Investors from Slovakia, owners of ROKOSAN Company, are set to construct a factory in the industrial park of Bugesera District that will produce ‘organic fertilizers’ from poultry feathers, cattle hooves and horns.
Slovakia is a landlocked country in Central Europe with $21,529 GDP per capita.
Recently, the Minister of Trade and Industry, Béata Habyarimana received a delegation composed of members of ROKOVIA, ROKOSAN RWANDA, Slovak Agency for Development, Investment and Trade (SARIO) and economic diplomats from Slovak embassy in Nairobi.
SlovakAid, an official Development Assistance of the Slovak Republic is an intrinsic instrument of the Slovak foreign policy, which to a large extent shapes Slovakia’s relation with aid recipients and relevant international organizations.
Slovakia shares the responsibility for global development and poverty reduction endeavors in developing countries, aiming to promote their sustainable development.
The purpose of the delegation was to install the foundation stone at the site in Bugesera District for construction of an organic fertilizer factory along with presentation of cooperation opportunities between Slovak and Rwandan businesses.
Adam Szöke, who works with Rokosan International that established a branch in Rwanda last year, told Doing Business that the €20m investment aims to bring the revolution in the production of animal waste into organic fertilizer by setting up processing plants and collection points across the country.
"We came to set up an organic fertilizer plant that produces fertilizers from local resources. We are going to use animal waste specifically hoofs and horns of cattle animals as well as poultry feathers from the chicken farmers. This will give opportunity to Rwandan farmers,” he said.
Feasibility studies, he said, show that raw materials (animal waste) are sufficient in the country.
Overall, statistics show that the number of cows rose steadily from 813,417 in 1992 to 1,449,888 in 2020.
Rwanda’s poultry population with feathers as raw material increased from 3.5 million in 2010 to 7.6 million in 2018.
In November 2020, Rwanda launched an Rwf15 billion project to increase poultry yields.
With expected availability of raw materials, he said that organic fertilizers plant is expected to produce 20 million litres of organic fertilizers from hooves, horns and poultry feathers per year.
However, he said, this will be achieved in phases.
"Apart from Slovakia where we have a plant, the second plant will be located in Rwanda. We are planning to start production of organic fertilizers by the second quarter of 2022,” he said.
He added the investment will also set up a laboratory to conduct soil analysis and analysis of the crops suitable for the fertilizers.
"The organic products enhance the environmental quality of soil and ground water. We also want to invest in food processing, animal food production and many agro-commodities,” he said.
He noted that organic fertilizers create a huge demand for organic crops on the global market as organic farming increases both yields and quality while protecting the environment.
Organic farming is an agricultural system that uses ecologically based pest controls and biological fertilizers derived largely from animal and plant wastes and nitrogen-fixing cover crops.
Modern organic farming was developed as a response to the environmental harm caused by the use of chemical pesticides and synthetic fertilizers.
Fertilizer demand
He said that the new technology aims to satisfy the fertilizers demand on the Rwandan market.
Currently, there is still low uptake of fertilizers use in Rwanda which avails investment opportunities.
The use of fertilizers in the season A increased from 29,917 tonnes to 43, 757 tonnes, a 46 per cent increase compared to the same previous period last year.
However, the ministry of agriculture says the uptake is still very low considering the needed quantity per hectare to increase productivity.
Government seeks to increase fertilizers use to 75 Kilogrammes per hectare.
However, the uptake is currently 46 Kilogrammes per hectare, an increase from 39 Kilogrammes per hectare in 2019 according to figures provided by the ministry.
The uptake of fertilizers is expected to grow to 51 Kilogrammes per hectare in 2020/21, 60 Kilogrammes in 2021/22, 65 Kilogrammes in 2022/23 and 75 Kilogrammes in 2024.
Adam said that besides satisfying the demand on the local market, they also target export markets including the East African region and Middle East.
"We are working with the Rwanda Agricultural Board and Trade and Industry Ministry to facilitate studies among others,” he said.
Adam said that the investment is expected to employ over 150 people at the fertilizer factory.
" However, in food processing and other agribusinesses to Rwanda, employment opportunities is up to over 1,000 Rwandans,” he said