Transforming the Cimerwa Cement Manufacturing Company in Rwanda through Privatization to Enhance Profitability

Abstract

The research targeted the challenges encountered in the privatization process impacting the profitability of Cimerwa Cement Manufacturing Company in Rwanda. This investigation held significance for CIMERWA, the researcher, and future scholars. Adopting a case study approach, the research engaged 172 CIMERWA employees, with a sample size of 64 selected through stratified and random sampling methods. Questionnaires and documentary analysis facilitated primary and secondary data collection, while reliability and validity of the instruments were validated via pilot research using Cranach’s Alpha and expert evaluations. SPSS software was employed for data analysis.Findings indicated that inadequate privatization strategies at CIMERWA hinder long-term sustainable performance and goal attainment, leading to escalated capital and maintenance costs, ultimately impacting the company's prosperity. The study emphasized that CIMERWA's efficiency in profitability hinges on its focus on crucial aspects such as material handling systems, warehousing, cost-effective profitability measures, supply chain and inventory management, all pivotal in organizational management. In terms of the benefits derived from privatization efforts, 23.4% of respondents affirmed that these services ensured accountability for profitability, while 60.9% attested to their role in ensuring profitability accountability. Employing the Pearson correlation coefficient in SPSS revealed a strong 96.3% correlation between privatization efforts and profitability. Keywords: Privatization, CIMERWA cement, Profitability, Accountability, Employees