Invest in new green-fields sites for tea production and processing, focusing on specialty teas, to take advantage of Rwanda’s excellent business climate.
Market opportunity:
Tea is Rwanda’s second largest export earner generating close to $40m in annual revenues.
Demand for specialty teas is growing strongly.
Global demand requires 60 million kg of tea be added each year to world supply.
High potential for growth in yields by up to 30%.
Over the last 2 years, the Rubayu tea plantation increased yields by more than 40% through improved agronomic practices demonstrating strong upside.
Investment Highlights
Existing produc6on is mainly Black CTC (crush, tear, curl), though exis6ng providers are expanding into orthodox loose leaf and green tea varieties.
$35m investment is required for five greenfields sites, including tea processing factories, at already identified sites in south-west of the country.
Investors can expect $1-3m annual net profits from tea factories and an IRR of approx 22%.
Government is commiung up to 130m in transport, electricity and water infrastructure around these sites, and is providing $22m to improve yields and smallholder productivity.
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