TPSF revels in TZ firm’s acquisition of Kenya’s company

DAR ES SALAAM: TANZANIAN conglomerate Amsons Group has received backing from the major shareholders of the Kenyan cement firm to acquire stakes in Bamburi Cement for 180 million US dollars (about 475bn/-).

This significant move will mark one of the largest corporate acquisitions in East Africa, underscoring the growing influence of Tanzanian businesses in the region.

Amsons Group, which had recently bid to acquire Bamburi Cement, received backing from the major shareholders of the Kenyan cement firm — Holcim, the Swiss-based global leader in building materials and aggregates, has agreed to sell its entire stake in Bamburi Cement to Amsons.

According to a recent statement from Bamburi Cement, the two largest shareholders of the cement company have agreed to divest their holdings to Amsons Group.

Holcim holds 58.6 per cent of Bamburi’s issued share capital through its subsidiaries, Fincem Holding and Kencem Holding Ltd, each owning 29.3 per cent of the company.

Amsons Group, led by Edha Nahdi, is a family owned enterprise with operations in Tanzania, Zambia, Malawi, Mozambique, the Democratic Republic of the Congo (DRC) and Burundi.

The firm confirmed on Wednesday that it has signed a legal offer with Bamburi Cement.

“Amsons has confirmed that on July 10, 2024, it received an irrevocable commitment from Fincem Holding and Kencem Holding as part of the offer,” stated Bamburi Cement in its announcement.

Edha Nahdi, Managing Director of Amsons Group, expressed enthusiasm about the acquisition: “We have great plans to deepen our investment in Kenya and in Bamburi,” he said.

Experts have praised the prospective acquisition, highlighting it as a testament to the capability of Tanzanian companies to compete on an international stage.

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Chief Executive Officer of the Tanzania Private Sector Foundation (TPSF), Raphael Maganga, noted that this development reflects the strength of Tanzania’s economy and the supportive environment for business expansion.

“This development not only signals economic maturity but also represents a new wave of domestic investor enthusiasm. The bold move by Amsons Group, led by Edha Nahdi, opens doors for Tanzanians to excel in investment,” Mr Maganga remarked.

He emphasised that the economy of any nation reflects its policies.

“Sound policies lead to a thriving economy. Under President Samia Suluhu Hassan’s strong leadership, the sixth phase government has implemented numerous investment policies that have greatly benefited our economy.

These policies have reassured investors that Tanzania is safe and ‘open for business.’ The government’s efforts have positioned Tanzania as a secure business environment globally.”

Mr Maganga also said strategic projects, such as transportation infrastructure improvements including the central railway, Standard Gauge Railway (SGR), air travel enhancements and road expansions align with economic policies, boosting both investment efficiency and national income.

“President Samia has been at the forefront of these economic policies, which have placed Tanzania in a new league of investment potential in Africa and globally,” Mr Maganga added.

He commended Amsons Group and Edha Nahdi for their significant investment, which he views as a lesson in bravery and a model for others to follow.

“As a nation, we should offer our sincere congratulations to Amsons Group and extend special commendations to Amson Group.