Rwanda’sflower sector players are upbeat following the Cabinet approval of a partnership deal between the government and a Kenyan-based company, Shalimar Flowers, to develop the country’s cut flower industry.

Last week, the Cabinet published a resolution supporting the joint venture that will see Shalimar invest an estimated Rwf2.7 billion into the venture with Bella Flowers, George William Kayonga, the National Agriculture Export Board (Naeb) boss, said.

He said feasibility studies have already been carried out for the project where government will own 75 per cent shares.

The 35-hectare project at the Gishari Flower Park in Rwamagana District that was being developed by government was earlier expected to start production of cut flowers by mid-last year, but the venture was plagued by numerous challenges, including procurement delays and low funding.

In June, Naeb projected that the venture would start production this year, which is now not likely, according to experts.

Rwanda currently grows summer flowers on a small-scale mostly by co-operatives and individual farmers, which it sells locally and in Europe. This has meant the country imports roses among others to meet the local demand.

Therefore, the approval of the Gishari Flower Park joint venture deal by government could be the turning point of the sector that has struggled for years to make headway.

Experts say the flower park could soon start producing cut roses within three to six months since most of the necessary infrastructure is already in place, including greenhouses, irrigation systems and power.

Floriculture was identified by the government as a ‘quick win’ sector that could enhance the country’s foreign exchange receipts in a short time, earning $220 million per year by the year 2017.

Besides the production of intermediate rose flowers at Gishari Flower Park, the government looks to develop other sites for flower production and mobilisation of existing small scale summer flower producers to ensure quality flowers for the export markets, according to Naeb’s Rwanda Floriculture Development Annual Report for 2013.

Rwanda’s flower industry is developing at a very low rate of 4.4 per cent in terms of increased areas under flower production, the report adds.

Albert Nsanzimana, an investment officer at Naeb, however said this will only be possible after they have finalised the business plan.

"We expect to start production of cut flowers on 10-hectare piece of land by the end of this fiscal year,” Nsanzimana told Business Times.

Dr. Ndambe Nzaramba, the Naeb deputy director general in charge of exports and market operations, said the initiative is part government strategy to diversify exports.

Government is targeting to have 100 hectares of land under flowers production in the next five years to be able to sustain the export market demand.

Summer flowers production is currently about 15 hectares mainly in high altitude areas of Northern, Western and Southern provinces in Rulindo, Musanze, Rubavu and Huye districts.

The country produces 1.4 million stems of summer flowers per year, but with extension of area under flowers, improvement of cultural practices and introduction of other high value flowers can achieve a production of more than 54 million stems per year and earn a foreign exchange of 8 million euros (about Rwf7.2 billion) per year by 2015, according to last year’s Rwanda Floriculture Development Annual Report.

"However, only 50 per cent of the flowers harvested get to the local market due to poor production and post-harvest handling techniques, requiring training of flower farmers and stakeholders to minimise the losses,” it adds. Rwanda mainly produces white arums, Tuberose Agapanthus Gladiolus, Alstromelia Carnation (summer flowers) and other minor varieties.

Shalimar Flowers

The decision to form a joint venture with Shalimar Flowers Ltd was informed by the company’s experience and expertise of the investor, Nsanzimana said.

"The investor has been in the flower industry for decades and understands the market very well. We believe he will play a critical role in rejuvenating and expanding the sector,” he said.

The flower sector has attracted local investors because it is capital intensive, with an equipped greenhouse to grow cut roses is estimated at over Rwf500 million.