The government has initiated talks with a newly formed consortium led by a UK-based advisory and investment firm, Silk Road Africa (SRA), in a bid to revitalise the country’s sericulture sector.

The development comes amidst the hunt of an investor for the country’s sole silk factory, whose operations have been at a four-year halt.

Silk Road Africa specialises in agriculture and industry.

Just recently, the firm signed a Memorandum of Understanding (MoU) with Switzerland-based Trudel Silk and US-based Solidaridad to form the consortium.

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Efforts to speak to the National Agricultural Export Development Board (NAEB) were futile by time of publication, but Chi Atanga, the Founding Director and chief executive of SRA confirmed the ongoing talks with the Rwandan government in an exclusive interview with The New Times.

Atanga maintained that "the newly formed consortium is in advanced discussions with the Rwandan government to revitalise the nation’s sericulture operations.”

Under the proposed partnership, he said that the consortium is looking to provide technical expertise, Trudel Silk’s specialisation in textile production, marketing and trading as well as expertise in sustainable and inclusive supply chain development.

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The plan, Atanga said, is to position Rwanda as a regional leader in silk production, fostering economic growth and sustainability.

"We are enthusiastic about working closely with the Rwanda National Agricultural Export Board and other key stakeholders. Despite challenges, we’re optimistic about Africa’s sericulture future, with Rwanda at the forefront,” he noted

He added, "Our consortium brings unique value beyond investment, know-how and market access – our NGO partner focuses, inter alia, on smallholder farmers, ensuring sustainable supply chains, crucial for long-term success and for rehabilitation and rejuvenation from the previous years stagnation.”

Rwanda has laid out an ambitious plan of expanding its silk industry and creating jobs, but the plans were distorted four years ago when HEworks Rwanda Silk Ltd, a subsidiary of Korea-based HEworks exited the market, leaving the country’s sole silk factory out of operations.

According to official data, the halt led to a significant decline in the production of silk cocoons on the local market and exorbitant woes for the country’s sericulture farmers.

It remains unclear whether the consortium will take over the existing factory.

However, Atanga confirmed to this publication that his team is expected to travel to Kigali for the final talks, which are due in early February.

What is on the table?

The government of Rwanda has pledged its support to the prospective investors, including the provision of all the five cocoon centres in the country, NAEB said in an earlier interview.

These centres also house machines used to unwind the silk from the cocoons produced by farmers, ensuring the silk is not damaged

"Based on the agreement, the government will also take over mobilisation of farmers and also provide technicians to support the investor in other extension services including post-harvest handling and market linkages.”

Sericulture is the rearing of silkworms for the production of raw silk used in the textile industry. It involves the farming of mulberry trees on which silkworms feed to produce silk cocoons with filaments that are processed to make fabrics or clothes.

The sector in numbers

Sericulture is relatively a young industry in Rwanda and requires continuous support to sustain and make the sector economically meaningful, according to NAEB.

As of 2022, the area under production was 2,872 hectares with 19 million productive mulberry trees, distributed among 3,693 individual farmers and 18 active cooperatives, it indicated.

The sector is dominated by smallholder farmers with small rearing houses (6m×5m). It also has six sericulture centers (Karongi, Nyanza, Gatsibo, Rushashi, Mulindi, and Rusizi) to support farmers with effective extension services and in rearing activities.

The highest annual fresh cocoon production was 39.4 tonnes (in 2019-2020), up from 3.3 tonnes in 2011/2012, data from NAEB shows.

Currently, Cocoons Production Centres (CPCs) have 29.8 hectares of land that shall be used by the investor for cocoon production.