 | Rwanda |
INVESTMENT PRESENTATION
THE PROPOSAL
With regard to investment climate, Rwanda has a business friendly regulation, 2nd in Africa for ease of Doing Business and Global Competitiveness. Thanks to the Investment Law No. 006/2021, and being part of the East African Community (EAC) Common Market with market and customers Union with market potential of over 132 million people, the country has the 2nd fastest growing economy in Africa. Regarding efficiency in supporting investment processes, Rwanda is a country with free business registration, with a highly digitalized and efficient administration and with a One Stop Centre for investors with dedicated investment acceleration and aftercare team.
As of September 2023, HIH geographical areas were selected, territories with high agricultural potential selected, potential value chains identified and investment opportunities identified. Nyaruguru and Ngororero Districts and the Kaduha-Gitwe Corridor (covering Nyamagabe, Nyanza and Ruhango Districts) (Figure 1&2) were identified as areas where HIH impact is expected to be higher.
Figure 1:
Map showing typology classes of Rwanda
Figure 2:
Efficiency illustrating how much of the potential is attained
Poverty
Potential
Efficiency
COMMODITIES AND INTERVENTIONS
Tea production and processing
Tea is an important export cash crop, regarded as high potential value chain (NAEB strategic plan). Rwanda has ideal climate, given a relatively high level of acidic soil on which the crop grows well. Rwanda Tea is renowned for its high quality which justifies its high price at Mombasa. HIH investment plan targets production of 300 million seedlings, cover 17,000 ha with tea production and establish one tea factory at Nyamagabe District. Part of the investment will also be allocated to feeder roads for easy supply and accessibility to main roads.
The investment will be established in Nyamagabe, Ngororero Districts and some micro-regions of the Gitwe-Kaduha Corridor. The total investment required for tea production and feeder roads is estimated at USD76 million and USD223 million, respectively, with a combined Net Present Value (NPV) of around USD140 Million and an average internal rate of return (IRR) of 19%.
Small livestock production
Currently, no layers’ hatchery in HIH districts, which concur with a low per capita egg consumption. In addition, the availability of quality and quantity feeds still a challenge, mainly because feed inputs like soybean and maize compete with human consumption. Only six feed factories currently producing slightly over 150,000 tons of commercial poultry feeds per year – None located in HiH zones.
The intervention will be (i) to establish layer chicken hatchery and breeding farm, (ii) set up of egg powder processing plant, (iii) establish a feed processing plant and poultry & pigs feed storage (silos) and (iv) establish poultry and pig model farming. The total investment required is estimated at USD179 million, comprising a NPV of 81.7 million and an IRR of 27%.
Potato
Previous suitability studies suggested Irish potato as a potential crop in HiH districts. This can be reflected in the increase in demand from 719 MT to 10,194 MT in 2021 and 2022, respectively. However, the availability and timely access to early generation potato seed (EGPS) is still a challenge. The current investment plan suggested interventions in this regard, such as: (i) production of EGPS (tissue culture plantlets, micro tubers and pre-basic seed), (ii) establish standardized potato storages and (iii) establish a potato processing plant.
The total cost of investment required is estimated at USD23.8 million, with a NPV of USD15.9 million and an IRR of 29%. e above-mentioned investments will be implemented based on the microclimate of HIH areas and based on potential of each identified value chain.
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