Govt seeks to increase tea production through factories

Government is in process of selling off all its tea factories and plantations in order to increase competitiveness and processing capacity while retaining high quality of Rwanda’s tea on the international market. This was revealed by Ocir-Thé’s Director General, Anthony Butera during an interview with Business Times. He said government will embark on Public and Private Partnership (PPP), a programme that allows both government and the private sector to own stakes in local companies. According to Butera, Oci-Thé is targeting 9,000 hectares of tea gardens from extra five tea factories by 2012. The agency is also planning to increase tea production by 35,000 metric tonnes by 2012. Last week, the government signed a share purchase agreement with Olyana Holding, an American company that purchased 60 percent stake into Gisovu Tea Company. Government is also planning to sell off 45 percent and 60 percent stake in Gisakura and Kitabi tea companies respectively. Butera disclosed that the privatisation of Gisakura and Kitabi tea companies is in progress and Ocir-Thé announced the bids already. The agency is in the process of evaluating technical and financial bids before presenting it to cabinet for approval. Ocir-Thé management says that privatisation of Gisovu is aimed at increasing its performance, production and better management. For a long period, Gisovu has been offering the best teas from Rwanda on the Mumbasa tea auction market. “Gisovu has been producing 1,800 metric tonnes per annum and putting it under the management of the private company will increase on its performance and it will compete more on the international level,” Butera added. Tea is one of Rwanda’s leading export revenue earner. Ends

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Govt seeks to increase tea production through factories