The latter becomes the first tea factory fully owned by farmers in Rwanda. For the past ten years, farmers co-owned the factory with an investor, Ian Wood who had 55% shares.
The handover ceremony of the factory was also attended by representative of tea farmers, the Minister of Agriculture and Animal Resources, Dr. Geraldine Mukeshimana and British national, Sir Ian Wood who established The Wood Foundation.
WoodFoundations has through his company dubbed East African Tea Investment Ltd acquired 55% shares of the Mulindi Tea Factory when it was privatized by the Government of Rwanda in 2012 to enhance management and productivity.
A total of 5000 tea producers grouped in two local smallholder tea cooperatives will take over the management of the facility & tea industrial block on 175ha.
Speaking at the event, Premier Ngirente thanked Sir Ian Wood, the Chairman of The Wood Foundation for all his philanthropic activities in tea business in Rwanda.
He highlighted that The Wood Foundation has played a significant role in improving the livelihoods of the smallholder tea farmers and empowering rural communities through business development, capacity building and financing.
The Premier appreciated the contribution of The Wood Foundation to the entire tea sector in Rwanda and called upon cooperatives to whom, Mulindi Factory Factory has been handed, to ensure the factory remains profitable and operates in the interests of the farmers.
Considering the achievements including capacity building, whereby more than 4,700 farmers graduated from Farmer Field Schools and 170 farmers and staff received corporate governance training, Premier Ngirente expressed optimism that smallholder farmers in Mulindi Factory Company are well empowered to take over the management.
He also appreciated the factory’s contribution to exports’ growth and reiterated Government’s support to farmers.
“The Government of Rwanda appreciates the contribution of Mulindi Factory Company to the entire tea sector in Rwanda. This factory is leading in terms of volume of tea produced in Rwanda, accounting for an average of 12% of the national production and 10% of exports,” Premier Ngirente said.
“We especially appreciate that under the management of the East African Tea Investments (EATI), the annual green leaf production has increased. The Government of Rwanda is committed to continue supporting tea growers to whom, Mulindi Factory Company has been handed, to ensure the factory remains profitable and operates in the interests of the farmers,” he added.
Sir Ian Wood, Executive Chairman of The Wood Foundation said that it has been a matter of great pride and satisfaction to work with the tea farmers at Mulindi.
“It was difficult, to begin with, but with the investments and significant training programmes, the farmers’ performance and their income have greatly improved. We are very pleased to be handing over a well-established successful company and will continue to provide some support for an interim period,” he noted.
The Government of Rwanda has always supported initiatives aiming at enhancing the tea sector, one of the top sources of the country’s revenues. Currently, the sector has a direct workforce of 60,000 people who produce one of premium quality black CTC teas in the world.
Speaking at the event, Minister Mukeshimana said: “I look forward to seeing continued growth at Mulindi, that the business maintains a high standard of professionalism and governance, and that it continues to act in the interest of its members.”
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