The strategic Milk Powder Deal, which was unveiled this June 27, 2025 is aimed at advancing Rwanda’s self-reliance and industrial capacity but also increase farmer’s incomes and improved nutrition.
AIF Country Manager, Abraham Mathai said they have been importing around 3,000 tons per year and paying other farmers but that money they have been spending will now remain in Rwanda.

“That money will go to increase the incomes and livelihoods of farmers. For us that is a very important step for us. Just as we did for maize and soya, now we are looking at getting all our products from within the country,” Mathai said.

AIF, which produces fortified food for Rwandans and for export, initiated the partnership with a first purchase of 50 tons of high-quality milk powder from Inyange, and aiming to scale up to 3,000 metric tons annually, marking its first local sourcing of this essential ingredient.

“This is not a routine transaction. It reflects a fundamental shift in how two of Rwanda’s leading manufacturers are leveraging local capacity to reduce import dependency and deepen integration across national value chains,” Mathai said.

By choosing to source locally, AIF reduces exposure to global supply chain disruptions, shortens procurement cycles, saves forex and increases its contribution to Rwanda’s GDP.

The deal comes after 11 months of Inyange industries unveiling a Milk Powder Plant (MPP), and worked hard to make its processes meet internationally recognized quality and safety standards, including the FS22000 certification.

Since its commissioning just 11 months ago, the MPP has made significant inroads into regional and international markets, with exports now reaching Kenya, Tanzania, Turkey, Syria, Oman, and Ghana.

This growing footprint affirms Inyange’s ability to compete on quality and consistency well beyond Rwanda’s borders.

James Kagaba is the Managing Director of the Inyange Milk Powder Plant said that they will continue to invest in systems and products that meet real needs and building for reliability, and impact as they remain open to more partnerships.
“Currently we are exporting to Kenya, Tanzania, Turkey, Syria, Oman, and Ghana. These are not test shipments. They are proof that what we produce here can meet the demands of regulated markets abroad,” he said.

Kagaba noted that this deal creates and sustains market for dairy farmers in Rwanda and also creates an opportunity for Rwanda to reduce the volume of imported milk powder which comes with other benefits like strengthening the local currency and expanding Rwanda’s footprint within regional and international markets.

For AIF, a company that operates under some of the highest global production and nutritional standards, this local sourcing decision is a signal of confidence in the quality and consistency of Rwandan manufacturing.

It also aligns with a broader effort to substitute imported inputs with locally produced alternatives where quality allows. Critically, the establishment of the MPP has had an immediate impact on Rwanda’s dairy ecosystem.

Prior to its launch, farmers regularly faced losses due to oversupply and limited local processing capacity. Today, milk wastage is no longer a recurring issue.
The MPP has created sustained industrial demand, stabilizing offtake and securing a consistent market for dairy farmers across the country.

Beyond the immediate supply deal, this partnership reflects the maturity of Rwanda’s industrial ecosystem and offers a model for productive, scalable collaboration between domestic manufacturers.

Inyange, in turn, unlocks new industrial demand for its powder milk production, positioning itself to scale further into export markets.

Farmers like, Elias Gakire, the chairman of Nyagatare dairy farmers said that the implications are clear and that this partnership strengthens Rwanda’s manufacturing base, empowers local agribusiness, and reinforces the country’s standing as a reliable source of high standard food products.