The heavy construction industry in Rwanda has become highly competitive with the increased presence of international companies, rising labor and raw materials costs and significantly tighter donor development budgets. One of the leading Rwandan construction firms, experiencing challenges in the midst of this rapidly changing landscape, engaged Karisimbi Partners to identify business opportunities and develop a five year strategic plan.
Karisimbi Partners approach
Karisimbi Partners sized the market opportunity, engaging with local, regional and international customers and competitors to determine appropriate subsector opportunities for the client company to best leverage its inherent strengths. These strengths, consisting primarily of local knowledge, experience and highly nurtured and interconnected relationships with some of the largest customers in the sector, led KBP to additionally target strategic consolidation and joint venture opportunities to better combat rising regional competition within the industry.
The client company has signed a Memorandum of Understanding with another large national construction company identified by Karisimbi Partners, and is taking initial steps toward a potential future merger. The company has been actively pursuing joint venture opportunities with large regional and international construction companies and has assigned a full-time senior executive to pursue and execute on at least one of these opportunities within the year. The CEO affirmed the value of the engagement by indicating that the company would not have considered these options had Karisimbi Partners not presented the justification and supporting plan.