Inaugurated on Thursday, the plant is an addition to 17 existing tea factories in Rwanda and targets to process 4000 tons per year within ten years.
Luxmi Group from India, the mother company of Rugabano Tea Factory committed to investing between the US $28 to $30 million in tea farming.
The plant was given 438 hectares on which it runs operations and farms tea on 4000 hectares.
The Governor of Western Province, Alphonse Munyantwari said that apart from 1000 residents who have got jobs at the plant, the project also built houses for residents each at a cost of Rwf 12 million.
Minister Mukeshimana said that the factory will increase Rwanda’s exports.
“This will be among the first factories processing large quantities of tea inside the country. It will process 4000 tons per year and contribute to increased tea exports by 3% within two years,” she explained.
Luxmi and The Wood Foundation are biggest shareholders in Pfunda and Gisovu tea factories with 50% shares and 90% in Pfunda and Gisovu respectively.
The Director-General of Luxmi Group, Rudra Chatterjee said that they plan to expand investment in tea planation so that the plant can produce the finest tea in Rwanda.
Figures from Rwanda Agriculture Export Board (NAEB) indicate that 25,128 tons of tea were exported in 2016-2017 and earned US$74.5 million while 27 824 tons were exported in 2017-2018 netting US $88 million.