Cleaner production and profitability of tea factories in Rwanda

Abstract

Rwanda as one of environmental and resource utilization strategies needed to overcome such constrains. CP is an opportunity generating strategy, seeking improvements in regards to continuous application of an integrated preventative environmental strategy to processes, products and services to increase efficiency and reduce risks to humans and the environment. The CP implementation objectives are supplemented by eco-efficiency objectives.The main objective of this study is to to evaluate the effect of cleaner production on profitability of selected tea factories in Rwanda. The specific objectives were the following: To evaluate the cost difference between the material used before and after cleaner production to determine the impact of cleaner production on the return on asset of the tea factories, to determine relationship between cleaner production on profitability of the tea factories. The study used a descriptive research design that involved collection of both qualitative and quantitative data. The target population for this study was 30 populations in charge of the Cleaner production project. Research instruments like questionnaire and interview used for data collection and SPSS software analysis was used to analyse data from the field. The results related to the objective, the respondents showed that the cleaner production and environment have a relationship, 76.7% strongly agreed, 16.7% agreed while only 6.6% not agreed. In the table 4.12 and 4.13 the majority of the respondents assumed that cleaner production and profitability in those three tea factories are positively related. The findings of the study showed that the different between the investment and cost saving in three tea factories (Kitabi, Mata and Nyabihu) before and after cleaner production project. Starting on Kitabi tea factory, before CP the total investment made in energy, water, wood and technology was 50,015 UDA and cost saved was 99,143 USD while after CP the factory invested 36,180 USD and saved cost equal to 109,620 USD, it means that after the cleaner production project at Kitabi tea factory has saved more after introducing Cleaner production project in the factory. Before CP the company invested more and saved less which means there is a loss while after CP Kitabi invested less money and saved much money, where the factory profited after CP project, which means that the implementation of cleaner production project in those three tee factories (KITABI, MATA and NYABIHU) contributed more, where each factory after the project implementation has reduced the cost of buying water, energy, wood and technology used and saving more money which have allowed the each factory to save more as profit of the factory.