This journey offers meaningful parallels for Rwanda, where tea remains a vital contributor to both rural livelihoods and national export revenues.
Jason Choi, Director of Sunwah Group and President of its GBA and Southwest Region, described the early challenges in Malipo: 'Each household made tea in its own wayâ€"sometimes in a barbarous way. Some would cut down the tea tree entirely, harming both the environment and sustainability.' To change this, Sunwah Group invested in a modern tea processing facility.
Since its October 2023 launch, the Malipo Sunwah Tea Factory has processed over 60 tons of tea leaves, created 28 products, and introduced 11 varieties of "International Friendship Tea." It now collaborates with 15 cooperatives and supports over 8,000 direct and indirect jobs.
The factory's goals are two-fold: improving local livelihoods and building a standardized, globally recognized tea industry. Malipo's tea is now being positioned for both domestic and international markets, including Africa.
Rwanda's own tea journey, though unique in context, shares striking similarities in ambition and reform. Rwanda's tea production has steadily increased from 5,910 tons in 1980 to 40,003 tons by June 2024.
Smallholder farmers contribute about 65 percent of the green leaves used in production, while industrial blocs account for the rest. In 2023/2024 alone, Rwanda earned 114.8 million USD from 38,467.7 tons of tea exports, according to the Rwanda Development Board.
Notably, about 97.3 percent of Rwanda's tea exports remain in raw form. However, the distribution of these exports offers insight into the evolving market dynamics.
Eighty percent of Rwanda's tea exports are sold via auctions, where prices can fluctuate based on demand and quality. 17.3% are sold directly to buyers, enabling a more stable price and fostering long-term relationships with international tea importers.
A modest 2.7 percent is consumed locally, a figure that reflects the nation's commitment to expanding its export markets.
Despite these figures, Rwanda is working to shift the focus toward value-added products and greater market diversification. For instance, initiatives to increase the processing of tea into ready-to-sell products, such as tea bags, are in progress to reduce dependence on raw exports and increase revenue per unit.
The government's drive to plant 40 million new tea seedlings as part of a broader sustainability and industry transformation strategy further underlines Rwanda's vision to build a globally competitive tea industry.
In Malipo, the transformation was accelerated by both private investment and proactive local governance. 'Even at night, government officials would offer helpâ€"talking to villages and farmers the next day,' said Choi. Diana Yinan Dai, Chief Representative of Sunwah Tea in Beijing and Yunnan, highlighted the transition from informal, manual production to a more mechanized, skill-based industry.
'We teach the locals how to make the tea properly, and they get paid… Now tea has become an industry,' she said.
This modernization has had a tangible economic impact. By 2024, Malipo's GDP hit 11.05 billion yuan, with agriculture and related sectors contributing 3.06 billion. The average rural income rose by 7.4 percent to 16,679 yuan. Chaping Mountain's 133-hectare ancient tea garden now stands as a cultural and economic icon.
Rwanda has similarly invested in modernizing agriculture. Digital transformation, rural infrastructure, and strategic investor partnerships are enhancing productivity and export readiness.
Digital payment systems are being rolled out across the sector to improve efficiency and transparency. These changes are expected to yield long-term cost savings and reinvestment opportunities.
Rwanda's tea industry has also gained international recognition. Rwanda Mountain Tea Ltd won first prize for BP1 (Kitabi) at the 2015 Gold Medal Tea Competition hosted by the Tea Associations of the USA and Canada, affirming the country's quality credentials.
Drawing a compelling parallel, the experiences of Rwanda and Malipo underscore the potential for even geographically challenging regions to emerge as significant players in the global agricultural landscape. Both their journeys highlight the transformative power of innovation, strategic partnerships, and the modernization of agricultural value chains.
Mugisha Christian
Source : https://en.igihe.com/news/article/how-rwanda-s-tea-rise-meets-malipo-s-mountain-momentum
