Investors operating at the Gabiro Agribusiness Hub have asked the government to reduce irrigation water tariffs, saying high water costs are increasing production expenses and affecting the competitiveness of their businesses.
The concerns were raised on Saturday, July 11, during a visit by Prime Minister Justin Nsengiyumva to the hub in Nyagatare District. The Prime Minister urged investors to scale up agricultural production, equip young people with modern farming skills, and maximise the use of available land.
ALSO READ: Rwanda’s bold move to revolutionize agriculture through Gabiro Agribusiness Hub
Emmanuel Harerimana, Managing Director of Garden Fresh, said irrigation is critical to the company’s operations but the current tariffs have become a significant financial burden.
Garden Fresh operates on 185 hectares, producing export horticultural crops such as chilli and fine beans using drip irrigation and fertigation technologies to improve water and fertiliser efficiency.
"We now pay Rwf277 per cubic metre of water. When you irrigate nearly 200 hectares every day, the cost becomes enormous. We are engaging relevant institutions to see how these charges can be reduced," Harerimana said.
He said the company has invested in efficient irrigation systems and plans to expand production using existing infrastructure, but lower water costs would make such investments more sustainable.
ALSO READ: PM Nsengiyumva pushes for accommodation, transport for Gabiro Agribusiness Hub workers
Augustin Twagiramungu, Managing Director of Agropark Gabiro Ltd, said irrigation costs have a major impact on maize production expenses.
"We pay about $0.19 per cubic metre. When you calculate the amount of water needed for one hectare of maize, irrigation costs reach around Rwf1.8 million," he said.
Twagiramungu added that charging water tariffs in US dollars increases the burden on investors because costs rise whenever the Rwandan franc depreciates, while most agricultural products are sold locally in francs.
"As exchange rates change, our production costs continue to increase. Reducing water tariffs would help investors manage production costs more effectively," he said.
He suggested that investors could contribute to the maintenance of irrigation canals and related infrastructure if this would allow water charges to be reduced.
Other investors raised similar concerns. Sage Umutoniwabo, Chief Operating Officer of Kinvest Ltd, said high irrigation costs continue to affect the profitability of agricultural production.
Saleem Esmail, owner of Western Seed Company Ltd, said lower water tariffs would support efforts to expand maize seed production in Rwanda.
"The cost of water remains high and is one of the issues that needs to be addressed," he said.
Responding to the concerns, Agriculture and Animal Resources Minister Telesphore Ndabamenye said the government is reviewing the issues raised by investors.
"They indicated that water costs remain high. We are assessing their production costs alongside revenues to determine whether there are challenges that can be addressed. Discussions are ongoing, and government support will continue," he said.
Ndabamenye said the 5,600-hectare Gabiro Agribusiness Hub was developed with government-supported irrigation infrastructure that draws water from the Akagera River to enable year-round farming.
He added that the government plans to expand irrigation infrastructure and increase production at the hub by 50 per cent.
The hub, located in the Rwimiyaga and Karangazi sectors of Nyagatare District, was established by consolidating large tracts of land and equipping them with modern infrastructure before allocating them to private investors for commercial farming.
More than Rwf100 billion has been invested in the project.
Under the first phase, about 5,600 hectares have been developed, with more than 4,000 hectares allocated to investors. The farms produce crops including maize, fruits and vegetables while creating jobs for more than 6,000 local residents.