Last week, a plenary sitting of the Chamber of Deputies voted the Law determining State Finances for the 2021/2022 fiscal year closing the 2020/21 financial year.
Doing Business looked into major agro-processing investments achieved in 2020/21 fiscal year and those expected in 2021/22 fiscal year expected to spur economic development and creating jobs.
Increasing cassava processing plants capacity
In the 2020/21 financial year, at least 51 agreements were signed between cassava growing farmers and cassava processing plants namely Nyamiyaga and Kinazi Cassava processing plants.
Kinazi Cassava processing plant, Minister of Finance and Economic Planning Uzziel Ndagijimana said, it is operating at 35 per cent of its 600 tonnes production capacity per month.
"The number of cassava cooperatives that work with the Kinazi factory will continue to be increased as the plant’s capacity increases,” he said.
Kinazi Cassava flour package for export. Photo: Sam Ngendahimana.
In 2019, the government announced that the Kinazi Cassava Plant could receive a bailout from the government as it desperately seeks to turn around its unprofitable business operations.
The assessment revealed that the firm is grappling with technical issues such as insufficient equipment.
Ruhango-based plant’s shareholders are the Development Bank of Rwanda and Agaciro Development Fund.
With the right equipment, the production capacity of the plant can be boosted significantly.
The intervention was supposed to involve recapitalization as well as overall business restructuring to make it profitable.
Cassava is the second most grown crop after banana in terms of cultivated area and the fourth most consumed staple crop in Rwanda.
Rwanda currently produces around three million tonnes of cassava as average production and scaling up new varieties could increase to about eight million tonnes per year with improved varieties and appropriate use of fertilizers but need post-harvest handling investments to reduce losses.
Adding value to milk
In the 2020/21 fiscal year, at least 9 million litres of milk were supplied to milk dairies which is higher than the 7.2 million litres that had been projected.
With the Girinka Programme "One cow per family”, the cattle population is still growing.
Overall, statistics show that the number of cows rose steadily from 813,417 in 1992 to 1,449,888 in 2020, the growth needs enough agro-processing technologies.
The 2021/22 financial year, the government will facilitate the establishment of milk dairies worth Rwf8.6 billion.
Cooking oil production
Minister Uzziel Ndagijimana said that importers have established a $10 million cooking oil factory this year.
The investment is expected to reduce import bill.
The waste from this factory will also be used in soap production.
Rwanda imported 126,002 metric tonnes of cooking oil in 2020 according to Trade and Industry Ministry statistics.
Maize processing plants
Maize flour is one of the staple foods in Rwanda.
Government continues to develop maize processing plants while striving to reduce the trade deficit.
In the 2020/21 fiscal year, the government has facilitated the establishment of an additional processing plant with capacity to produce 30 tonnes of maize flour per day.
Gabiro Agribusiness Hub
The Gabiro Agribusiness Hub Project was started in 2019.
It aims to create a holistic and commercial agricultural ecosystem by developing an advanced modern value chain over approximately 15,600 hectares of arable land with advanced water infrastructure, cutting-edge irrigation systems, high-value agro-processing operations and other agriculture technology activities.
It is expected to create 4,000 jobs
Under the 2021/22, government allocated Rwf25 billion to Preparatory works for Gabiro Agribusiness Hub.
The government has a 90 per cent shareholding in the venture.