Young greenpreneurs from different cities across the country are seeking easy access to finance to increase the production of organic fertilisers and pavers into waste.
Noel Nizeyimana, the Managing Director of Green Care Rwanda Ltd, told Doing Business that he processes 10 tonnes of waste every day, transforming them into fertilisers as well as pavers made from plastic waste in Huye district.
Waste entering into the Huye-based recycling plant is dominated by organic waste, which accounts for 75 per cent of the collected waste. Recyclable waste such as plastics is 8 per cent, papers and cupboards 6 per cent and others unrecyclable waste such as textiles 2 per cent, construction debris 1 per cent, grass 3 per cent and other hazard waste make up 3 per cent.
"We produce between 600 and 800 tonnes of packed organic compost per year by using the organic waste and 20 square metres of pavers from plastic waste per day. We sell one square metre at Rwf8,000,” he said.
The firm’s capital, he said, has increased from the initial Rwf1 million to Rwf35 million.
However, funding constraints are undermining their efforts to process waste into other products on a large scale, he added.
"We need a big machine that can help in mass production of pavers. For scaling up our organic fertilisers production business, we need the capital for replicating the waste management in other secondary cities and even in Kigali,” he said.
Nizeyimana said that increased funding would help attract more youth in waste management.
"Banks do not consider solid waste management projects as bankable because it is social business. Even leaders and decision makers do not understand the concept. It should have a specific funding and financing model as well as technology transfer to be sustainable,” he stated.
Nizeyimana added that Covid-19 pandemic has also derailed the progress to increase production and therefore access to recovery fund is needed.
"Our sales decreased during the pandemic and the organic fertiliser production reduced from two tonnes to one tonne per day,” he said.
The recycling plant currently employs 25 people.
"We work with maize, chia and rice farmers in Huye district and we have 15 cooperatives that buy our organic fertilisers and four suppliers who distribute to other farmers,” he said.
Felicite Nayinganyiki, a graduate from university of Rwanda in agriculture, founded Ineza Sustainable Agriculture Ltd which produces organic fertilisers from landfill site in Gicumbi district town.
She told Doing Business that she produces 100 tonnes of organic fertilisers per agriculture season and sells one kilogramme at Rwf50.
She said she also produces more 50 tonnes that are not packed in sacks per season.
"About 80 percent of the population in Gicumbi district are farmers. Therefore, I tapped into opportunities availed by waste,” she said, adding that she is currently employing 15 people.
The greenpreneur said that she is also facing financial constraints to expand the business.
"Most of the youth have no collateral that can help them access loans in banks. We need modern machines to increase production. I also need a building for my operations because we are still operating in open space and we do not work when it rains,” she said.
She said there is a need for availing loans to young greenpreneurs at lower interest rates.
"Agriculture needs particular loans. We also need partners who can help improve our business ideas and leverage financing,” Nayinganyiki said.
Dominique-Xavio Imbabazi, another graduate from agriculture in university Rwanda, who recently won Rwf1.5 million award for the innovative project is producing one tonne of organic fertilizers per week in Musanze district.
He said he mixes earthworms with waste to produce compost.
The founder of Golden Insects Ltd said he also sells one kilogramme of fertilisers at Rwf200.
The case for scaling up organic farming
The organic fertilizer production, which promotes organic farming, is one of agro-ecology practices that need support to be scaled up across the country, agricultural experts have said.
Agro-ecology promotes farming practices that promotes environment protection through agricultural systems such as use of organic fertilizers and eco-friendly pesticides to ensure organic farming to produce healthy food without harming nature.
Thacien Munyamahame, the country programme manager at Youth in Agro-ecology and Business Learning Track (YALTA initiative told Doing Business that they are seeking to support those who aspire to agro-ecology in Rwanda.
"The youth in agro-ecology need access to market and access to finance so they scale up their businesses,” he said.
He said that they are in discussions with the ministry of agriculture and animal resources to ensure agro-ecology is well integrated in agriculture planning and policy implementation.
"Through agro-ecology people can do business because there are a lot of opportunities. We seek to support youth who recycle waste to produce compost. More skills in agro-ecology. Government should also provide incentives to youth in agro-ecology,” he said, adding that access to finance is still a challenge.
So far, the initiative, he said, is working with between 150 and 200 youth and women in agro-ecology of whom some are producing organic fertilizers and using them in the farming businesses they have started.
Jean-Chrysostome Ngabitsinze, the Minister of State in the Ministry of Agriculture and Animal Resources, said that they are working with the ministry of environment to ensure agricultural practices are more eco-friendly.
According to the ministry of environment, there is a need for $3 billion to the green agriculture sector by 2030 and integrating agro-ecology could both ensure climate resilient and food security.
Among the priorities, according to Theophile Dusengimana, the Environment and Climate Change Policy Specialist at the Ministry of Environment, "There is enhancing agro-ecology, crop variety development, and promoting climate resilient cultivars.”
"Implementing agro-ecology would contribute to farming and managing crops, livestock, forests, fisheries that are viable and resilient to climate change to ensure food security and alleviate poverty,” he said.
The business to produce organic fertilizers employ a number of other youth in Huye district.
The Greencare Ltd is processing 10 tonnes of waste to produce organic manure.
The produced organic fertilizers are packed in sacks and distributed.