In collaboration with Unilever Tea Company, Nyaruguru District is planning to build a bigger tea factory as tea produce increases within the district.
Currently, Nyaruguru District has three tea factories whose export production is under 5,000 metric tons a year, Habitegeko François the district mayor has said, adding that the new factory will be processing 10, 000 metric tons a year.
“It’s not only about the big quantity of production but many people will also benefit from job creation. This project will bring about a big impact in changing people’s life here in Nyaruguru District” he said.
The company has also brought a good model of working with small holder farmers to boost tea production. Another company, SCON (Services Company Outgrowers Nyaruguru Ltd), helps small farmers through interest free loans to be paid at the harvesting stage.
Under this scheme, many hillsides that were not used for many years are being planted and soon tea farming will become a professional business for Nyaruguru residents, according to the mayor, as the government decided that investors and farmers will share the interest from exported production 50% respectively.
Mukarwego Cancilde and Ngendahayo Théoneste are among farmers who first received the loans in 2017. They say that they are harvesting since last year but they are guaranteed will to start paying the loans after the new factory being built. Their produce is sold at Muganza-Kivu Tea Factory.
By the end of 2020, at least 900 farmers will have got loans equivalent to over Rwf 450 million, SCON representative in Nyaruguru District, Hategekimana Vincent, has explained.
SCON is working with 7000 farmers in Kibeho, Mata, Cyahinda and Munini Sectors under a 20 years long project.