CEMENT MANUFACTURING IN RWANDA

Route to market CIMERWA's main target market is Rwanda, with Kigali the main consumption node accounting for approximately 55 - 65% of local demand CIMERWA Cement consumption & GDP (forecasts) 900 000 9% 800 000 • Target export markets of Burundi as well as south Kivu and north Kivu in the eastern DRC 700 000 8% We expect exports to contribute ~30% of total sales volume in the long-term 600 000 500 000 7% • Our local cement will initially be sold at the factory gate whilst we evaluate the business case for deliveries, mainly to Kigali 400 000 300 000 6% 2015 2016 2017 2018 2019 2020 • For this purpose we will be implementing a management platform to control the planning and execution of logistics • This platform will enable CIMERWA to effectively penetrate its main target market, and to optimise its cost to serve as well as inbound logistics • A combination of contracted and ad-hoc vehicles will be used; this is an opportunity to capacitate the Rwanda transport industry • All exports are expected to remain on a collect basis • Whilst the current business model assumes bagged product sales only, we are excited about the near- future prospects of delivering a bulk solution to the industrial and construction segments in Kigali 13 000 000 12 500 000 12 000 000 11 500 000 11 000 000 10 500 000 Cement consumption (tpa) GDP growth % (rhs) Cement consumption per capita (forecasts) 13 500 000 70 65 60 55 55 50 45 40 2015 2016 2017 2018 2019 2020 Population •Cement consumption per capita (kg) - rhs Source: IMF, Cemnet and PPC calculations 13

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