Rwandan Rice Farmers Demand Government Help to Recover $50,000 Unpaid Debt
Kirehe, Rwanda – May 15, 2024
A Rwandan farmers’ cooperative is pleading with the government to help recover over 64 million Rwandan francs (approx. $50,000) owed by a collapsed rice processing company since 2019.
The dispute came to light during a visit by Local Government Minister Dominique Habimana to Cyunuzi marshland in Kirehe District on Friday. Leaders of COOPIRIKI Cyunuzi, a cooperative of rice farmers, revealed that Izimano Industries failed to fully pay for rice delivered during the 2019 farming season.
Farmers Left in the Lurch
“We supplied our rice, but the company only paid partially,” said Evariste Harerimana, president of COOPIRIKI Cyunuzi. “They left a debt of more than Rwf64 million, and despite winning a court case, we never saw the money.”
The cooperative took legal action against Izimano Industries and won, but the company’s financial troubles ran deep. When its assets were auctioned to settle debts with banks, tax authorities, and other suppliers, the farmers were left empty-handed.
“This was a major loss for our members,” Harerimana added.
Minister Pledges Action
Minister Habimana assured the farmers that the government would explore ways to recover the funds.
“Any possible process to retrieve that money should begin,” he said. “Farmers should not lose the investments they worked so hard for.”
From Humble Beginnings to Major Growth
Despite the financial setback, COOPIRIKI Cyunuzi has grown significantly since its founding in 2006. Starting with just 12 hectares of undeveloped marshland, the cooperative now cultivates 490 hectares and plans to expand by another 100 hectares.
With 3,458 members, the group produces an average of 6.4 tonnes of rice per hectare and has diversified its income through investments, including shares in the Kirehe Rice Factory, which earned them a Rwf40 million dividend.
They have also funded community projects, such as the construction of the Nyakarambi modern market, to boost local commerce.
Ongoing Challenges: Erosion and Infrastructure
However, farmers say soil erosion and poor infrastructure threaten their progress.
“Over 40 hectares were damaged by erosion last season,” Harerimana explained. “Steep hillsides worsen the problem, and water runoff from the Kayonza-Rusumo road floods our fields, destroying crops.”
Additionally, the cooperative struggles with electricity shortages, limiting their ability to use newly purchased rice-drying machines. Nearly 18% of their harvest is lost when drying in open spaces during heavy rains.
Government Encourages Higher Productivity
Minister Habimana praised the cooperative’s success but urged farmers to increase yields to at least seven tonnes per hectare.
“We want a developed citizen—one who seizes opportunities, works hard, and achieves progress,” he said.
As the farmers await action on their unpaid dues, their resilience continues to drive Rwanda’s agricultural sector forward.
— Reported by Nexio News
