Over 10 firms to invest tens of billions in Gabiro Agribusiness Hub

Eleven companies are expected to inject about $32milion (about Rwf34 billion) in ventures in Gabiro Agribusiness Hub, a commercial oriented farming project, within the first five years, according to its management. The hub is located in Nyagatare and Gatsibo districts of Eastern Province. READ ALSO: Rwanda identifies investors for Gabiro Agribusiness Hub The firms were allocated 4,000 hectares in the hub so that they start running agribusiness there once all the required infrastructure – including roads to ease movement of farm input and output, irrigation system and electricity – is put in place. Hanson Micomyiza, the Managing Director at Gabiro Agribusiness Hub, told The New Times that the infrastructure is over 90 per cent complete and farming activities could start by the end of the year. READ ALSO: How Gabiro residents will benefit from agribusiness hub Micomyiza said that more interest is being shown in horticulture production, followed by food crops and input production. Agriculture mechanisation is one of the targeted areas for investment in the scheme. Important crops to be grown in the hub are French beans, chilli, orchards such as avocado, strawberries, lemon and cereals dominated by maize and soybean, he added. Investors at the bhub are from different areas including the East African Community (EAC), Europe, Middle East and Rwanda, he said. Four of the companies there are locally registered and have operations in Rwanda. On March 2, 2019, the government entered into a joint venture with Netafim Ltd, an Israeli irrigation technology firm, for the development of the Gabiro Agribusiness Hub Project (GAHP). The government has 90 per cent shares-Equity. Netafim has 10 per cent shares–in kind. According to the Ministry of Agriculture and Animal Resources, GAHP aims to create a holistic and commercial agricultural ecosystem by developing an advanced agricultural eco-system and modern value chain over 15,600 hectares of arable land, with advanced water infrastructure, cutting-edge irrigation systems, high-value agro-processing operations and other ag-tech activities across the value chain. The first phase, covering 5,600 hectares, will require a total investment of approximately $73.9 million (about Rwf80 billion). Project land oversubscribed Micomyiza said that 31 investors had applied for 24,600 hectares and the selected 11 companies were allocated 4,000 hectares, leaving a gross area of 1,600 hectares for community farming by land owners. “The land demand, which sums up to six times the available size of the land, shows the appetite of private companies to partner with the Government of Rwanda in investing in the agriculture sector, and the trust investors have in doing business in Rwanda,” he observed. “The Gabiro project is expected to significantly contribute to the national exportation of high-value crops and increase revenue from export,” he said.

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Over 10 firms to invest tens of billions in Gabiro Agribusiness Hub