Rwanda: Govt Repeals Coffee Zoning Policy

16 June 2023
The New Times (Kigali)
By Michel Nkurunziza

The Ministry of Agriculture and Animal Resources on Thursday, June 15 issued new instructions repealing Rwanda's coffee zoning policy, which was first implemented in 2016. The policy required coffee farmers within specific geographic zones to sell their crops exclusively to designated coffee washing stations, while prohibiting sales or purchases outside of these zones.

While the recent announcement did not provide specific details about the reasons for the repeal, it revealed that, "Purchasing and trading coffee cherries is permitted throughout the country without restriction."

The decision to repeal the coffee zoning policy aligns with the government's strategic plan to enhance coffee quality, increase production volume, and foster collaboration between coffee farmers and exporters. The Ministry's announcement, signed by Minister Ildephonse Musafiri, emphasized the aim of promoting the growth of export crops as outlined in the 4th strategic plan for agriculture transformation.

The National Agricultural Export Development Board (NAEB) will continue to establish and publish the minimum price for coffee cherries each season.

However, the ministry specified that only fully-washed coffee will be processed in Rwanda, while other types of coffee will require authorization from NAEB to undergo processing.

Exporters of specialty coffee, scoring 80 or above on the cupping scale, will be exempt from paying a fee of 5 percent of the coffee's value. Exporters dealing with other grades of fully-washed coffee will be required to pay the fee. Additionally, licensed semi-washed coffee dealers will have to pay a fee of 5 percent based on the value of the coffee.

NAEB is expected to release comprehensive instructions on the implementation of the new regulations. The Ministry of Agriculture and Animal Resources clarified that all previous ministerial instructions that contradicted the new guidelines have been repealed.

According to the National Agricultural Export Development Board's December 2022 report, revenue from Rwanda's coffee exports rose by 34 percent to over $105 million (approximately Rwf114 billion) in 2022, surpassing the target of generating $95 million annually from coffee exports by 2024.

Read the original article on New Times.

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