Inyange Industries set to build Rwanda's first powdered milk factory

Inyange Industries, a leading player in Rwanda's dairy industry, is on the verge of constructing the country's first powdered milk factory. The move is poised to not only boost profits for the livestock sub-sector but also revolutionize the local dairy market. The Chief Operating Officer at Christophe Ventures Limited, Elias Baingana, shed light on the company's strategic investment during a recent interview with CNBC Africa. Baingana revealed that the decision to establish the powdered milk factory was not impulsive but the result of meticulous planning and analysis. The initiative has been in the works for quite some time, with extensive studies and assessments conducted to gauge the viability of the undertaking. He highlighted the current conducive environment for such an investment, citing the substantial supply of milk in the market, enhanced farming techniques adopted by local farmers, and the remarkable improvement in milk quality. While some may question the timing of the investment, particularly amidst the COVID-19 pandemic, Baingana expressed confidence in the project's long-term prospects. He noted that the factory's construction and subsequent production are expected to span over 18 months, allowing ample time for market conditions to stabilize. Baingana emphasized the resilience of the dairy sector in the face of the pandemic, pointing out that consumer demand for dairy products remains steadfast even during challenging times. He further highlighted the increased demand for milk powder as consumers opt for stockpiling essential food items. Addressing concerns about previous investment interests from major regional players like Brookside, Baingana assured shareholders of Inyange Industries that the company's extensive market research and strategic positioning set it apart. He underscored the growing market for milk powder both domestically and regionally, targeting emerging middle-income populations in countries like Ethiopia, Kenya, and Tanzania. Baingana revealed that the factory aims to capture a significant portion of the domestic market while also tapping into lucrative export opportunities. In terms of investment returns, Baingana outlined promising projections for the powdered milk factory. The project boasts an impressive internal rate of return of approximately 22%, indicating strong profitability potential. With an estimated payback period of eight to ten years, Inyange Industries views the investment as a long-term asset with substantial growth prospects. Overall, the forthcoming powdered milk factory by Inyange Industries signifies a major milestone in Rwanda's dairy sector. The initiative not only promises economic benefits for the company and its stakeholders but also heralds a new era of innovation and progress in the country's livestock sub-sector.