KIGALI –The Government has entered an investment deal worth $250m with renowned Algerian agro processing firm CEVITAL.
The government represented by the Rwanda Development Board (RDB) and the National Agriculture Export Board (NAEB) signed a Memorandum of Understanding (MoU) with the Algerian company, that realised a turnover of US$3.5bn in 2010.
According to Issad Rebrab, Board of Directors Chairman of CEVITAL Group, the company plans to invest US$250m over 2 to 3 years, with special focus on agro-processing.
Upon signing, Rebrab said that the immediate interest is to add value to Rwanda’s tea but to also set up a sugar production plant with the capacity of at least 200.00MT per year.
According to RDB, CEVITAL Group is not only interested in partnering with local companies such as Inyange Industries but is also considering investing in grains and cereals processing.
“The main objective of the MoU is to document preliminary understanding of the parties’ roles and responsibilities with respect to the Project’s implementation,” RDB said in a statement.
While RDB promised to continuously support the company during its operations, the National Agriculture and Export Board through its Director General Alex Kanyankore also committed to assist CEVITAL Group in its operations which will be related to agriculture exports.
RDB CEO John Gara, in his statement, said that the Algerian firm will go a long way in supporting the growth of the country’s agriculture sector and also increase the country’s exports.
“Agriculture is still playing a significant role in Rwanda’s economy with 35% of GDP and 60% of commodity export revenues; therefore the Government of Rwanda still places urgent and strategic importance to this sector, particularly on value addition, to enable the country’s rapid economic growth. Therefore, this investment is a welcome addition.” Gara said.
CEVITAL Group is expected to commence operations in Rwanda before the end of this year.