Minagri and RDB in a Tea sector Investment drive

On the 5th of February, 2013, Rwanda Development Board (RDB) organized a meeting with several tea companies looking for investment opportunities in the Ministry of Agriculture & Animal Resources.

This meeting was to address challenges within the tea sector for investors, and how to overcome pending issues to encourage the private sector. In attendance was Sharon Wilkins, the Deputy High Commissioner, the British High Commission to Rwanda, Gisovu Tea Company Ltd., Rwanda Tea Trading Ltd., Sorwathe, Nshili Kivu Tea Factory, Rutsiro Tea Factory, Gisakura Tea Factory, and Pfunda Tea Factory representatives.

“The expansion of the tea sector presents a challenge of land scarcity and opportunity,” remarked the Hon. Minister, citing small size of the country and addressing food security issues. The Ministry promoted different models of partnership between investors and farmers to avoid displacement of farmers from their land.

The Permanent Secretary expressed concern over tea factories that may be under-producing compared to expected capacity with less indication of positive change in comparison to past privatization. An inter-ministerial team of concerned institutions will be set up to monitor and assess the performance of the private investors within the tea sector.

The main concern and one constraint has always been land availability for investors, and the process of acquiring industrial blocks within tea sectors. Because of Rwanda’s small country size in comparison to other African countries, and its quality as the most densely populated, it is difficult to afford to hand over land for all potential investors.

“We very clearly discourage displacement of farmers. It’s all they have. They are just beginning to understand and appreciate the importance of owning land. We are interested in investors, but we have a responsibility to our farmers and allow the time for farmers to be able make informed decisions about the land that they own,” Hon. Minister Kalibata explains to the group.

MINAGRI is adamant with investors about sponsoring or employing farmers on their land to minimize farmer displacement and risking destitution.

Although there are 18,000 ha available for investment within the tea sector, Rwanda will be sure to be careful about how to handle land availability.