International Tea Day: Scaling inclusive value chains in Rwanda’s tea sector – the SORWATHE experience

Tea farmers in Rulindo District are recording improved livelihoods through a cooperative-based production model supported by SORWATHE LTD, which links smallholders to markets, technical support, and social development programmes. The company works with more than 8,700 farmers under ASOPTHE and Hillside Organic Tea (HOT) cooperatives, forming one of Rwanda’s largest organised tea supply chains. The company management says the approach is built on collaboration with farmers rather than directive control, with cooperatives remaining independent under Rwanda Cooperative Agency law. “We do not impose decisions. We discuss technical issues and test them through demonstration plots before scaling up,” Management said. Improved production and market access Farmers say the partnership has provided a stable market and more predictable income compared to earlier periods when sales were less structured. Leocadie Uwanyirigira, a tea farmer from Rukozo sector in Rulindo, said she began tea farming in 2020 and has since expanded production. “We sell our harvest to SORWATHE, which helps us monitor marshlands, access fertiliser, find partners, and also provides training for farmers,” she said. She explained that with good rainfall, she harvests around 2,000 kilos per month, while output falls to between 400 and 800 kilos during dry seasons on the same plot of land. She added that farmers benefit from training, fertiliser access, and technical guidance through the cooperative system. Another farmer told The New Times that tea farming has contributed to household income growth and improved access to basic services. Fidele Inyamibwa, who cultivates 1.5 hectares, said tea income has enabled him to support his family’s education needs. “Three of my children completed university through tea farming. We have also been able to acquire land, and we plan to expand our plantation,” he said. Cooperative structure and profit sharing Farmers also benefit from access to community-based health insurance facilitated through cooperative earnings. ASOPTHE Cooperative currently has 6,148 members cultivating tea on 1,615 hectares, while HOT Cooperative works with 2,429 farmers on 430 hectares. Under ASOPTHE, farmers hold 13.4 per cent shares in SORWATHE Ltd in the cooperative-linked structure, with 75 per cent of its distributed profits going to members and 25 per cent retained for cooperative operations, which are approved by the member. Tito Hakizamungu, who represents HOT farmers, said the partnership has strengthened production systems, adding that the cooperative was established through partnership with SORWATHE and National Agricultural Export Development Board (NAEB). “We receive training, technical support and updates on international markets to improve quality and quantity.” Community development support Beyond production, SORWATHE says it supports surrounding communities through education, health, and infrastructure initiatives. The company supports early childhood development centres and preschools, as well as school feeding programmes that include eggs and porridge for children. It has also contributed to road maintenance, bridge rehabilitation, and water ‘infrastructure projects in the catchment areas. SORWATHE further supports vocational training for graduates and provides assistance to vulnerable households through local administrative structures. Women empowerment structures Female workers under AFESO, an association established in 2007, say the tea sector has improved working conditions and financial inclusion. Evelyne Mutuyimana, who represents women in the association, said employees benefit from timely salaries, maternity leave, childcare support, and savings groups. “We also run income-generating activities such as livestock projects and small businesses that support members,” she said. Fairtrade and certificate benefits Since 2005, SORWATHE has been part of Fairtrade International, ensuring better prices and working conditions for farmers. Fairtrade premiums have supported education, health insurance, and community welfare programmes. Cleophas Mbonimpa, head of the Fair Trade Premium Committee, said the system supports over 2,500 workers. “We represent 2,500 workers and manage premium funds used for development projects shared between cooperatives,” he said. “At the factory, we produce organic tea – free of pesticides and inorganic fertilizer application.” He said “Fair Trade funds support health insurance, education for students, and school feeding programmes and other welfare programmes, including teachers’ welfare” “Through SORWATHE, we pay for community-based health insurance for workers and their families,” he added. The company is also certified under organic, Rainforest Alliance, and other international standards that regulate environmental and labour practices. Tea investments deliver tangible livelihood gains, says government Northern Province Governor Maurice Mugabowagahunde said tea investments in Rulindo have translated into visible improvements in household livelihoods. “Farmers now have a reliable buyer for their tea, which means consistent earnings and better planning at household level,” he said. “We have seen incomes improve, but also families investing in education, health insurance, and better housing.” He added that tea production has also created jobs across the value chain. “The factory has created employment not only within its operations but also in transport and farm labour,” he said. The Governor said government support focuses on strengthening cooperatives and infrastructure in line with supporting the tea value chain. “We are improving access to quality inputs, strengthening extension services, and investing in feeder roads,” he said. “We also work to ensure farmers can access finance and that cooperatives are well managed.” SORWATHE expands capacity, targets premium positioning for Rwandan tea SORWATHE Ltd produced approximately 4.5 million kilogrammes of made tea in 2025 as the company accelerated investments in factory modernization, farmer engagement, and quality improvement programmes aimed at strengthening Rwanda’s position in global tea markets. Management said the company continues to work closely with farmers through ongoing quality enhancement initiatives while optimizing its product mix in line with market demand and agricultural productivity. Speaking on the occasion of International Tea Day, Chairman of SORWATHE Ltd Emery Rubagenga said the company was focused on building a globally competitive yet inclusive tea business. “As we mark International Tea Day, SORWATHE stands at the intersection of heritage and transformation. We believe Africa’s tea sector can be both globally competitive and structurally inclusive, provided scale is matched with discipline and long-term capital,” he said. Rubagenga added that the company’s ambition was to build a resilient, high-quality tea origin capable of commanding premium positioning in international markets while ensuring value creation is shared with farmers and surrounding communities. Since its acquisition by Luxmi Tea in September 2024, SORWATHE has undertaken significant investments in processing infrastructure and operational modernization. The investments include a 20 per cent increase in withering capacity, installation of more than 520 metres of green leaf and withered leaf conveyance systems, and steam line upgrades designed to reduce firewood consumption and improve factory efficiency. Management said the modernization programme forms part of a broader long-term strategy to improve tea quality, operational sustainability, and farmer returns. Alongside factory investments, the company has also supported rural infrastructure projects in tea-growing communities, including bridge construction and road upgrades. Bridges on the main access road to the factory were reinforced to support 40-foot container traffic, enabling faster dispatch of tea exports and smoother transport of construction materials for the expanded withering facilities. Senior General Manager Veerendra Kumar Rawat said the company’s progress had been driven by strong farmer participation and cooperation. “We proudly recognize that progress has been built through the strong cooperation of our farmers and the collective spirit shown during our training, engagement, and awareness campaigns,” he said. “The participation and commitment demonstrated by farming communities have strengthened quality, sustainability, and productivity, laying a strong foundation for shared prosperity and long-term growth.” Chief Executive Officer Nzeki Samuel Munyao said Rwanda’s tea sector had demonstrated resilience despite global market volatility and changing consumer trends. “As we commemorate International Tea Day, we celebrate not only the resilience and quality of Rwanda’s tea sector, but also the strength of the partnerships that sustain it,” he said. “At SORWATHE, we believe long-term competitiveness begins with empowered farmers and employees, strong cooperatives, responsible environmental stewardship, shared value creation across the supply chain, and strong collaboration among all stakeholders.” Munyao also acknowledged the role played by Rwanda’s tea industry regulator, National Agricultural Export Development Board (NAEB), under the Ministry of Agriculture and Animal Resources (MINAGRI), describing its contribution to the sector as invaluable. SORWATHE Ltd and Silverback Tea Company — which oversees Gisovu Tea Company Ltd, Pfunda Tea Company Ltd and Rugabano Tea Company Pvt Ltd — together form the Rwanda tea operations of the Luxmi Group, alongside the globally recognised Makaibari Tea.

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International Tea Day: Scaling inclusive value chains in Rwanda’s tea sector – the SORWATHE experience