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Report Date : |
02.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
PETROCOMSARL |
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Registered Office : |
Avenue des poidslourds, Petrocom house Kigali, Rwanda |
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Country : |
Rwanda |
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Date of Incorporation : |
01.01.1995 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
The subject is engaged in the manufacture of and trade, including
import/export, as well as the transportation and distribution of oil and
chemical products. |
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No. of Employees : |
390 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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|
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Payment Behaviour : |
Unknown |
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|
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Rwanda |
C1 |
C1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
RWANDA - ECONOMIC OVERVIEW
Rwanda is a poor rural country with about 90% of the
population engaged in (mainly subsistence) agriculture and some mineral and
agro-processing. Tourism, minerals, coffee and tea are Rwanda's main sources of
foreign exchange. Minerals exports declined 40% in 2009-10 due to the global
economic downturn. The 1994 genocide decimated Rwanda's fragile economic base,
severely impoverished the population, particularly women, and temporarily
stalled the country's ability to attract private and external investment.
However, Rwanda has made substantial progress in stabilizing and rehabilitating
its economy to pre-1994 levels. GDP has rebounded with an average annual growth
of 7%-8% since 2003 and inflation has been reduced to single digits.
Nonetheless, a significant percent of the population still live below the
official poverty line. Despite Rwanda's fertile ecosystem, food production
often does not keep pace with demand, requiring food imports. Rwanda continues
to receive substantial aid money and obtained IMF-World Bank Heavily Indebted Poor
Country (HIPC) initiative debt relief in 2005-06. In recognition of Rwanda's
successful management of its macro economy, in 2010, the IMF graduated Rwanda
to a Policy Support Instrument (PSI). Rwanda also received a Millennium
Challenge Threshold Program in 2008. Africa's most densely populated country is
trying to overcome the limitations of its small, landlocked economy by
leveraging regional trade. Rwanda joined the East African Community and is
aligning its budget, trade, and immigration policies with its regional
partners. The government has embraced an expansionary fiscal policy to reduce
poverty by improving education, infrastructure, and foreign and domestic
investment and pursuing market-oriented reforms. Energy shortages, instability
in neighboring states, and lack of adequate transportation linkages to other
countries continue to handicap private sector growth. The Rwandan Government is
seeking to become regional leader in information and communication
technologies. In 2010, Rwanda neared completion of the first modern Special
Economic Zone (SEZ) in Kigali. The SEZ seeks to attract investment in all
sectors, but specifically in agribusiness, information and communications
technologies, trade and logistics, mining, and construction. The global downturn
hurt export demand and tourism, but economic growth has recovered, driven in
large part by the services sector, but inflation has grown. On the back of this
growth, government is gradually ending its fiscal stimulus policy while
protecting aid to the poor.
|
Source
: CIA |
PETROCOMSARL
Main Address: Avenue des poidslourds, Petrocom
house
Zip code/City: Kigali, Rwanda
Telephone: +250 252 571935
+250 252 571936
Fax: +250 252 577815
Mobile: +250 788306238
Postal address: P.O. Box 1576
Zip code/City: Kigali, Rwanda
Web site: http://www.petrocom.rw
E-mail: petroc@rwanda1.com
VAT-No.: 100021995
Established: 1995
Banks: BanqeePopulaire du Rwanda
Employees: 390
CNPJ: -
Board of
Directors:
General Director Jean Karekezi
Director Derrick
KayombyaMajyambere
Public
information:
-
Legal form: Limited
Liability Company
Incorporation date: 01.01.1995
Balance sheet filing date: -
Tax Contributor Number (CNPJ): -
Legal status: active
Responsible Register: Trade Register of Rwanda
Entry Deleted Name
active PetrocomSarl
Entry Deleted Address
active Avenue des poidslourds, Petrocom
house,, Kigali, Rwanda/RW
Import and Export:
Import, Export
Payment history:
We spoke with Mr.Peene of VPS International BV, a supplier of the
company. He confirmed that they have been delivering the company for over 10
years now, and that this now done on 120 days payment terms. Mr.Peene visited
the company in August 2013, as they will start a joint-venture with
PetrocomSarl later this year.
As per his statement, the owner of the business also has several other
ventures in Rwanda, including a bank, the dairy farm, insurance company, a
steel factory, etc. There are also around 25 related gas stations, supplied by
subject matter.
Exchange rate:
US$ 1,00 = RWF 639,044 - Official rate on 28.08.2013
Main Activities:
The company is engaged in the manufacture of and trade, including
import/export, as well as the transportation and distribution of oil and
chemical products.
The company also runs around 25 gas stations.
Import : Africa, the Netherlands, Switzerland
As per own statement, they are the representative of VPS International
BV, the Netherlands and of Oryx of Switzerland.
Operations & branches:
At the Petrocom house, Avenue des poidslourds, Kigali we find the
headquarters.
Branches are located in Gikondo, Ngoma, Nyabugogo and Rubavu
Staff:
390
Credit to the recommended limit should be acceptable but should be
monitored on a regular basis. However, it is accepted practice to seek (bank)
guarantees when dealing with Rwandan importers.
Press clipping:
Petrocom: A fiery passion to contribute to Rwanda’s progress
When Petrocom Ltd was founded in 1995, it started out as a rather modest
transport company. Sixteen years later, it is among the biggest enterprises in
the country, and its activities have branched out in sectors as varied as
lubricants, gas, metal and milk.
In 2002, seven years after its creation, Petrocom was officially
approved as an international transport company by the ministry of
infrastructure. Nearly a decade later, the company’s transport subsidiary has
come a long way. With a fleet of about 40 reliable trucks, it is at the top of
its game, providing transportation of petroleum and other goods to and from
ports in Tanzania and Kenya. “We are the biggest transporter in the country,”
says Boyapale Reddy Gopal, the manager of the transport department of
Petrocom. “And one of the main advantages of our company is that all our trucks
have cargo insurance.”
Some of Petrocom's 40 trucks.
In addition, thanks to a well-equipped garage employing qualified
technicians and mechanics to service the vehicles, Petrocom keeps its trucks
in tip-top shape so that you can trust them at all times to deliver their cargo
without delay. “Our aim is to make transport easy and affordable, and at the
same time help boost the Rwandan economy,” explains commercial director
Derrick Kayombya.
Considering that the country is landlocked which makes many companies
dependent on imports for raw materials and on exports for earnings, that is not
an empty claim. Among Petrocom’s main export cargo is tea, while petrol
accounts for a big share of the imports – for major clients such as Kobil, SP
and SP Aviation.
Yet in its fifteen years of existence, Petrocom has moved beyond
transportation. It has also become Rwanda’s exclusive distributor of Rymco
lubricants, a world-class oil fit for any type of truck, car or motorcycle. “We
have the latest grade when it comes to lubricants,” explains Patrick Kimenyi,
commercial agent at Petrocom. “Some of them can be used both for gasoil and
petrol engines and they last for up to 45,000 km – they are definitely
recommended for anyone wanting to efficiently protect their engine and keep
them running.”
The fact that Petrocom counts the national police and the ministry of
defense among its clients, as well as big public transport companies like
Volcano Express, is certainly a testimony to the superior quality of its
lubricants.
Petrocom does not only sell LPG, but also accessories such as gas
cookers.
Petrocom also has entered the energy market, with the sale of liquefied
petroleum gas (LPG) for cooking, heating and lighting. It is not only more
environment-friendly than charcoal, but also cheaper and cleaner in the
kitchen (no soot); and it is not an energy-gobbler such as electric stoves. The
company does not only sell bottles of gas, but also necessary appliances such
as gas stoves and accessories. Among Petrocom’s many clients in this field are
hotels, restaurants, schools, hospitals, factories as well as numerous
families.
Ufametal
Over the years, Petrocom has also created two distinct subsidiaries, the
first of which is Ufametal, which as the name suggests produces all kinds of
metal construction materials. These include metal sheets, tubes and pipes of
different thicknesses, bespoke parts such as frames for doors and windows, as
well as guttering and ridges.
With its state-of-the-art equipment, Ufametal can produce 5000 pieces
of roofing sheets of 3 meters each in 24 hours and 2500 pieces of hollow
sections, 6 meters long, in 6.5 hours. “This means that our customers’ orders
can be delivered in 12 hours max even when we have many orders to fill,”
remarks Patrick Kimenyi. “And if we are not very busy, we can even deliver in
less than an hour, depending on how big the order is.”
And placing orders is, by the way, as easy as it can get. “Customers’
desires are very important, and our products can be entirely customized to
the customer’s exact specifications,” Kimenyi says. In addition, roofing
sheets are available in a variety of colors, so that they can fit on any
house.
But they are not only beautiful, they are also solid and durable and
therefore suitable for all weather conditions, which is great news with the
Rwandan weather changing at all times. This is due to the fact that Ufametal’s
roofing sheets are coated in a way to make them anti-corrosive, so there is no
need to change them every few years.
A market built with Ufametal’s metal sheets.
“The best thing is that we offer our customers variety to choose from,”
said Kimenyi. Indeed, the great variety of the company’s wares, plus its
ability to adapt to specific demands, means that it is unlikely you will leave
Ufametal empty-handed. And neither will your wallet be empty. “Our products are
affordable,” added Kimenyi. “After all, our motto is ‘quality at the best
price’.”
One organization which has already been convinced is the ministry of
education, which has chosen Ufametal to supply roofing sheets and other construction
materials for its classroom construction program in the context of the 9-year
basic education. And with Kigali’s construction boom, many others are turning
to the company for its durable and affordable products.
This confidence shown by the local market has convinced Ufametal to
think big and look beyond the country’s borders. “We hope to export our
products to Burundi and Congo, and even Uganda, in the near future,” says
Derrick Kayombya the commercial manager of Petrocom.
Kagugu Dairy Farm
There are some 190 cows at Kagugu Dairy Farm.
The second subsidiary, in an entirely different field of activity, is
Kagugu Dairy Farm, located just outside Kigali City. It is a modern cattle
farm which houses some 190 hybrid and Friesian cows, which together can reach a
production of 1600 liters of milk per day. It has mechanized milking facilities
as well as modern cooling and milk treatment equipment.
The milk of Kagugu Dairy Farm is sold either directly from the farm or
at its dairy outlets in Kigali. The milk is of the highest quality as no
artificial growth hormones are used on the cattle and they are kept healthy
and clean through meticulous hygiene, in order to maximize the quality and
production of milk. Preservation of the milk is also taken care of. “We have
coolers that protect the milk after milking and during transport,” explains
Eugene Ndayambaje, the farm’s manager. “This and the other factors contribute
to making our milk sell faster than any other.”
On a farm of this size, work is always available: taking care of the
animals, feeding them, cleaning the stalls, growing the animals’ feed, taking
care of the milking and its conservation and so on. This greatly benefits the
local residents, Ndayambaje points out, since they constitute a big part of
the workers on the farm. “The local residents can also get high quality milk
close to their homes,” he adds.
Milking at Kagugu is mechanized.
The company’s vision is to be the best provider of diverse high-quality
dairy products and be able to do their own packaging. “With that goal in mind,
we are hoping to acquire equipment in the near future that will allow us to
process the milk and produce various wholesome milk products such as fresh
whole milk, UHT milk, pasteurized milk, low fat and skimmed milk, yoghurt, soft
and hard cheeses, butter products, different types of cream and others, in
order to give more choices to our customers,” says Petrocom’s commercial
director Kayombya.
Farming and cattle keeping also need to be done in a way that is mindful
of the environment in order to be developed on a sustainable scale. Petrocom
is doing exactly that with its dairy farm in Kagugu, where all the activities
are done with the protection and conservation of environment in the forefront,
and even the cow dung is used to produce biogas (see sidebar).
Big taxpayer
With such a vast array of activities, Petrocom has a significant
socioeconomic impact. All its subsidiaries combined employ 175 permanent
workers and 125 casual ones, generating an income for their families and thus
improving their livelihoods. As some of them told us, they are now able not
just to provide basic necessities for their households, but also easily send
their children to school. In addition, Petrocom also ensures access to healthcare
for the employees and their families through RAMA’s health scheme.
Petrocom is of course also one of the country’s biggest taxpayers. “We
pay millions in taxes each month,” explains John Paul Tuyishime, the financial
director.
With its diligent, experienced, professional and innovative staff, the
use of new technologies, Petrocom continues to raise the bar in its objectives
and to identify new targets when others have been reached. And in all it does,
the company has a fiery passion not only to improve itself, but also to
contribute to the progress of Rwanda.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.57 |
|
|
1 |
Rs.103.34 |
|
Euro |
1 |
Rs.88.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.