Vivo Energy Rwanda, the company that markets and distributes Engen-branded fuels and lubricants in Rwanda, has acquired Energy Solution (ENES) and GEMECA petroleum assets.
The move is meant to increase its retail network and provide more convenience to its customers, according to the company’s executives.
With this acquisition, Vivo Energy Rwanda will increase its network by 13 operational service station and three new land banks which plan to be developed within the following 12 months.
Vivo Energy’s retail network will thus increase from 24 to 40 service station sites across the country.
Hans Paulsen, Executive Vice President of Vivo Energy East and South said that adding 13 new sites to their network, and significantly increasing its market share is a milestone that places a lot of value on the experience provided to customers.
In the past year, the company’s focus has been on raising the standard of convenience services, quick shops, car wash and other facilities in order to offer unmatched customer service at Engen-branded service stations.
“We are delighted to bring more stations and more choice to our customers with these newly added service stations,” Paulsen said.
This acquisition builds on the company’s strategy to invest to grow the business. Currently, the ENES and GEMECA branded service stations are being rebranded to Engen.
Paulsen continued: “We targeted the ENES and GEMECA portfolio for the outstanding quality of its staff and assets, its key account customer base, and for the strategic fit with our business. As such, I am very pleased that our Managing Director Saibou Coulibaly and the entire team at Vivo Energy Rwanda have been able to close this deal with both companies alongside our partners.”
Rwanda Development Board (RDB) Deputy CEO, Zephanie Niyonkuru, who was invited at the ceremony to announce the acquisition, said that this private transaction reflects a lot about the current business environment in Rwanda.
He said that this is a “vote of confidence” that Rwanda is a conducive environment for such transactions to take place. “In fact, we are encouraging the business community to take advantage of other existing facilities such as the Rwanda Stock Exchange,” he said, adding that, “when such transactions are going on, we would encourage you to consider cross-listing on the Rwanda Stock Exchange and raise more capital, but also give an opportunity your customers to be shareholders into the company.” “When one stops at the gas station to refuel, they should feel proud that they are spending to support the business they have stake it.”
Meanwhile, this transaction was facilitated by Bank of Kigali (BK).
BK CEO, Dr. Diane Karusisi told Taarifa on Thursday evening that they believe in consolidation because they have an advantage to go into economies of scale, invest in better services, safety and standards as opposed to small companies that struggle to meet the minimum standards.
“We picked interest because they also have a strong network across the globe, they are listed on the South Africa and London Stock Exchanges,” Dr. Karusisi said.
Vivo Energy Rwanda will ensure the smooth transition of this process working together with ENES and GEMECA.
Meanwhile, the company has also launched partnership with Victoria Motors where it will be installing electric charging points at service stations.
This is line with its mission to decrease carbon emission and offer eco-friendly solution solutions to customers.