Cooperatives of farmers growing cassava will be soon allowed to acquire 40% of shares of Kinazi cassava processing plant, the factory management has revealed.
According to Robert Runazi, the Managing Director of the plant, evaluation activities are being undertaken in order to be able to determine the value of the plant before unveiling shares to be offered to farmer cooperatives.
“Evaluation activities are underway and we hope to be done by December 18, 2013,” disclosed Runazi, adding that the value of the plant will also include the plant expansion which is on track.
The Ruhango-based ultra-modern facility, which has been producing high quality flour since mid April 2012, also plans to expand its activities by producing starch. The production of the starch is expected on the market by the end of the first quarter of 2014. The starch can be used in making medicine, clothes, bread and granite among others.
Once the evaluation of the plant value gets completed, the managing director of the plant explained, the factory management will meet farmer cooperatives that grow cassava in order to inform them about the outcomes and then interest them in the new offer.
Runazi made it clear that no individual farmers will be allowed to purchase shares, emphasizing that only cooperatives that grow cassava will be allowed.
“This will also be an occasion to remind disorganized cooperatives that they should improve their cooperative management so that they can be able to advantage of the offer,” pointed out Runazi.
According to Runazi, the deal will make cassava growers increase their income and ownership of the plant. The plant was conceived by the government in order to encourage the growing of cassava in the country and improve the livelihoods of cassava growers.
Inaugurated in April last year, the seven-billion Rwf facility,  located in Kinazi sector, Ruhango District, is a success story that has helped local cassava farmers improve yields and in turn increase their revenue.
The plant has been contributing a lot in transforming lives of cassava farmers from Ruhango, Muhanga, Gisagara, Kamonyi, Nyanza and Bugesera districts – a region famed for cassava production. The plant, which is installed with capacity to process 120 tons of cassava per day, is now exploiting between 60% and 70% of its full production capacity.