KIGALI, June 9 (Xinhua) -- Rwanda's National Agriculture Export Development Board (NAEB) has signed a joint venture agreement with a local firm, ProDev Bugesera, to boost the country's export potential of horticulture products, said a statement released Friday by Rwanda Development Board.
The parties held negotiations led by Rwanda Development Board and the Ministry of Agriculture and Animal Resources, setting out the terms and taking into account industrial, commercial and technological operations of the project.
An equivalent of 250 hectares in Bugesera district in eastern Rwanda has been dedicated to this project, with an initial capital investment of 700,000 U.S. dollars, which is 30 percent of the total 2.2 million dollar capital investment required for the entire project.
"The long-term objective is to carry out modern commercial farming in Gashora marchland and promote the growth of vegetables that have high export potential for Rwanda. The project will produce high value crops for export but also for high end markets in Kigali such as hotels and supermarkets as reflected in the business plan," the statement said.
George William Kayonga, Chief Executive Officer at the National Agriculture Export Development Board said their partnership with ProDev is "oriented towards the future and underpins the potential of one of the key economic sectors in the country."
He said this is a unique project that aimed at expending export base in horticulture.
This will be one of the largest production areas on one consolidated site for production of export vegetables since others are in small bits in different regions, according to Kayonga.
The Government of Rwanda continues to place strategic importance on the development of the horticulture sector, attracting investors through Rwanda Development Board to position the industry as a tool for export diversification and national development.
Emmanuel Hategeka, Chief Operating Officer at Rwanda Development Board said the partnership is by far one of the most significant in the Agricultural sector, and it is expected to bring tangible benefits in accessing export markets.
The Gashora Joint Venture is also seen to enhance private and public sector partnerships across the agricultural sector.
The horticulture sector has been identified as a high potential value chain for the east African country's economic diversification, revenue generation and job creation.
