British International Investment

ARM Cement Plc

East AfricaManufacturing

ARM Cement Limited (ARM), is one of East Africa’s leading manufacturers of cement, lime and fertilizer. The firm has operations in Kenya, Tanzania and Rwanda.

Formerly known as Athi River Mining Limited, the company is headquartered in Nairobi and is listed on the Nairobi Securities Exchange (NSE).

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

CDC invested into the company to boost the local supply of cement in East Africa.

The investment allows ARM to potentially expand its operations into neighbouring countries and promote the development of regional infrastructure.

Expected impact

Expected impact of investments made between 2012 and 2018. From 2019 onwards, we have published a fuller set of impact information, assessing each investment against six dimensions of impact.

In the short-term, our investment will be used to repay the company’s debt and improve its financial strength. This will allow it to focus on plans to improve its current operations and build new capacity.

Cement prices are very high in many countries in Africa, which makes buildings and infrastructure development prohibitively high. By increasing the local cement capacity, our goal is to bring down the cost of cement to customers who are based a long distance away from the traditional coastal producers.

It also benefits the supply chain of small to medium-sized enterprises (SMEs) that transport the company’s raw materials and provide it with general services.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D112
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    East Africa
    Country

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.

    :
    Kenya
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Manufacturing

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Equity
    Start date :
    September 2016
    Amount :
    $140m
    Currency of investment :
    USD
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Kenya

Related investments made by BII into this company:

Investment name Commitment Region Sector Start date Status
Investment 02 $4m East Africa Manufacturing February 2018 Active

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