TOP STORY: Rwandex coffee factory under liquidation

Before closing, Rwandex was exporting between 5,000 to 7,000 tonnes of ordinary coffee, fetching between $9 million to $10 million respectively The liquidation of the country’s former leading coffee processing and exporting company is in final stages according to information availed to The New Times. In a public invitation for the tendering process, issued by the liquidation committee, the purchase of Rwandex coffee factories will be in two bids, one for coffee factory at Gikondo in Kicukiro district and another of the coffee factory located in Rubavu Western province. The company terminated its contracts with suppliers and laid off 300 administrative employees. Liquidation of Rwandex means that it has been brought to an end, and that the assets and property of the company will be redistributed. Usually a company faces liquidation after its management abruptly suspends operations. Local banks are up in arms demanding management of the coffee firm to pay back the Rwf3 billion borrowed from different banks for recapitalization of the company, some years back. The government through the privatisation secretariat announced its closure in February last year. Bank de Kigali (BK) has named the company to be the biggest bad client ever demanding Rwf 2.169b. Banque Populaire du Rwanda is also demanding Rwf650m while COGEBAQUE demands a tune of Rwf450m. According Jean Marie Gacandaga Risk Manager, non performing loans will reduce to 7.6 percent from 9.72 percent after they recover the loan. Before closing, Rwandex was exporting between 5,000 to 7,000 tonnes of ordinary coffee fetching between $9 million to $10 million respectively. Government had a 51 percent stake through Ocir Café and Ocir The, the company’s export volumes dropped from 50 percent in 2003 to 15 percent in 2004. Ends

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TOP STORY: Rwandex coffee factory under liquidation