was established in 2015, has encountered various challenges which have led to the company halting its operations.
The government is also keen to sell up to 98 per cent of its shares in Nyabihu Potato Company after efforts to turnaround its fortunes failed.
Nyabihu Potato Company is valued at over Rwf1 billion (US$1m) and has an installed capacity to process about six tone of potato per day. The factory produces potato crisps processed French fries among other products.
The government will also be selling its 60 per cent stake in Rutsiro Honey Ltd.
The factory, which began operations in January 2018, has been facing operational challenges linked to proper management that has seen the factory fail to optimise its productivity.
Rwanda’s annual production has also been on the decline from a high of 5,000 tonnes in processed in 2016 to 3,500 tonnes in 2017. The country targets to increase production to 9,000 tonnes per year by 2024.
Sunny Ntayombya, RDB’s Head of Communications and Marketing noted that the through privatizing the companies, the government will bring on board the private sector to improve efficiency, capacity and operational management.
“The Government is interested in ensuring the actual improvement of the different businesses and the communities that depend on these businesses,” Ntayombya, told The New Times.
The government has therefore called for interested parties form the local and international market to submit their technical proposal for the acquisition of the stakes.
Interested parties in Nyabihu Potato Company and Burera Diary Limited should submit their proposal by September 20, to express interest while bids for Rutsiro Honey Company close on September 30.
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