Sir Ian Wood has handed over ownership of Rwanda’s largest tea factory to 5,000 farmers.
The Aberdeen-based entrepreneur signed over ownership of the Mulindi Tea Factory, in Gicumbi, to two smallholder tea co-operatives in a ceremony attended by Edouard Ngirente, the prime minister of Rwanda.
It is the first factory to be owned 100% by smallholder farmers in the country.
The Wood Foundation – Sir Ian Wood’s charitable trust – and Gatsby Africa, run by Lord David Sainsbury, acquired a majority of shares in the plantation through an investment vehicle, East Africa Tea Investments (EATI), when it was privatised in 2012.
‘Great pride and satisfaction’
Since then, The Wood Foundation has invested in modernising the factory and upskilling farmers, while also providing corporate governance support.
Sir Ian, executive chairman of the Wood Foundation, 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.”
Tea a major player in Rwanda
Tea is one of Rwanda’s most important exports, with revenue of £70 million in 2020 and is the third-largest employer, directly supporting 60,000 people and a further 200,000 indirectly.
In the decade since privatisation a total of £11.3m in financial and operational support has been invested in the factory by EATI, while farmer incomes have doubled in the same period from £1,069 in 2013 to £2,202 in 2021.
Factory capacity has increased from 60 tonnes to 120 tonnes of green leaf tea per day and production has increased from about 30lbs in 2013 to 40lbs in 2021.
The Mulindi Tea Factory is now owned 100% by farmers, through two smallholder tea cooperatives – Cooperative Du The Mulindi and Cooperative Du The Villageois Mulindi.
The prime minister told Sir Ian: “The government of Rwanda commends you for all philanthropic activities in tea business in Rwanda.”
Mr Ngirente added: “This noble initiative has improved the income, skills, knowledge and livelihoods of the smallholder tea farmers of Mulindi region.
“The Wood foundation is currently involved in six tea factories. It played a significant role in creating economic activities to empower rural communities through business development, capacity building and financing.
“This factory is leading in terms of volume of tea produced in Rwanda, accounting for an average of 12% of the national production and 10% of exports.”
Farmers’ empowerment
Rwanda minister for agriculture and animal resources Gerardine Mukeshimana said: “This is a historic event for the Mulindi tea farmers and I am so happy to see this empowerment at the rural level.
“To the 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.
“I pledge the continuous support of the ministry in this regard.
“To The Wood Foundation and Gatsby Charitable Foundation, it has been an exciting and demanding 10-year journey and we thank you for your support to small-scale tea farmers.
“Your exit from Mulindi business underscores your commitment to farmer’s empowerment, and your confidence in the people and country of Rwanda.”
