When farmers in Nyanza District got a Rwf6 billion irrigation dam in 2015, beneficiaries were expecting to earn a lot of income that would lift them out of poverty.

The dam with 1.82 million cubic meters and irrigation system has a capacity to irrigate 301 hectares in three sectors of Nyanza District; namely Rwabicuma, Nyagisozi, and Cyabakamyi.

The multibillion project was supposed to benefit 2,640 households but some of them, who invested in horticulture, are counting losses after they accused ‘exporters of fleecing them’.

Gerard Habimana, the president of farmers’ cooperative ‘Jya Mbere Muhinzi Nyanza’ told The New Times that they supplied Rwf34 tonnes of chili worth Rwf24.2 million to Diversity Venture Company Ltd but they only got a payment of Rwf2 million.

"Now, we are in a dilemma. We have no more capital. Some farmers have abandoned agribusiness because they are discouraged. We are trying to negotiate with other companies but it is yet to mature,” he said.

He said that the total post-harvest losses have amounted to ‘Rwf100 million’ considering the other produce that rotted away due to lack of market.

The farmers, who grow their crops on 50 hectares, had grown chili on 16 hectares.

The farmers had invested between Rwf2 million and Rwf3 million per hectare and each hectare yields between 7 and 10 tonnes.

They started to harvest in February, 2020 but ended up into unexpected losses.

"There are many farmers but the chili famers were 35 farmers. We were supposed to sell at Rwf700 per Kilogramme,” he said.

The New Times has learnt that the same issues have affected other farmers in other areas such as Kigali, Rulindo district, Kayonza, Kirehe and others.

Seeking justice

According to a copy which The New Times has seen, some farmers like Alexis Ndekezi have taken the exporters to courts and a pretrial conference will be held on November 19 at the Commercial High Court in Nyamirambo at 10:30.

It is not the first time that there have been wrangles between farmers and exporters are not the first that have affected farmers.

For instance in 2018, coffee dealers contracted to supply about 60 containers of unroasted coffee to a Canadian firm never got payment of Rwf4.5 billion. The firm later returned the coffee to the farmers, who suffered losses.

MPs’ recommendation

Edda Mukabagwiza, the Vice Speaker in charge of Legal Affairs and Government Oversight, told The New Times that MPs recently toured different parts of the country and are compiling reports and recommendations that also looked into farming cooperatives issues.

"We are compiling reports of what all MPs found during field trips. We are going to follow up and put all issues in recommendation. If the plenary sitting approves, we will also submit recommendations to the Prime Minister.

Concerning the issue of chili farmers, I told the Nyanza District administration to handle it. Again we recommend cooperative agencies to help farm cooperatives prepare contracts with exporters that will avoid further swindling,” she said.

Exporters react

Speaking to this paper, Marie Immaculée Mujawayezu, the Manager of Diversity Venture Ltd, admitted that they owe money to farmers in Nyanza but explained it is Rwf17 million instead of Rwf22 million as farmers say.

She explained that the issue was caused by Covid-19 disruptions adding that they are in wrangles with over 14 farming cooperatives across the country which they didn’t pay.

"NAEB suspended us but we requested to let us continue work so that we get income to pay farmers in installments. We need a meeting with farmers and NAEB for negotiations because if we do not open, we will not be able to pay them,” she said.

What NAEB says

NAEB Communication Officer, Pie Ntwari told this reporter that the Kenyan company had been swindling farmers since 2019 and therefore it was suspended.

"It was not due to Covid-19 impact that made the company struggle. Even before Covid-19, the company had been fleecing farmers in the country. NAEB asked that investor to pay farmers but refused. It has been breaching its contract with farmers. We can’t allow it to reopen if it doesn’t show trust to pay the farmers it swindled,” Pie Ntwari, NAEB Communication Officer.