Rwanda Inaugurates Africa’s Largest Smallholder Tea Project with Global Backing

Staff Writer
2 Min Read

Rwanda has inaugurated the Kibeho Tea Factory in Nyaruguru District, Southern Province, marking the launch of Africa’s largest smallholder tea greenfield project.

Presided over by Minister of Agriculture Mark Cyubahiro Bagabe, the development spans 6,417 hectares of smallholder plantations and 720 hectares of industrial blocks.

Two modern factories will process an estimated 15,000 tonnes of made tea per year, generating more than US$45 million in foreign exchange.

Crucially, 50% of the tea price will go directly to farmers, raising household incomes and reinforcing Rwanda’s farmer-centered agricultural model.

The project is expected to create 25,000 jobs and deliver an additional US$30 million annually to smallholder households, reflecting Rwanda’s strategy of pairing export growth with inclusive development.

The Kibeho Tea Factory also benefits from strong international backing.

The Wood Foundation is a partner in the initiative, while the UK government provided up to Rwf 30 billion (about US$23 million) in support.

In total, the project is expected to mobilize US$135 million in foreign direct investment (FDI) for Rwanda’s tea sector.

Investment is led by Browns Plantations Rwanda, a subsidiary of Browns Investments PLC of Sri Lanka. Browns is a major global plantation group managing more than 25,000 hectares of crops in Sri Lanka.

In 2024, it expanded into East Africa through acquisitions in Kenya, Tanzania, and Rwanda, including the purchase of Lipton Teas and Infusions Rwanda, which manages 816 hectares and produces around 2,600 tonnes of tea annually.

Speaking at the inauguration, Minister Bagabe emphasized the project’s transformative potential: “This factory is not just an investment in tea, it is an investment in people — in farmers, in jobs, and in the future of Rwanda’s rural economy.”

With the Kibeho project, Rwanda strengthens its standing as a leading producer of high-quality specialty teas, while setting a continental benchmark for agricultural investment that benefits both farmers and the broader economy.

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