Charles Kibera is a tea farmer in Mulindi, in Rwanda’s Northern Providence. “We are now able to afford medical and life insurance in case of emergencies, due to the money we are making from tea.”
In 2012, Gatsby Africa expanded its partnership with The Wood Foundation into Rwanda. Together, they recognised that the Rwandan tea sector had enormous potential to produce high quality product, grow quickly, and benefit a significant number of smallholder farmers. Initial commitments have turned into a 25-year project. Whilst still a work-in-progress, this will eventually develop and manage over 10,000 hectares of tea, changing the livelihoods of more than 20,000 farmers.
Focus was initially directed towards improving factory quality and profits, with the goal of boosting farmers’ income. First steps involved purchasing majority stakes in two factories in Rwanda – Shagasha and Mulindi – with the intention to fully transition factories back to smallholder ownership once the original investment had been repaid.
After bringing onboard an in-house management team of tea professionals, yearly green leaf intake increased, and factory profitability improved dramatically. Mulindi has now repaid the original loan and transitioned to smallholder ownership, and Shagasha is well on the way to doing the same.
These shifts have seen farmer incomes jump by an average of 60%. At Mulindi, farmers now have a share of factory profits. This has made a huge difference, enabling parents to be able to afford medical insurance and send children to school.
Following these first interventions, The Wood Foundation and Gatsby Africa have applied a new model to support the Rwandan government’s planting targets for the sector. It is focused on creating Farmer Service Companies that assist in the form of tea planting services, agronomic advice, and logistics support.
The programme has already brought direct benefits to over 13,000 farmers. The service companies are reaching the halfway stage in terms of planting and the signs are positive in relation to farmer engagement, planting targets, and tea bush productivity. This programme of work is playing a substantive role in the growth and improved performance of Rwanda’s tea industry.
Undertaking a project of this scale is not easy. But the commitment of The Wood Foundation and consistent funding from Gatsby Africa means sustainable changes are prioritised over short term gain. Gatsby is confident that these efforts will continue to increase income for farmers like Charles Kibera over years to come.