Rubaya-Nyabihu Tea Company Ltd.

RNTC is expanding its tea production volume (+56% over the coming 10 years) through: Through these expansions, BIO’s loan will have significant positive developmental impacts as it should: It is worth to note that in parallel to our loan, RNTC will partly fund (USD 1.6 M) a blending and packaging company through internal cash flows (host legal structure still to be defined). This is in line with RNTC/RMT strategy i.e. moving down the value chain towards the final consumer. Our loan therefore also enables RNTC to participate in this project as our loan releases internal cash flows that would have been consumed for the above-mentioned expansions. RNTC is located in the North-West region of Rwanda, near Goma in DRC and the Lake Kivu. It operates on two different premises in the Rubaya and Nyabihu district. The Rubaya tea factory is about 140km from Kigali and 20km from the Nyabihu factory. Employment effects at investee company: 1. Industrial tea plantation expansion (300ha in Nyabihu) implies significant jobs creation. Tea plantations require 3-4 full-time-equivalent per hectare to maintain and pluck the green leaves. 2. The combined effect of RNTC's expansion and modernisation of its processing capacity will maintain the number of jobs in the processing facilities. 3. Expansion of the processing capacity is also a prerequisite to be able to process the additional green leaves that should be produced by RNTC's out-growers' plantation expansions Indirect employment effects (upstream/downstream): RNTC's out-growers intend to expand their plantation by 350 hectares (150 at Nyabihu and 200 hectares at Rubaya). This implies the creation of additional >1,000jobs. Increase of the value of the country's exports: Tea exports is the 3rd biggest source of tax income for Rwanda. Expanding tea production will directly contribute to an increase in taxes and Rwanda exports (as >90% of the tea is exported). Improved economic opportunities for farmers: According to cooperatives and RNTC, green leaves (input to produce tea) is a very attractive cash crop as production/harvest occurs through out the year and, once planted, does not need significant efforts (revenue/profits per hectares is higher than alternative food crops). RNTC supports outgrowers by providing them with tea bushes from their nursery, payment facilities for fertilizers and technical assistance on how to manage plantations. Employment creation in rural areas Tea plantations are located in rural area which have low level of income (mainly based on subsistence farming) and high unemployment rate. Job creation in these areas has a particularly strong spillover effect on local communities.