Minister Dr. Telesphore Ndabamenye Reassures Investors in the Gabiro Agribusiness Hub Project
Minister of Agriculture and Animal Resources, Dr. Telesphore Ndabamenye, has reassured investors operating within the Gabiro Agribusiness Hub that the Government of Rwanda is committed to resolving the challenges affecting their investments through sustainable and investor-friendly solutions.
The Gabiro Agribusiness Hub is a flagship large-scale agricultural development initiative located in Nyagatare District, established to promote commercial farming through modern irrigation infrastructure. Under the project’s first phase, 5,600 hectares have already been developed, with more than 4,000 hectares allocated to private investors for agricultural production.
The investors recently presented their concerns to Prime Minister Dr. Justin Nsengiyumva during his inspection visit to the irrigation scheme in the Rwimiyaga and Karangazi sectors on 11 July 2026. Among the key issues raised was the high cost of irrigation water, with investors currently paying RWF 277 per cubic metre. They argued that the substantial volume of water required to achieve optimum crop yields significantly increases production costs, making the venture less profitable.
Another major concern highlighted by the investors was the project’s financial structure, under which irrigation fees are paid in United States dollars (USD) while agricultural produce is sold in Rwandan francs (RWF). They warned that the continued appreciation of the US dollar exposes them to exchange-rate volatility, placing additional financial pressure on their businesses.
Responding to these concerns, Dr. Ndabamenye said the Prime Minister’s visit underscored the government’s determination to maintain close collaboration with investors engaged in strategically developed agricultural zones. He emphasized that the concerns raised would be addressed through continued dialogue and evidence-based policy interventions aimed at ensuring the long-term sustainability of the project.
The minister explained that the government intends to review the irrigation water tariff and align it more closely with investors’ productivity and profitability. He noted that increasing yields per hectare would improve investors’ returns and create room for a more balanced pricing framework.
“Investors have indicated that water costs continue to rise, but we have agreed to continue consultations so that irrigation tariffs are aligned with the returns they generate. We will also work together to improve productivity per hectare because higher yields ultimately translate into greater profitability. Discussions will continue to identify a commercially viable pricing structure that benefits investors while safeguarding the sustainability of the irrigation scheme,” Dr. Ndabamenye said.
The Gabiro Agribusiness Hub has attracted investments exceeding RWF 100 billion and has already created employment opportunities for more than 6,000 people, particularly in the production of maize, fruits, and vegetables.
As part of the project’s expansion strategy, more than 10,000 additional hectares will be developed during the second phase and allocated to new investors, a move expected to substantially increase Rwanda’s commercial agricultural output, strengthen food security, and enhance the country’s agricultural export competitiveness.
