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WEF_GrowAfrica_AnnualReport2014

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Forward Look<br />

Forward Look<br />

Investment and Partnering Opportunities<br />

The following investment opportunities have been<br />

identified by the Government of Rwanda:<br />

Interest sought in managing new seed<br />

processing facility<br />

In recognition of the priority accorded by the GoR<br />

to ensuring access to quality agricultural inputs, the<br />

government has built warehouses/silos and processing<br />

facilities for value addition downstream of the seed<br />

value chain with a view to building capacity to tap into<br />

emerging markets.<br />

Specifically, the government has built a 10,000-tonne<br />

p.a. capacity seed processing plant in the Kigali<br />

Special Economic Zone. In the spirit of public-private<br />

partnership, it is now looking for private seed operators<br />

to take over management of this plant and other<br />

facilities to ensure a reliable supply of locally-produced<br />

quality seeds of high-yielding varieties to service<br />

domestic and foreign demand.<br />

While domestic consumption is currently limited to<br />

8,000 tonnes, available export markets for surplus seed<br />

already exist in Burundi and the Democratic Republic<br />

of Congo. With its favourable business climate and<br />

location, Rwanda is ideally placed to become the seed<br />

supply hub for the wider Eastern Africa region.<br />

In gearing up towards privatisation, the government<br />

is currently reviewing seed laws to integrate Plant<br />

Variety Protection (PVP) or Plant Breeders’ Rights, thus<br />

enabling private seed companies to develop their own<br />

varieties in the country. It has also committed to end<br />

seed subsidies by the last quarter of 2014 so as to<br />

fully engage the private sector in seed production and<br />

distribution by the commencement of the 2015 season.<br />

The development of horticulture has therefore been<br />

identified as a top priority to which the GoR has<br />

channelled a considerable amount of resources,<br />

resulting in a tremendous increase in annual<br />

horticultural production that currently stands at 2.5<br />

million tonnes.<br />

However, as marketing of this produce remains<br />

haphazard, it is considered that the development of a<br />

modern wholesale market facility would help better<br />

promote the sector while providing an attractive<br />

investment opportunity.<br />

The GoR accordingly seeks interested investors<br />

as partners to build a proposed “Kigali Whole Sale<br />

Market” in the capital’s Special Economic Zone,<br />

consisting of a 10 ha facility with the capacity to hold<br />

300,000 tonnes of produce by 2030. The total cost<br />

of the project is estimated at $31.4 million (70% being<br />

capital investment for construction) to be completed<br />

in three phases. The initiative has the potential to<br />

create up to 2,000 jobs within the market itself and<br />

through affiliated businesses.<br />

Floriculture is another area with great export<br />

potential. The Gishari Flower Park, which covers<br />

100 ha and has the capacity to produce and sell 95<br />

million stems, requires further investment to build<br />

basic infrastructure, such as greenhouses.<br />

Value-addition opportunities in potato<br />

and dairy processing<br />

Rwanda is shifting to value addition in all agriculture<br />

sectors, with the greatest opportunities existing in<br />

potato and dairy processing.<br />

potato yields (12 tonnes/ha) are higher than those of<br />

regional competitors, with further potential to increase<br />

yields to 25 tonnes/ha. Yet despite rich volcanic<br />

soils, high altitudes and widespread cultivation in the<br />

Northern Province ensuring continued growth, only<br />

15% of Rwandan potatoes are processed into chips or<br />

crisps.<br />

To enable high-potential markets in the region to be<br />

serviced, the value chain needs to be strengthened<br />

through the addition of a modern cold storage facility<br />

in Musanze district (requiring an investment of around<br />

$1.8 million) and a potato processing plant (involving<br />

the injection of around $8.8 million).<br />

Dairy value addition also exhibits great potential, as<br />

only 10% of Rwanda’s milk is currently processed.<br />

The opportunities available in dairy processing include<br />

fermented milk, yoghurt, cheese, butter, ice cream,<br />

milk powder, ghee, as well as flavoured and sweetened<br />

milk. Proposals for independent ventures are also<br />

welcome.<br />

Point of contact for investments<br />

Potential investors wishing to express their interest or<br />

find out more should get in touch with:<br />

Jjiibwa Rucibigango, Investment Specialist,<br />

Ministry of Agriculture | jrucci@minagri.gov.rw<br />

| +250 72 699 5709<br />

Investment openings in high-potential<br />

horticulture<br />

With the surge in demand for horticultural imports<br />

from regional and international markets due to<br />

climate change and the desire for organic produce,<br />

Rwanda’s ideal growing conditions could see the<br />

country serve as a hub for supplying fresh fruit,<br />

vegetables and processed food to the region and<br />

beyond.<br />

Demand for processed potato chips has been growing<br />

at a rate of 10-17% annually in central and east Africa,<br />

fuelled by a rapidly urbanising population and a thriving<br />

tourism market. The majority of processed potato chips<br />

are imported from Europe and South Africa, with only<br />

two major factories producing frozen potato chips in<br />

East Africa – in Nairobi and Uganda.<br />

Rwanda is the largest producer of potatoes in East<br />

Africa and the 3rd largest in sub-Saharan Africa. Its<br />

In 2013, this hub farm for maize, was established through a partnership with Heineken.<br />

154<br />

Rwanda<br />

Rwanda<br />

155

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