Finnish firms to invest in agric mechanisation, skills transfer

Finnish manufacturing firms have expressed interest to invest in Rwanda’s agriculture sector. The investors explored investment opportunities and strategies to forge business ties with local investors last week. While receiving the investors at her office in Kigali, Dr Gerardine Mukeshimana, the Minister of Agriculture and Animal Resources, pledged government support, adding that there are investment opportunities in agro-processing, packaging, fruit canning, floriculture and coffee processing, among others. The minister said government is seeking more investors in agriculture to help accelerate the sector’s growth, stimulate Rwanda’s economic transformation, and enhance and diversify agro-exports. Mukeshimana said the ministry is promoting modern farming methods, including new technologies, to help improve production and quality along the agricultural value chain. The government targets 8.5 per cent annual growth rate in the agriculture sector by 2018. The sector is currently expanding at 7 per cent, and contributes about 33 per cent to the national economy annually. The agriculture sector employs over 72 per cent of the Rwandan population. According to Markku Virtanem, the head of the delegation, for Rwanda to achieve its growth targets in the agriculture sector will require strong public-private partnerships and joint ventures between foreign and local investors. Virtanem, who is also the in-charge of business development for Africa at General Finland, said the Finnish investors will provide equipment and latest technologies, as well as offer technical support to boost agriculture production and value addition. The other members of the delegation were representatives from JPT Industries, Best Hole Company Ltd and KOMELOS Group of Industries, among others. The firms said they would collaborate with local companies involved in the agriculture value chain. The companies have presence in many African countries, including the DR Congo, Uganda, and Kenya. Speaking at the event, Benjamin Gasamagera, the chairman of the Private Sector Federation (PSF), said the federation will help the investors get meaningful partners for possible joint venture deals. He commended the move to bring the latest innovations and expertise into the country, saying they are critical for the future of the sector and support government efforts to modernise agriculture. Already, a number of local private sector agro-dealers are negotiating with the Finnish companies to provide them with durable and affordable machinery. Such equipment are essential to drive Rwanda’s commercial farming agenda and push to diversify agriculture exports and increase production and household incomes.

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Finnish firms to invest in agric mechanisation, skills transfer