Rwanda seeks investors for three underperforming agro-processing factories

By The Inspirer.

The Government of Rwanda has officially put three state-owned agro-processing factories on the market, aiming to address persistent operational and financial challenges.

The factories include Rwamagana Banana Wine, Nyabihu Potato Company Ltd, and Rutsiro Honey Ltd, all established under the government-led “Uruganda Iwacu” initiative. The decision was announced in a public notice issued on 10 December 2025.

The National Industrial Research and Development Agency (NIRDA) invited qualified and interested investors to purchase the government’s shares in the three factories, noting that NIRDA is the majority shareholder in all of them.

NIRDA Director General Christian Sekomo Birame told Parliament’s Public Accounts Committee in July 2025 that the factories have failed to operate at full capacity due to limited financial resources.

Government funds have been largely used to cover operational costs such as raw materials, staff salaries, security, and sanitation, but this has not been enough to stabilize production.

According to Birame, Rwamagana Banana Wine is operating at around 20 percent of its capacity, Rutsiro Honey Ltd at between 30 and 40 percent, while Nyabihu Potato Company Ltd is running at below 10 percent.

The factories have repeatedly been cited by the Office of the Auditor General as loss-making entities due to continuous government financing without generating sustainable returns.

Nyabihu Potato Company Limited, established in 2014 and operational since 2018, processes Irish potatoes into value-added products. Its shareholding includes NIRDA with 52 percent, the Business Development Fund with 46 percent, Nyabihu District with one percent, and cooperatives COTEMU and COAMU jointly holding one percent.

The factory is located in the Mukamira Industrial Zone in Nyabihu District and occupies a built area of 1,607 square metres within a total land size of 6,911 square metres.

The plant is equipped with modern machinery capable of processing nine tonnes of potatoes per day, producing sliced potatoes and French fries for the domestic market, including supermarkets, hotels, and open markets. Its products are sold in 25g, 50g, and 100g packages, and the company plans to introduce additional potato-based products.

As of May 2025, the Ministry of Trade and Industry reported that 116 cooperatives, representing more than 96,000 members, are involved in the potato value chain nationwide, yet only two factories currently process potato products.

Rwamagana Banana Wine, which started operations in 2018, processes bananas into wine, juice, and alcoholic beverages.

NIRDA owns 99 percent of the shares, while APPROJUBAAR, which supplies raw bananas, holds one percent. The factory is located in the Rwamagana Industrial Zone and was designed to process four tonnes of bananas per day, producing wine, juice, and alcoholic beverages.

The factory produces Inkangaza and Surwa Banana Wine, which are sold through supermarkets, hotels, and other outlets. It is also preparing to launch Surwa Banana Juice.

During the 2024/25 fiscal year, bananas used for brewing amounted to nearly 563 tonnes. Data from the Rwanda Standards Board shows that more than 50 enterprises operate within the country’s banana value chain.

Rutsiro Honey Limited, built in 2015 and operational since 2018, specializes in honey processing. NIRDA holds 78 percent of the shares, Rutsiro District owns 19 percent, and the UNICOAPIG cooperative holds three percent.

The factory occupies 4,244 square metres and is equipped with modern processing machinery capable of handling 500 kilograms of honey per day.

The honey processed at Rutsiro Honey Ltd is sold locally and exported to Dubai, the Democratic Republic of Congo, and Oman, and the company has begun exporting to China, Germany, and the United States. Its flagship product, Gishwati Natural Honey, is sourced from bees in the Gishwati Forest and is sold in packages ranging from 250 grams to seven kilograms.

The company also produces a ginger-infused honey drink, Umunezero H&G. National honey production rose from 7,240 tonnes in 2023 to 7,621 tonnes in 2024.

Explaining the decision to sell the factories, Dr. Birame told Parliament that NIRDA had informed the Ministry of Finance and Economic Planning that it lacks the financial capacity required to scale the factories to profitable levels. The government opted to sell the factories to stop ongoing losses.

Before listing the factories publicly, the government first offered its shares to existing shareholders, who were unable to acquire them.

Economic analyst Straton Habyarimana noted that state-led commercial ventures often struggle to generate profits because public managers tend to operate as civil servants rather than business owners, which affects efficiency and accountability.