R
wanda's annual agriculture sector
growth rate increased to 7 percent in
2017 from 4 percent the previous year.
Its contribution to GDP increased to 31 percent
in 2017 from 28 percent in 2010.
The crop intensifi cation programme was
introduced in 2007 as a pilot program with
the main goals of increasing agricultural
productivity in high-potential food crops,
safeguarding food security and self-suffi ciency.
Rwanda has also championed a new model
of increasing food production known as
developing various “food baskets”. The notion
concentrates on activities and investments
in explicit locations that have comparative
advantages in particular commodity chains. The
new food baskets regions are intended to boost
production, develop new industries and create
much-needed off-farm employment. They
bring advantages over alternative approaches
through the encouragement of specialisation,
ensuring proximity between producers and
processors, and leverage of private investment
in pre-packaged opportunities.
Rwanda’s position in the region yields
it a set of exceptional natural advantages
for investors seeking opportunities in the
agri-business sector. The timing is just right
for sector investors as an amalgamation of
favourable factors developed over time which
can work to the advantage of those wishing
to participate in what Rwanda’s agribusiness
offers.
Rwanda’s abundant rainfall, temperate
climate, and rich volcanic soils offer perfect
conditions for investment in agriculture.
The government of Rwanda at all levels is
dedicated to facilitating private investment in
the economy, and factor costs are competitive,
with the rural law, low-land lease rates, ample
water resources for irrigation, and improving
transport and power costs.
Investors should embrace the newly
developed Agricultural Land Lease Client
Charter along with standard Contract &
Corporate Farming Models – streamlining the
process of leasing land for agricultural use.
Dairy Production & Processing
Invest in dairy production and processing
Rwanda is well
placed to serve
growing global,
regional and
local demand for
fruit, fl owers,
and vegetables.
There also
happens to be
high government
ambition in the
horticulture
sector.
and take advantage of Rwanda's conditions
and serve a growing and under-served middle-
class in the EAC. In the past 10 years, the total
production has increased (189,827 MT in 2007
to 706,030 MT in 2014) and the demand for
dairy products consumption has outstripped
the local production.
Demand for milk currently exceeds supply.
The potential estimated demand (Kigali Market)
for pasteurized milk products is 680,000 L/day,
with sales estimates of 83,000 L/day.
Rwanda produces 2,100,000 liters of milk
daily (and increasing), 15 percent of which fi nds
its way into the formal market.
Demand in urban and suburban markets
for good quality fresh milk is unsatisfi ed with
vendors normally running out of supply by the
middle of a business day and vendors earn over
100 percent return annually.
Horticulture production for export
There is a big opportunity to invest in
horticulture production by taking advantage of
Rwanda's excellent growing conditions to serve
unmet growing year round demand in the EU
and Middle East market.
While demand in the main importing
regions (EU, North America) remains flat,
domestic production is declining. This together
with changing consumer preferences favours
imports from equatorial regions.
Rwanda is well placed to serve growing
global, regional and local demand for fruit,
fl owers, and vegetables. There also happens to
be high government ambition in the horticulture
sector. The Government targets to increase
exports from $6mn today to $140mn by 2020.
Investment opportunities in the animal
feed sector
Investing in the production of Animal
Feed in Rwanda is an advantage because of
the country's increasing demand for the same.
Livestock development sub-sector in Rwanda
contributes about 10 percent to the GDP and
about 3 percent of the agricultural GDP, with
about 65 percent of families raising some type
of livestock.
Countrywide, the livestock population
has been signifi cantly increasing from 2005
2018 • RWANDA • 23