Eleven investors are set to start carrying out commercial farming on 4,000 hectares in the Gabiro Agribusiness Hub project in April this year, with a view to increase the country’s exports and substitute imports, The New Times understands.

The hub is located in Nyagatare and Gatsibo districts in the Eastern Province. It was developed to cater for the country’s food security needs, and offset the trade balance where imports still outstrip exports.

It was initiated through a partnership between the Government of Rwanda and Netafim – an Israel-based firm considered a global leader in irrigation.

According to the Ministry of Agriculture and Animal Resources, the project also aims to develop an advanced agricultural eco-system and modern value chain with advanced water infrastructure, innovative irrigation systems, high-value agro-processing operations, and other agrotech activities across the value chain.

It uses a drip irrigation system — a type of irrigation that has the potential to save 80 per cent of water, and nutrients by allowing water to drip slowly from tubes to the roots, either from above the soil surface or buried below the surface.

Government officials say that the phase, whose development is nearing completion, – at an estimated cost of about $73.9 million – consists of 5,600ha of which 4,000ha, which shall be allocated to commercial farming and leased to members of the private sector for a minimum tenure of 49 years (renewable).

Under the project, the lease fee was fixed at $375 (about Rwf375,000) per hectare every year, with a 2 per cent annual increment from the third year, according to prices contained in the Gabiro Agribusiness Hub Ltd’s call for proposals to lease Commercial Land that was issued in February, 2022.

This means that the 4,000 hectares to be leased to investors could generate a fee of at least Rwf1.5 billion per year.

The same call for proposals indicated that the water fee is fixed at $19c (or about Rwf200) per cubic metre (m3) used.

Hanson Micomyiza, the Managing Director at Gabiro Agribusiness Hub, told The New Times that the investors who will lease the land in the project were notified, and told the size of the land they will be allotted.

He said that 31 investors applied for the land, "and we screened and allocated land to only 11. It was highly competitive.”

He added that overall, the infrastructure development was at over 90 per cent, and it is expected the project infrastructure development will be completed in April this year.

Roads to carry the agricultural produce to the market were completed, while water infrastructure was at 90 per cent, he elaborated, while electricity supply was at 85 per cent – pointing out that an estimated eight megawatts of power will be needed to run the project operations.

Horticulture produce and cereals as major crops

Micomyiza said that the agribusiness investors will basically grow vegetables, fruits and cereals that are much needed in the country, and contribute to the country’s exports, and food security.

For fruits, he said that they include avocados, mangoes and strawberries.

For cereals, he said that they include maize and soybeans. These are two major cereals that are needed for both human consumption and by the factories that make feed for livestock animals.

Dieudonné Twahirwa, an agribusiness entrepreneur mainly engaged in the chilli value chain, and one of the investors, told The New Times that he was allotted 400 hectares that he will use to grow chilli.

Twahirwa, who is also the Chairman of Agriculture and Livestock Cluster at the private Sector Federation (PSF), said that the best aspect of the land in Gabiro Agribusiness Hub project is that it is consolidated, and equipped with the required infrastructure, including roads, and irrigation technology.

On September 13, 2019, Twahirwa landed a five-year deal to supply 50,000 tonnes of dried chilli worth $100 million (over Rwf100 billion) every year to China, a move that was expected to contribute to Rwanda’s agricultural exports growth.

"Agricultural productivity could increase by about 20 per cent because we will have a guarantee of sustainable water supply,” he said, adding that the transport of agricultural inputs and output will be easy.

"There will also be the sustainability of supply occasioned by the sizable land in the same place,” he said, adding that there have been issues in chilli production because of scattered small plots of land belonging to many farmers.

Meanwhile, he said that they were considering approaching the Government to reduce the cost of water per square metre, expressing that it was high.

"We hope that we will discuss the issue and agree on a price that benefits us all,” he said.