East Africa: Cimerwa, Dealers Lock Horns

The government and the private sector have over the past year intensified campaigns aimed at encouraging Rwandans to consume locally-made products, as well as broadening the country's exports base. However, it has emerged that some firms are struggling to make the cut due to competition from illegal dealers. Cimerwa, Rwanda's sole cement producer, for instance has asked the government for protection, saying local dealers are exporting its cement illegally, affecting its key markets in the Democratic Republic of Congo and Burundi.

Busisiwe Legodi, the Cimerwa chief executive officer, said the problem is made worse by the fact that some of the local dealers buy cement at subsidised prices for the Rwandan market, but sneak out the commodity in small quantities to the DR Congo and Burundi, making it hard for the cement manufacturer to sell.

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