Crystal Ventures staff to lose jobs
By ALEX NGARAMBE
Posted Saturday, February 8 2014 at 12:12
IN SUMMARY
CVL, which has an estimated value of $500 million, is owned by the ruling Rwanda Patriotic Front (RPF). It has spread its tentacles in various sectors – such as construction, furniture, beverage, security and manufacturing – and employs thousands of Rwandans.
Rwanda’s biggest local investment company, Crystal Ventures Ltd (CVL), will lay off more than 100 employees as it overhauls its businesses to increase efficiency.
While several companies under CVL have struggled to make profits, others have closed shop choking with heavy losses.
Rwanda Today has learnt that CVL’s management has been forced to close its subsidiary, Graphic Printing Solutions (GPS), because of inefficiency, rendering over 30 employees jobless.
“The management’s decision to close GPS was taken because it was inefficient and made losses while there were local private companies that were doing a good job,” Elias Bayingana, the chief executive officer of CVL, said.
CVL, which has an estimated value of $500 million, is owned by the ruling Rwanda Patriotic Front (RPF). It has spread its tentacles in various sectors – such as construction, furniture, beverage, security and manufacturing – and employs thousands of Rwandans.
Other CVL firms have been forced to restructure in an effort to cut the cost of operations, which have been higher than profits. They include furniture makers Mutara Enterprise, where 150-200 staff have lost their jobs, and construction firm NPD-Cotraco.
The management has however allayed fears by employees in other companies that the restructuring will affect them.
READ: Crystal Ventures in management shake-up
The company is also selling most of its stake in major businesses to improve efficiency and profitability.
Talks are ongoing between Inyange Industries, Rwanda’s leading food processing company that is 100 per cent owned by CVL, and Brookside Dairy (K) Ltd to sell a 51 per cent controlling stake to the Kenyan firm in a bid to expand operations into the East African region.
Source: Theeastafrican.co.ke