Karongi Tea Factory - Financing to increase tea production in the area of Karongi
Karongi Tea Factory
Financing to increase tea production in the area of Karongi
Fair tradeTrade in products that have been certified and carry a fair trade label. An example of this is a farmer’s cooperative that collectively sells its cocoa to a fair trade organization.
Karongi Tea Factory (KTF) was founded in 2009. This family company processes tea leaves produced on its own tea plantations and supplied by small local tea producers who are members of the KATECOGRO cooperative.
Rwanda started producing tea in the mid1950s, but production remained limited until the 1970s, when tea became a priority sector. Since then, the industry has come of age and there are currently 14 tea factories, mostly located in Western Rwanda. Around 75% of the tea plantations are owned by small farmers' cooperatives.
KTF is Oikocredit's first Rwandan tea partner and, as such, represents an important diversification of its portfolio into this sector, which has a lot of potential and a high social impact.
The company has a favourable impact on the area of Karongi as it provides various types of jobs to over 2,000 people. The factory has significantly contributed to the electrification of the area and improved infrastructure. As part of its corporate responsibility the company offers medical insurance and trains tea famers.
Karongi Tea Factory has been an Oikocredit partner since 2016.Download this project as a PDF