Scottish oil tycoon gives Rwandan tea factory to 5,000 local farmers
Scots oil industry tycoon Sir Ian Wood has handed over ownership of the largest tea factory in Rwanda to 5,000 local smallholder farmers.
Sir Ian, whose wealth is valued around £1.8bn, was in Rwanda to sign over the Mulindi factory to those who cultivated the tea, in a move that will further increase direct profits for growers.
The Wood Foundation, the charity set up by the North East family, acquired the tea factory in 2012 with Lord Sainsbury's Gatsby Charitable Foundation after the plant was privatised by the Rwandan Government.
Since the purchase, when 45 per cent of shares were given to smallholders, around £11m ($15m) has been invested in factory improvements and agricultural training with the foundation assisting in building markets and corporate governance.
With Sir Ian now satisfied the factory is a well run-business, the 55 per cent stake held by the philanthropists has been handed over to the farmers so they can run it themselves.
Sir Ian, who attended the handover ceremony at the tea factory with Prime Minister of Rwanda, Édouard Ngirente, said: “It’s been a matter of great pride and satisfaction for Lord Sainsbury and I to work with the tea farmers at Mulindi.
"It was difficult to begin with but with the investments and significant training programmes the farmers performance and their income have greatly improved. We are very pleased to be handing over a well-established successful company and will continue to provide some support for an interim period.”
Tea is an increasingly important crop in Rwanda, raising around £70m ($93m) of national revenue in 2019/2020 and directly employing around 60,000 people. Smallholders dominate the supply of the crop.
Sir Ian frequently visited Mulindi, with the tycoon treated to a “rock star’s welcome”.
He is best known for his work with the Wood Group, an oil services company in Aberdenn which he transformed to one that operated in 50 countries, employing some 35,000 people.