Rwandan farmers become major tea factory owners

Tea is a major contributor to the Rwandan economy

Five thousand small-scale farmers in Rwanda have been handed ownership of the country's largest tea factory by British philanthropists.

Charities run by oil tycoon Sir Ian Wood and Lord Sainsbury signed over control of the Mulindi factory to two co-operatives at a ceremony in Gicumbi.

The Wood Foundation and Gatsby had owned the plant since it was privatised by the Rwandan government in 2012.

It is the first factory to be 100% owned by smallholder farmers in Rwanda.

The country's economy is overwhelmingly rural and heavily dependent on agriculture.

The Mulindi factory was acquired by the British philanthropists in 2012

Small-scale farmers represent three-quarters of Rwanda's entire tea production, which contributed $93m (£71m) to the nation's economy in 2020.

The sector engages a direct workforce of 60,000 people and supports the indirect employment of a further 200,000, according to The Wood Foundation.

• Rwanda seeks financial sector advice from Jersey

• The cow helping widows rebuild their lives

Aberdeen-based Sir Ian said: "It's been a matter of great pride and satisfaction for Lord Sainsbury and I to work with the tea farmers at Mulindi.

"It was difficult to begin with, but with the investments and significant training programmes the farmers' performance and their income have greatly improved.

"We are very pleased to be handing over a well-established successful company and will continue to provide some support for an interim period."

Small-scale farmers represent 75% of Rwanda's entire tea production

Since the philanthropic investors acquired majority shares in the factory in 2012, a total of $15m (£11.5m) has been invested in modernising the plant and upskilling farmers and local management.

During that time, farmers' incomes have doubled, while factory capacity has increased from 60 to 120 tonnes of green leaf per day.

'Historic event'

Rwanda's minister for agriculture, Dr Gerardine Mukeshimana, described the ceremony as a "historic event" for the Mulindi tea farmers.

"I look forward to seeing continued growth at Mulindi, that the business maintains a high standard of professionalism and governance, and that it continues to act in the interest of its members," she added.

The Wood Foundation was established by Sir Ian and his immediate family in 2007 to address economic and societal inequity.

In Africa, it is working to empower 80,000 smallholder farmers in tea and other agricultural sectors.

Lord Sainsbury set up the Gatsby Charitable Foundation in 1967. It has worked in Africa since 1985.