Oil firm seeks 400 hectares of land

A local oil processing firm, Ikirezi Oil Processors, has asked the government to avail 400 hectares of land to enable it to grow raw materials for its business.The company was recently listed among several Rwanda’s firms that need a state bailout in the Karisimbi Business Partner report.In an exclusive interview with The New Times, the firm’s Managing Director, Dr Nicholas Hitimana, noted that lack of enough materials had hampered the company’s efforts to boost their export capacity.“We had secured enough market in UK, South Africa and France for our products for the next five years. We have commitments from our buyers to buy our products; but securing land to grow our raw materials to meet the required quantity is still our major challenge,” Hitimana explained.Ikirezi produces oils from local plants including geranium, lemongrass, eucalyptus and patchouli mainly for export. The oils are mainly used in making perfumes and pharmaceuticals. Hitimana said they intend to increase the production of major raw materials including geranium and patchouli to 250 and 150 hectares, up from the current 30 and two hectares, respectively.This will in turn see the export of geranium and patchouli swell to four and six tonnes, respectively, by the year 2015, if the firm secures the required land, according to Hitimana.“We need the government to partner with us, facilitate us to access enough land to grow these raw materials so that we live up to our commitment with customers.” This, Hitimana added, would also lead to increased export revenues of about $2 million up from the present $100,000 annually.Last year, the firm exported about 400 kilogrammes of geranium alone and projects this to climb to 700 kilogrammes this year.The firm mainly, works with poor rural communities.Currently, about 300 people in Kirehe, Ruhango, Nyagatare and Gasabo districts, benefit from the project and the number is slated to drastically rise to 150,000 by the year 2015, says Hitimana.“We talked to concerned institutions – ministries of Trade and Commerce, Agriculture and Rwanda Development Board – to help us secure land for lease, especially in the districts of Kamonyi and Ruhango, which are favourable for quality raw materials,” Hitimana explained.“We want to make a viable business that also empowers the rural people to get out of poverty; we don’t need land for the sake of it. We need it for production and the benefit of the less privileged.“Those providing us with funds need security; they ask us whether we have enough land for expansion as a condition to access their funds.”The firm, which began operations in 2006, seeks to invest $1.3 million. The company has three shareholders including Hitimana. Pastor Antoinne Rutayisire and Bishop Augustin Mbonabandi of Kigeme diocese in Nyamagabe District.The Karisimbi report listed eight local firms, mainly dealing in agri-business, including Ikirezi as ‘underperforming’ but with the potential.Others are textiles manufacturer, Utexrwa, Sotiru [wheat processor], Sonafruits [fruit processor], New Rucep, a hide and skins processor, Rubirizi milk processor, Rabi [beans], Sopar [animal feeds] and Ikirezi.Experts believe capacitating the said firms would have a great impact on the economy.However, Vivian Kayitesi, the investments coordinator at RDB, told The New Times that they are in the process of reviving the beleaguered firms.“We have worked with the Ministry of Agriculture to map-out areas – land – available for agriculture as one of the ways to support those firms that face land shortage.“We are committed to looking for ways of assisting these firms. We want these companies to effectively work,” she added. She further disclosed that some investors had expressed interest to reinvest in some of the affected firms.“Karisimbi developed for us revival plans, a pivotal idea on how to improve the performance of local firms. We are trying to get investors, as quickly as possible, who don’t want to start afresh but would rather re-invest in existing companies,” she explained.She noted that some firms face managerial and financial difficulties. “We are trying hard to iron out these problems for them to continue their operations effectively.”Rucep, Rubirizi and Sotiru alone, need about Rwf1.2 billion to get back on their feet.Rubirizi, which was ordered to closed down last year by Rwanda Bureau of Standards (RBS) requires a capital injection of Rwf600 million to construct new facilities as prescribed by the latter, while Rucep need Rwf212 million.The Musanze-based wheat firm, Sotiru, also, needs Rwf385 million to import raw materials and to carry out repairs.

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Oil firm seeks 400 hectares of land