Deal #1713

Location #1

Spatial accuracy level
Administrative region
Location
Nyabarongo, Rwanda

Target country
Rwanda
Comment on location
Nyacyonga and Nyabarongo marshes

Land area

Intended size (in ha)
5100
Size under contract (leased or purchased area, in ha)
[1997] 3100
[2012] 5100
Size in operation (production, in ha)
[2012] 1700
Comment on land area
Of the original 3100ha, Madhvani cultivated 1,700 hectares with the remaining 1400 hectares under permanent flood (Wetland area). In 2012 the Rwanda government granted an additional 2000ha to the company. Additional 2,200ha cultivated by outgrowers. Targeting to increase upland area for cane production.

Intention of investment

Intention of the investment
Biofuels, Food crops, Renewable Energy

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[1997] Concluded (Contract signed)

Implementation status

Implementation status
[1997] In operation (production)
Comment on implementation status
Previously state-owned

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
2200

Contract #1

Duration of the agreement (in years)
50

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned number of jobs (domestic)
570

Operating company

Name of investment project
Kabuye Sugar Works

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Date
2011-01-01
Comment on data source
"Socio-economic Impact of Commercial Exploitation of Rwandan Marshes. A Case Study of Sugar Cane Production in Rural Kigali" by ILC, RCN, Marco Lankhorst

Data source #2

Data source type
Company sources
File

Data source #3

Data source type
Media report
File
Comment on data source
The East African- Rwanda grants Madhvani Group more land for sugarcane

Data source #4

Data source type
Research Paper / Policy Report
File
Comment on data source
Social and Environmental Impacts of Agricultural Large-Scale Land Acquisitions in Africa—With a Focus on West and Central Africa-M Richards

Displacement of people

Comment on displacement of people
There was resistance

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
No compensation

Former land owner (not by constitution)

Former land owner
State

Former land use

Former land use
Commercial (large-scale) agriculture
Smallholder agriculture

Former land cover

Former land cover
Cropland

Detailed crop, animal and mineral information

Crops area
Sugar Cane

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Groundwater
Comment on source of water extraction
Marshland at risk from water extraction

Overall comment

Overall comment
The authors were not able to see a copy of the agreement, but were informed that the price paid by Madhvani for KSW was around USD 1 million. The Group rehabilitated and renovated the factory within about six months. The Dutch government has provided EUR 8mio to drain the floodwater to reclaim the new land. Madhvani is expected to carry 30-40% of the cost

May 14, 2018, 9:41 p.m.

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March 14, 2016, 5:33 p.m.

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Feb. 26, 2014, 11:59 a.m.

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May 13, 2013, 9:18 p.m.

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March 20, 2013, 12:43 p.m.

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Feb. 15, 2013, 5:02 p.m.

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