On August 29, 2019, Minister of Agriculture and Animal Resources, Dr Gerardine Mukeshimana, inaugurated Rugabano Tea Factory which is newly constructed in Rugabano Sector of Karongi District.
Owned by Luxmi Company, the new tea factory is installed with capacity to process 1,000,000 kg of made tea per year, but it will be upgraded with capacity to process 4,000,000 kg per year in 10 years, according to officials.
Speaking at the inauguration ceremony, Minister Mukeshimana noted that the new factory will boost the country’s tea export volume.
“Tea produced by this factory will increase Rwanda’s total tea export volume by 3% within 10 years,” the minister said, adding that it will also contribute in providing local residents with jobs; thus improving their livelihoods and boosting the country’s economy. The factory currently employs between 1,800 and 2,000 casual workers and 8 permanent workers.
In 2017, the government of Rwanda entered into an agreement with Assam’s Luxmi Tea Co. Pvt. Ltd – an Indian company to develop around 4,500 hectares (ha) of tea plantation, jointly with local tea growers.
In the first phase, Luxmi Tea was given 438ha under lease from the Rwandan government, in which the company supports local growers with know-how to cultivate 4,000ha more, and buy their crop paying a 44% share of revenue.
Rwanda produces one of the best quality tea in the world. The country’s tea industry consists of an annual production volume of over 30,000 metric tons of made tea. The area under tea cultivation is approximately 26,000 hectares.
As of the fiscal year 2017-2018, the total exported tea quantity amounted to 27,824,246 kg, an 11% increase from the previous year. Tea export grew by 18%; generating around USD 88 million.