The Wood Foundation Africa applies its tea expertise to significantly improve the livelihoods of the smallholder farmers by supporting them to achieve increased quantity and quality, as well as an improved made tea price.
This is achieved through a variety of philanthropic investments, including smallholder privatisations, joint ownership of majority smallholder supplied tea companies, as well as professional management and corporate governance support. Additional targeted assistance through new tea expansion, quality premiums, and plucker incentives are applied to maximise the link between increased yields, quality, and smallholder returns.
Tea Brownfields in Numbers
30,400
Smallholder farmers empowered by the Brownfield investments
35%
Rwanda’s national tea production
Mulindi & Shagasha, Rwanda
The Wood Foundation Africa and the Gatsby Foundation, through their joint company East African Tea Investments (EATI), partnered with smallholder farmers to acquire the Mulindi and Shagasha tea factories in 2012 when they were privatised by the Government of Rwanda.
The factories are 100% smallholder supplied and account for 20% of Rwanda’s made tea production.
Through a combination of finance, professional management, and governance support, the aim is to transform the factories into profitable businesses for the 13,000 smallholder farmer shareholders.
The Wood Foundation exited its investment in Mulindi in 2022, once the principal investment was repaid at nil-return, and agreed indicators on governance were met. It is the first smallholder-owned factory in Rwanda.
Gisovu, Pfunda & Rugabano, Rwanda
The Wood Foundation Africa and Luxmi Tea Company, through the Silverback Tea Company, acquired the majority stake in three factories in 2019.
Gisovu is the premiere black CTC tea factory in Africa, and has received numerous awards for its bright, golden, and brisk cup. Pfunda offers a tea which is bright and coloury with body and briskness, while Rugabano is the newest tea factory in Rwanda already scoring among the top factories in Africa.
The teas from all three gardens are grown in volcanic soils at elevations ranging between 1,900m and 2,500m above sea level. Greenleaf is majority supplied by 17,400 smallholder farmers who receive agronomic support and an additional premium for high quality green leaf supplied. As a result of this, the factories are able to produce some of the most sought-after CTC teas in the world.
Nshili Kivu Tea Factory, Rwanda
The Wood Foundation Africa and Rwanda Mountain Tea, through Ubumwe Tea Holding Limited, acquired a majority stake in Nshili Kivu Tea Factory in 2023.
Nshili Kivu is located in Nyaruguru District of Rwanda and started operations in 2008, producing high quality black CTC tea. Volumes have grown steadily reaching 1,856 tons of made tea in 2022. Nshili Kivu is supplied by a 700 hectares core estate and 690 hectares of smallholder production comprising 2,560 farmers. These farmers are organized through their cooperative (Cooperative Theiculture de Nshili Kivu).and have a 15% stake in the factory company.
The philanthropic objectives of this investment include development of an additional 1,250 hectares of tea thus bringing an additional 2,500 smallholders into the tea business through inputs, patient finance, and agronomic advice while providing production logistics and market access once tea reaches commercial bearing. The investment also targets expansion in factory capacity, as well as improving quality of tea produced and the overall productivity of existing farmers. Through this additional investment and support, Nshili Kivu will emerge as a premium tea factory in Rwanda that is also majority smallholder supplied.
This direct investment demonstrates TWFA’s confidence and commitment to Rwanda’s tea sector and is based on more than a decade of experience and expertise in the country’s tea sector, as well as the potential for the sector to further drive sustainable development particularly for the rural majority.
Tea Brownfields in Numbers
35%
Rwanda’s national tea production
30,400
Smallholder farmers to be empowered