Buyers working on the Gabiro Agribusiness Hub have requested the federal government to scale back irrigation water tariffs, saying excessive water prices are growing manufacturing bills and affecting the competitiveness of their companies.
The issues have been raised on Saturday, July 11, throughout a go to by Prime Minister Justin Nsengiyumva to the hub in Nyagatare District. The Prime Minister urged traders to scale up agricultural manufacturing, equip younger folks with trendy farming expertise, and maximise the usage of obtainable land.
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Emmanuel Harerimana, Managing Director of Backyard Recent, mentioned irrigation is essential to the corporate’s operations however the present tariffs have turn into a big monetary burden.
Backyard Recent operates on 185 hectares, producing export horticultural crops comparable to chilli and wonderful beans utilizing drip irrigation and fertigation applied sciences to enhance water and fertiliser effectivity.
“We now pay Rwf277 per cubic metre of water. If you irrigate practically 200 hectares daily, the associated fee turns into huge. We’re participating related establishments to see how these fees could be decreased,” Harerimana mentioned.
He mentioned the corporate has invested in environment friendly irrigation programs and plans to develop manufacturing utilizing present infrastructure, however decrease water prices would make such investments extra sustainable.
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Augustin Twagiramungu, Managing Director of Agropark Gabiro Ltd, mentioned irrigation prices have a significant affect on maize manufacturing bills.
“We pay about $0.19 per cubic metre. If you calculate the quantity of water wanted for one hectare of maize, irrigation prices attain round Rwf1.8 million,” he mentioned.
Twagiramungu added that charging water tariffs in US {dollars} will increase the burden on traders as a result of prices rise each time the Rwandan franc depreciates, whereas most agricultural merchandise are bought regionally in francs.
“As change charges change, our manufacturing prices proceed to extend. Lowering water tariffs would assist traders handle manufacturing prices extra successfully,” he mentioned.
He instructed that traders might contribute to the upkeep of irrigation canals and associated infrastructure if this could enable water fees to be decreased.
Different traders raised related issues. Sage Umutoniwabo, Chief Working Officer of Kinvest Ltd, mentioned excessive irrigation prices proceed to have an effect on the profitability of agricultural manufacturing.
Saleem Esmail, proprietor of Western Seed Firm Ltd, mentioned decrease water tariffs would help efforts to develop maize seed manufacturing in Rwanda.
“The price of water stays excessive and is likely one of the points that must be addressed,” he mentioned.
Responding to the issues, Agriculture and Animal Assets Minister Telesphore Ndabamenye mentioned the federal government is reviewing the problems raised by traders.
“They indicated that water prices stay excessive. We’re assessing their manufacturing prices alongside revenues to find out whether or not there are challenges that may be addressed. Discussions are ongoing, and authorities help will proceed,” he mentioned.
Ndabamenye mentioned the 5,600-hectare Gabiro Agribusiness Hub was developed with government-supported irrigation infrastructure that pulls water from the Akagera River to allow year-round farming.
He added that the federal government plans to develop irrigation infrastructure and improve manufacturing on the hub by 50 per cent.
The hub, positioned within the Rwimiyaga and Karangazi sectors of Nyagatare District, was established by consolidating massive tracts of land and equipping them with trendy infrastructure earlier than allocating them to personal traders for industrial farming.
Greater than Rwf100 billion has been invested within the venture.
Underneath the primary part, about 5,600 hectares have been developed, with greater than 4,000 hectares allotted to traders. The farms produce crops together with maize, fruit and veggies whereas creating jobs for greater than 6,000 native residents.
