Escalating costs of fertilisers and transport are the major constraints that might compel
The government of Rwanda targets to earn $91 million (about Frw50 billion) and produce 36,000 tonnes yearly by 2012.
Alex Kanyankole the director general of OCIR-THE said that the main reason why these two factors are a major challenge to the sector is because OCIR-THE and other players in the market in Rwanda have no control over them.
Rwanda requires fertilisers to improve the quality and quantity of soils where tea is grown. It is hoped this will increase the competitiveness of Rwandan tea internationally. Rwanda imports fertilisers from different European and Asian countries.
“By the time fertilisers reach Rwanda they are 40 per cent to 50 per cent more expensive compared to Kenya. OCIR-THE and the growers of tea, have no direct influence on this,” he explained.
He added that a tonne of fertilisers from the factory costs $300 including transport costs to Mombasa or Dar es salaam. And that by the time it reaches Kigali, it costs $450 to $500 which means $150-200 increment is a result of transport costs.
Kanyankole however said that they have addressed this issue to government and hopes that these expenses are likely to reduced by between 15 percent and 20 per cent. “We hope that the proposed East African railway line will help reduce the transport costs."
The New Times
