The government is seeking an investor to acquire Huye Feeds, a factory based in Huye District, within the economic trade zone of the Southern Province, according to information from the Ministry of Finance and Economic Planning (MINECOFIN).
The animal feed factory is worth about $4 million, as per information from the Ministry of Agriculture and Animal Resources.
On September 14, 2024, MINECOFIN issued a request for proposals (RFP) meant for the selection of a private investor to acquire the factory.
Initially, the ministry set October 28 (before 3:00 pm Kigali Time) as the bid submission deadline [by interested investors], but it extended the deadline to November 12, 2024, before 3:00 pm.
The Minister of State in charge of Public Investment and Resource Mobilisation at MINECOFIN, Mutesi Rusagara, told The New Times that the government invested in Huye Feeds limited in 2016 to meet the growing demand for animal feeds and reduce dependence on imports.
"By selling its stake in Huye Feeds, the government aims to attract private investments in the animal feed sector,” she observed.
On the expected impact from the move, she said "this will ensure that Huye Feeds Ltd expands its operations and capacity, creates job opportunities and caters to both local and export markets.”
She pointed out that the privatisation process is currently underway and the final results will be communicated in due course.
About the factory
Huye Animal Feed Processing Plant, registered as "Huye Feeds Limited," was established in 2017 in partnership with the Republic of Korea, according to MINECOFIN.
It indicated that the Government of Rwanda owns 100 per cent of the factory – meaning it is the sole shareholder in the factory.
The firm’s mandate is to boost the animal feed production industry within Rwanda, with the primary objective of producing quality feeds for poultry, cattle, pigs, and fish, as well as providing drying services for post-harvest treatment.
Its facility consists of a 1,200-square-metre warehouse. It includes a poultry feed manufacturing line, a fish feed production line, and an extruder machine and all associated tools.
It has an installed processing capacity of 40 tonnes per day for the poultry line (comprising dedicated lines for chicken, cow, and pig feed) and can produce four tonnes per day of extruded fish feed.
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Regarding raw material supply, the factory has contracts with 50 suppliers according to their specialisation (soya, maize, sunflowers meal and cake, soybean meal, meat and bone meal, fish meal, limestone, bone meal, rice brans, maize brans, additives premixes and processed proteins, among others).
It has quality standards certifications included that are awarded by the Rwanda Standards Board (RSB) and HACCP (Hazard Analysis and Critical Control Point), which is a systematic approach to the identification, evaluation, and control of food safety hazards.
Huye Feeds stands among six other registered animal feed processing companies in the country, with an annual feed production capacity of 12,000 tonnes, MINECOFIN indicating, adding that all the six have a combined installed capacity to produce 163,000 tonnes per year.
The demand for animal feed is projected to grow, driven by rising populations of various livestock species, according to MINECOFIN, which indicated that this increase in livestock is a response to the growing demand for meat and other animal products such as milk, eggs, and fertiliser.