The project is driven by VWMSR on behalf of Volkswagen Group Africa and was initiated by Volkswagen Group Innovation in Germany.
The Gen Farm project addresses the potential of renewable energy and a sustainable mechanization of agriculture, to shape mobility in Africa, thereby advancing Rwanda's vision 2050 to transform the economy into a high-income nation.
This pilot e-hub will be managed by ARC Power for two years to ensure its feasibility and success, serving as a model for future expansion across the continent.
The hub will supply clean and reliable energy for essential services like electric tractors (e-tractors) and e-scooters, contributing to mechanized farming and sustainable mobility.
ARC Power provides affordable, reliable, and clean solar electricity to communities across Sub Saharan Africa. The company designs, pre-finances, and constructs both grid-tied and off-grid energy systems, delivering first-time energy access at scale.
ARC Power has received recognition for its innovative work, including the Queen's Award for sustainable development in 2022 and the Energy Globe Award in 2023.
The hub will also provide a flexible business and training space for entrepreneurs, empowering local startups to thrive within the clean energy ecosystem.
Rwanda's agricultural sector is at a crucial juncture, with only 5% of the country's 1.4 million hectares of arable land currently mechanized. The Gen Farm project directly aligns with the National Agriculture Policy, which emphasizes the need for mechanization to increase productivity and reduce labor-intensive practices.
By providing renewable energy to power farming technologies, the hub will support the country's ambitions for market-oriented, climate-resilient agriculture.
'This partnership marks a new chapter for the potential of sustainable energy and agricultural innovation in Africa,' said Karl Boyce, CEO of ARC Power.
'With our solar energy and the ongoing management of the hub, we are confident this project will not only increase agricultural productivity in this area, but also prove the viability of a sustainable model to inspire further investment in the region,' she added.
The hub is designed to foster local economic self-sufficiency by addressing specific needs within the community. In particular, the initiative will reduce the workload of women, allowing them more time for other productive activities.
Additionally, the e-hub will serve as a center for the operation and maintenance of mechanized farming equipment, linking farmers to essential tools and support.
'Our vision is to use this empowerment hub as a pilot that will demonstrate the positive impacts of renewable energy and mechanization in Africa's rural communities,' said Serge Kamuhinda, Managing Director of VWMSR.
'This hub is not only about providing energy; it's about creating a sustainable, scalable business model for agriculture mechanization in Africa,' he said.
A blueprint for future development by serving as a platform for innovation, the hub is expected to lead to significant positive impacts on agriculture and local entrepreneurship, helping Rwanda achieve its long-term agricultural and economic goals.
VWMSR's Gen farm project is a key part of this initiative, and the insights gained from this pilot will help shape the company's future in emerging markets. The wider ambition is to shape mobility in Africa for generations to come.
VWMSR serves as innovation hub for the Volkswagen Group Africa and the empowerment hub project represents Volkswagen's first step into rural mobility in Africa.
Sam K Nkurunziza
