From avocado to chilli, to poultry, Rwanda has highlighted major agricultural and livestock opportunities that need over $1.68 billion in investment, with greater potential measured by market opportunities including export, and importance in improving food and nutrition security, according to officials.
This is under the "Rwanda Legacy Program" which the country launched at the 2024 Africa Food Systems Forum (AFS Forum 2024) and concluded on September 6, in Kigali.
The Legacy Program on Food Systems aims to provide the country with a more operational and bankable investment. It aims to transform agriculture, create jobs for youth and women, and boost food security in Rwanda, according to information from the Ministry of Agriculture and Animal Resources (MINAGRI).
"We want to be more resilient in terms of household consumption and food security," said Ildephonse Musafiri, the Minister of Agriculture and Animal Resources, pointing out that agriculture is the second largest contributor to Rwanda's economy - with 27 per cent share of its GDP in 2023.
FAO Assistant Director-General and Regional Representative for Africa Abebe Haile-Gabriel said, "Rwanda has demonstrated translation of political pronouncements such as declarations into practice," pointing out that Rwanda's achievements in agriculture are not something isolated.
"And it is only Rwanda that has received the Award for Best Achievers of the Malabo Target [under Comprehensive Africa Agriculture Development Programme (CAADP)] four times in a row," he observed.
"This is a perfect experiment laboratory for the rest of Africa, and I don't think we should just leave it like that," he said.
The programme has four components. Component one agriculture (avocado, chilli, and potato) where public and private partnership (PPP) and other successful business models to engage young people in agri-food value chains, technologies, successful business models, digital innovations (agritech and fintech) apply.
Component two is about livestock (poultry, and beef). It consists of a public and private partnership (PPP) approach, aimed at transforming the poultry and beef sector and improving diet quality and nutrition.
Component three focuses on innovative finance, consisting of risk sharing facility (RSF) and agri-food SME catalytic financing mechanism linked to components one and two; while component four is about governance and management that focuses on cross-sector coordination to ensure smooth and efficient implementation of the programme.
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Avocado case
Rwanda exported 2,230 tonnes of avocados which generated 4.7 million in revenues in 2022, according to figures from MINAGRI.
Rwanda targets to increase avocado exports by an average annual growth of 155 per cent within, from 2,000 in 2024 to 31,164 tonnes in 2028/29.
For avocados, an investment outlay of $143.5 million is needed.
This includes $99 million for increasing the domestic production area from 517 ha to 4,933 ha, which is required for the production of 71,116 tonnes.
There is also $12.5 million required to increase processing capacity for 50 per cent of produce, with 35,558 tonnes expected to be processed under the programme.
The country also targets to increase national exports to meet regional demand from international buyers, with 12,938 tonnes expected to be exported. An investment of $32 million is projected to this end.
Avocado is expected to become the most traded tropical fruit by 2030, reaching 3.9 million tonnes of exports, overtaking both pineapples and mangoes in quantity terms, as per the UN's Food and Agriculture Organization (FAO), which indicates that the trend is in response to rapidly growing global demand for the commodity.
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USA and EU (due to assumed health benefits) will remain the main importers by 2030 with 40 per cent and 31 per cent of global imports respectively.
Chilli investment outlay - $470 million
In 2023, Rwanda exported a total of 3,403 tonnes of chilli in fresh, dry, and processed forms, generating $4.2 million in revenue, according to data from MINAGRI. Looking ahead, the country aims to increase its chilli exports by 500% over the next six years, targeting an annual volume of 38,762 tonnes. To achieve this ambitious goal, Rwanda plans to invest USD 470 million in production, processing, and export infrastructure. This expansion will involve increasing the production area from 533 hectares to 4,457 hectares, with each hectare costing approximately $53,292. Additionally, Minister Musafiri noted that Rwanda has established markets for chillies and avocados in China, Europe, and the Middle East, and is also planning to begin exporting avocados to India.
