By Leonce Muvunyi
In Summary
- Several Kenyan firms say the climate in Rwanda favours the growth of flower types attracting high demand on the international market. A number are already seeking partnerships in Rwanda.
- The Rwandan government has committed to strengthen the sector, through the National Agricultural Export Development Board (NAEB), which was established 5 years ago to support and promote agricultural exports.
- Rwanda is seeking to invest in modern large-scale horticultural crop production to ensure the country has enough volumes to take advantage of the demand in regional and international markets as well as boost exports.
Kenyan floriculture firms are eyeing expansion to Rwanda due
to favourable climate and government incentives aimed at boosting the
sector.
Several Kenyan firms say the climate in Rwanda favours the
growth of flower types attracting high demand on the international
market. A number are already seeking partnerships in Rwanda.
Bright Harvest Ltd, which brings together investors from Rwanda
and other East African countries but is based in Rwanda is among the new
entrants in the floriculture sector, having entered the market at the
end of 2015.
The regional firm joined the market couple of weeks after Zedgee Flowers Ltd opened its subdivision Floramatt, in Rwanda.
“Floriculture is a profitable business and the main attraction
for us is Rwanda’s climatic conditions and the enabling government
policies,” said Joseph Muganga, the managing director of Bright Harvest
Ltd.
Floramatt is looking to tap into a summer flower project growing
Mobydick flowers flourish in Rwandan climate, in a bid to meet market
demand in Europe.
Simon Ethangatta, a managing consultant with Floramatt, said
that a sample grown in Rwanda to test the viability of the projects
showed that the shoots harvested in Rwanda are double the size of those
harvested in Kenya.
“We want to tap into summer flowers known as Mobydick Flowers,
which are also grown in Europe, but we found that the same can flourish
here in Rwanda, in terms of quality and quantity, given the hilly
terrain,” said Mr Ethangatta.
The Rwandan government has committed to strengthen the sector,
through the National Agricultural Export Development Board (NAEB), which
was established 5 years ago to support and promote agricultural
exports.
However, commercial flower farmers say that despite NAEB
support, the floriculture sector still lacks technical support and
inputs which hampers the growth of the sector.
“The main challenge at the moment is the heavy capital
investment we make but we cannot get technical expertise to produce
flowers that meet export quality standards,” said Mr Muganga.
Rwanda is seeking to invest in modern large-scale horticultural
crop production to ensure the country has enough volumes to take
advantage of the demand in regional and international markets as well as
boost exports.
However, the floriculture sector remains small, despite progress
over the past five years. Export volumes remain low. “In terms of
revenues, the sector is not bringing in much. The volume and value of
our flower exports remain low,” said Epimaque Nsanzabaganwa, the
horticulture division manager in NAEB.
“We have started formal consistent export this year with Bella
flowers — one of five companies involved in flowers business,” he added.
Floramatt and Bright Harvest Ltd are looking to acquire more
land in addition to the 6 and 4 hectares they have respectively acquired
in Rulindo district.
Prosper Mulindwa, the Rulindo district vice mayor in charge of
economy development said that the district has planned to increase the
leased land to 300 hectares by 2018 and introduce the business to the
local communities to get outgrowers.
Though floriculture sector has been growing and is attracting
more investors due to government policies and incentives and other
subsidies, Rwandans are yet to take advantage.
The government has planned to build 10 tonnes of cold storage
facility by 2017/18 in Rulindo district to support flower growers as the
demand for flowers at the international market remains impressive.
“We are planning to go to the international market directly but
at the same time also enter into partnerships with like minded investors
to create a larger brand for Rwanda flowers on the export markets, said
Mr Muganga.
Rwanda is currently producing 500 stems of flowers with an
expectation to export one million stems of flowers by the end 2016/2017
fiscal year.
According to the National Agricultural Export Development Board
(NAEB) statistics, horticulture exports has grown to $10 million (Rwf8.2
billion) in 2016 from $6 million (Rwf5 billion) in 2013.
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