{The government is seeking partnership with experienced Kenyan flower growing firms to address challenges the sector is facing.}
The assignment to Shalimar Flowers, a subsidiary of East African Growers is expected to bring in expertise, capital and marketing skills that will position Rwanda flower industry closer to that of Kenya.
Shalimar, according to industrial players, contributed to positioning of Kenya as one of the world’s leading flower exporters. Kenya controls 38 per cent flower market share in Europe and the country earns about $1 billion annually from entire horticultural exports.
Rwanda targets only Rwf152 billion annual revenue by 2017, however the country has not moved closer to the target as there is no commercial cut flower growers because investors are shying away from the capital intensive business.
The few farmers who have ventured into cut flower business have folded up business before they could break even.
Rwanda Flora, for instance, the pioneer of commercial flower growing in Rwanda stopped shipping flowers to Europe in 2008. The flower farm at Nyacyonga, 16 kilometres along the Kigali-Gatuna road, has been abandoned.
“The Kenyan technicians who used to work on the firm have left and greenhouses brought down for the development of a lorry park at Nyacyonga trading centre,” said Jean Claude Hakizimana, a motorcyclist who resides in the area.
Rwanda Flora, a consortium of local firms and individuals pooled resources to invest in the flower growing and exportation but the business failed.
The consortium was headed by Tristar, now Crystal Ventures, the investment arm of the ruling Rwanda Patriotic Front with a 30 per cent stake and the government through Rwanda Investment and Export Promotion Agency (Riepa) controlled 25 per cent holding.
Rwanda Enterprise Investment Company had 20 per cent stake, self-exiled city tycoon Rujugiro had 20 per cent shares while Cogripbu had 20 per cent stake.
The required investment to trigger the kind of flower production was Rwf29 billion ($42 million), according to a feasibility study by East African Growers, a consultancy firm.
The investment was required if the country was to produce 95 million stems annually. The stems would be grown under green, computerised irrigation, with fertiliser and pesticide application.
The government was forced to go back to the drawing board, this time, investing in the Gishari project by providing land, constructing some of the greenhouses. Experts said Rwanda is yet to develop the needed expertise and has limited sources of funding to finance the sector.
Source: {{The East African}}
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