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Thousands of tea farmers in Rwanda have had their lives transformed by Sir Ian Wood’s charity

5,000 smallholder farmers from the Mulindi tea factory and field unit in Rwanda recently gathered to celebrate the significant progress in their tea farming activities and communities and to thank The Wood Foundation for their continued support.

Photo: Ross Johnston/Newsline Media/TWFA
5,000 smallholder farmers from the Mulindi tea factory and field unit in Rwanda recently gathered to celebrate the significant progress in their tea farming activities and communities and to thank The Wood Foundation for their continued support. Photo: Ross Johnston/Newsline Media/TWFA

In the stifling early morning heat, hundreds of tea farmers work to pick leaves in Rwanda’s northern province.

Working in small groups they methodically strip each individual plant into sacks and take them to be weighed, before they are taken to the nearby Mulindi factory for processing.

The site is one of two that the Wood Foundation has had a significant stake in – the other is Shagasha in the south – for the past six years.

In 2012, the charity – led by oil and gas billionaire Sir Ian –  invested £8.6million in both factories, which equated to about 60% of the shares in each.

In the long-term, complete control will be transferred to the smallholder farmers, whose crops feed into the tea-making process.

Tens of thousands of farmers are now being pulled out of poverty, with their incomes trebling, while the quality and output of the industry has soared.

The Press and Journal was invited to the country to get an insight into the life-changing work the foundation has carried out.

Currently there are about 6,000 smallholders supplying each of the  factories, who collectively own some 3,100 hectares.

Since the foundation took over, the price of tea has gone up about 70% while their yields have improved by almost 50%.

While initially resistant and suspicious of the charity’s motives, Sir Ian said the farmers were now beginning to feel the benefits and were enthusiastically on board with the new model.

He said: “Initially it was really a lot of quite aggressive questions like ‘why are you doing this?’ and ‘what are you charging for this?’ and ‘what are you doing here?’.

“It wasn’t really about how they could improve what they are doing, which is what we wanted to get round to and slowly we worked our way through that and had some very good discussions about improving what they’re doing.

“They can see the change and that’s what’s really important about the change, we’re now getting really good performance from them and they’re being paid for it.”

One of the key changes the charity has brought in is farmer field schools, where people have the chance to learn about best practice on their land, business and other subjects.

About 7,000 farmers have graduated from the schools since they were first launched.

The organisation has also introduced an electronic system for paying the farmers as well as recording their yields, meaning they get paid for what they pick where before they would potentially be ripped off by the tea estates.

The foundation has also introduced a bonus system and interest-free loans to help farmers cover the cost of fertiliser and other necessary tools.

At the same time the farmers are being schooled in corporate and management skills so that they are ready when they gain full control from the foundation.

And Sir Ian is adamant that this hand-over, which had initially been estimated at seven years, will not take place until he is satisfied the farmers are ready.

He said: “The key thing is that whoever we hand it over to will have the exact same motivation we have: how can we improve the livelihood of smallholder farmers not how can I make some money out of this for myself or how can I make the dividend or all the other things you might do.

“So that’s where we cease being a business because all the benefit must go to the smallholder farmers.

“I think on one it could be reasonably close and then the other I don’t think it will happen within the seven years.

“But that’s what the deal said, we’ve got to achieve certain financial standards and you’ve also got to get the governance correct.

“And that’s been absolutely clear all the way through this and the government of Rwanda were involved with that and they know what’s going on.”

The partnership with the government has been so successful, in fact, that the charity is in the process of setting up two more factories in Rwanda, and another in Tanzania, with surrounding plantation lands.

The Rwandan sites, at Kihebo Munini in the south and Rugabano in the west, are not traditional tea planting areas.

However the acidic land, which inhibits other plants from growing, is ideal for tea.

Prior to the launch of the new sites, which are being run by British-Dutch company Unilever and Luxmi, from India, many of the population were living well below the breadline.

According to the World Bank’s classification, 40% of people were living below the poverty line, $190 per year, and 16% lived in extreme poverty, below $130 a year.

However when the factories are up and running, 10,000 farmers are expected to benefit from the industry, with national production boosted by about 19,000 tonnes.

The total investment for all three projects will come to about £86million, with about £54million for the investment in the three new factories, and £32million to finance the tea planting and to set up the service companies to assist the farmers as well as pay for fertiliser and other tools.

The tycoon, who retired from the North Sea industry the same year that the African venture began, was inspired to take up the interests of the farmers after he met a group in Tanzania, where the charity also has interests.

He said: “I met them in a small hut, there was about 10 of them and we had a translator and they had no education, and no negotiating capability whatsoever.

“They were clearly to some extent being taken advantage of by some of the big tea estates who never considered the ways of helping the smallholder farmers to get more tea for their factories and that just said to me this is just not right.

“And secondly I felt we could do something about it.”

And while he stressed their goal was still a long way away, he conceded that he was cautiously optimistic about their success so far.

“I mean to tell you, honestly that was the start, this is now a story of a terrific management team working in Africa, both here and in Tanzania, who are doing all the right things and helping their country to help themselves,” he said.

“This is sustainable, it really is, because we’re adding huge value to the land by improving the tea in some areas and planting new tea, now you can’t take that away.

“We’re significantly improving the farmers’ knowledge and capability you can’t take that away.

“And we’re significantly improving the economy of the region and you can;’t take that away, this is long-term sustainable, as long as the people factor doesn’t get in the way,” he added.

Government backs ‘noble’ work helping farmers

The foundation has said the support and backing of the government has been key to its progress.

Tea plantations make up a very low percentage of all farm sites in Rwanda but it is one of the country’s biggest exports.

The crop can also help to consolidate land in the country, which is characterised by its hills and valleys and “fragile landscapes” which are susceptible to landslips and flooding.

As a result, the government, led by President Paul Kagame, has a strong commitment to supporting the industry.

Bill Kayonga is chief executive of the national agricultural export development board (Naeb), which is part of the ministry of agriculture.

He has praised the “noble” work of the foundation in improving the livelihoods of farmers.

“The Wood Foundation is very important in the sense that it brought a different way of development to Rwanda.

“It combined a philanthropic approach including improving farmer livelihood with building their capacity, helping them learn to grow teas better, to harvest teas better and how to process and market their teas so that ultimately they’ll get a better income.

“For example if you look at the price they were getting before the foundation took over in about 2012, there’s been about a 70% increase in price.

“Equally their yields have improved by almost 50% it’s been a very positive approach.

“So it’s very noble of the foundation to work with the farmers so that by the time they take over the factories they will be good managers.”

Handouts ‘condition people not to think’

The head of the foundation’s Africa division has said it is vital to end the “culture of handouts” in order to alleviate the poverty which plagues much of the continent.

David Knopp has been the charity’s director in the region since 2008 and has been a key player in the transformation of the tea industry.

And while he said it may sound like a cliche, the phrase “give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime” was the basis for much of the charity’s activity.

He said: “I think one of the problems with development in Africa is there’s been a fairly significant culture of handouts.

“People that come very well intentioned with nothing but the best motives but when you come and you just give handouts it distorts markets.

“It distorts the emergence of real private sector activities and it conditions people not to think for themselves and plan for the future.

“And it’s all good and fine for that period of the subsidy but when it leaves then what? You’re often in a worse position than when you started.

“So everything we want to do we want it grounded in the private sector.

“It has to be commercially viable and has to be able to stand on its own two feet but with an eye for the little guy.”