Rwanda to construct $38m powdered milk factory

0

Rwanda is set to construct its first powdered milk factory in an attempt to boost profit for its livestock sub-sector.

This came after a joint venture firm owned by Rwandan investors and South African in collaboration with dairy farmers in Gicumbi District agreed to invest $38 million towards the development.

The powdered milk factory will be situated in Byumba Sector of Gicumbi District in Northern Province of Rwanda. Construction of the plant is expected to start by the end of 2020 and it will take a year for the factory to be completed so it will be completed by the end of 2021.

Also Read: Rwanda I&M Bank raises the limit on unsecured loans

The planned factory is set to be the largest milk-processing factory in the country and will offer major relief to the dairy farmers, it is the first of its kind in Rwanda.

The installed capacity of that factory will allow it to process 252,000 litres per day according to the Ministry of Trade and Industry. Through profits from milk sales, the dairy farmers will get a return of their investment which would take 5years to settle.

East African Dairies, a shareholding between TRIOMF East Africa and dairy farmers in Gicumbi District will own and operate the factory. Farmers will own 20% of the shares while TRIOMF East Africa will have 80%.

“We were struggling to get an additional market for our produce. This factory would be a relief for us as it will enable us to get a ready market for our produce. Overall, the cooperatives in Gicumbi District collect some 95,000 litres of milk per day. We have the will to process milk into powder because it can be easily and safely preserved, and there is also a market for that product in neighbouring countries such as (DR) Congo,” said Antoine Juru Munyakazi, Executive Chairman of TRIOMF East Africa.

The plant will manufacture powdered milk with the aim of creating cheaper and less perishable dairy products to increase uptake of milk. Powdered milk from the plant will also be sold into the Democratic Republic of the Congo (DRC).

Also Read: Rwanda High costs hinder uptake of digital services World Bank

Comments are closed.