Crystal Ventures Ltd, the investment arm of the ruling Rwanda Patriotic Front, is to sell a stake in its security firm, Intersec Security, and its food processing company Inyange Industries.

Crystal Ventures says this is part of measures to overhaul its business operations in order to increase its presence in the regional market.

Inyange Industries is Rwanda’s largest food processing firm while Intersec Security, according to sources, is Crystal Ventures’ most profitable business alongside NPD Contraco, a construction company.

A source familiar with the process said that NPD Contraco would also be put on the block soon.

Prof Manasseh Nshuti, chairman of Crystal Ventures, told The EastAfrican the firm would cede between 51 and 60 per cent of Intersec at an unspecified price.

“We are talking to potential investors. With ambitions to go out into to the region, we need strategic investors who can steer us to another level through financial resources and better management practices,” said Prof Nshuti, adding that Intersec had attracted interest from more than five foreign firms.

From Inyange, Crystal Ventures hopes to raise more than $120 million from the sale of 51 per cent shares.

READ: Crystal Ventures to sell stake in Inyange

Interested parties

Two undisclosed Kenyan firms and others from Asia, Europe and the United States are said to have expressed interest in Inyange.

The two deals are expected to be closed in the next five months and the buyers will be mandated to retain the head offices in Rwanda.

A source familiar with the process told The EastAfrican that RPF feels compelled to shed some of its businesses after its dominant position in the Rwandan market became the subject of scrutiny lately.

The holding company has long been accused of influencing government decisions in order to win lucrative public tenders.

The source said that with the new strategy, RPF is trying to improve the credibility of its business and bolster goodwill.

READ: Our businesses are clean, says RPF

According to Prof Nshuti, Crystal Ventures is also ready to open up some of its wholly owned subsidiaries to local investors by floating shares on the Rwanda Stock Exchange.

Floating shares

The firm is currently in talks with the capital market regulators and Rwanda Stock Exchange to float shares of Ruliba Clays Ltd — Rwanda’s sole brick and tile making company — as well as East African Granite Industries.

Crystal Ventures — valued at around $500 million — also owns Mutara Enterprises, Bourbon Coffee, CVL Developers, Real Contractors, as well as GPS Ltd and Media Systems Group.