Rwanda Closer to Reaching USD1 billion Agricultural Export Target
By Emmanuel Ntirenganya
Workers sort fresh green beans for export in a packhouse at Kigali Special Economic Zone in Masoro
Rwanda is confident it will achieve the target to generate $1 billion (approx. Rwf1.2 trillion) from agricultural exports in the 2023/2024, considering the performance of the previous financial year, the CEO of the National Agricultural Export Development Board (NAEB), Claude Bizimana, told The New Times in a recent interview.
According to a June 2023 statistics report by NAEB), Rwanda’s agricultural export revenues amounted to more than $857 million (approx. Rwf1 trillion) in the fiscal year 2022-2023, against more than $640.9 million in 2021-2022, representing an increase of 33.74 per cent.
Rwanda’s agricultural exports grew rapidly in the past years, doubling from $225 million in 2013-2014 to $516 million in 2017-2018, and were on pace to reach $1 billion by 2024, as per to NAEB’s 2019-2024 strategic plan.
Speaking about the performance in 2022/2023, Bizimana said that in the context of NAEB’s target of achieving $1 billion from agricultural exports in FY 2023/24, the attained performance means that the sector is contributing significantly to the set national targets, and trade balance, and gross domestic product (GDP).
The $1 billion agricultural export revenue ‘within reach’
Despite the unpredicted circumstances that might be beyond control or anticipated scenario, and price volatility, among others “we remain positive to reach $1 bn agricultural export revenues by FY 2023/24, even beyond following, several ongoing initiatives including but not limited to continuing exploring new markets and engaging more buyers, ongoing trade protocols signing, and other trade engagements (like AfCFTA), and new routing opportunities for RwandAir, and sea maritime approach to uplift more volume of fresh (horticultural ) produces in particular, etc”.
On the strategies or factors that could enable the country to realise the revenue target, Bizimana cited exploring and developing new markets while strengthening existing ones through trade exhibitions, agreements, and partnerships.
They also include investing in training for farmers for good agricultural practices and adopting modern techniques, and third-party certifications support, which is anticipated to enhance productivity and overall output for export.
Others are continuing activities of supporting stakeholders with transportation, storage facilities, and cold chain logistics anticipated to help preserve the quality of perishable goods and reduce post-harvest losses, ensuring that products reach markets in good condition.
Again, initiating more contacts and exploring the e-market share like Carrefour (a firm that operates hypermarkets and supermarkets in some parts of the Middle East, Asia, and Africa), adhering to international quality standards and certifications to gain access to global markets, as well as diversification and value addition, are among strategies towards reaching the target.
What are the key drivers in the 2022/2023 revenue performance?
Coffee exports
In the financial year 2022/2023, Rwanda exported slightly over 20,000 tonnes which brought in almost $116 million. This represents a 53 per cent increase in coffee revenues compared to $75.5 million earned from more than 15,000 tonnes sold at international markets, indicated the abovementioned report.
Bizimana said the positive market response was rooted in the fact that Brazil as the leading supplier of coffee in the export market had fallen short in its supply at the beginning of the same year’s first quarter by 23.
“Increased coffee revenues, was as a result of global and domestic coffee prices which remained high, presenting favourable conditions for Rwanda to maintain its coffee export revenues above set targets,” he said, pointing out that the development set a new record of $5.7 per kilo in 2022/23 when compared to the $4.9 per kilo average price in 2021/22.
According to the report, the increase in coffee export revenues is also attributed to a high volume of coffee sold in 2022-2023, as the recorded quantity implies an increase of 32 per cent (or 4,880 tonnes) compared to the previous year performance.
Horticulture (vegetable, fruit) exports
In 2022-2023, vegetable exports from Rwanda amounted to more than 51,689 tonnes, which fetched over $34.5 million. This revenue was 61 per cent higher than the $21.3 million the country got from over 25,221 tonnes of vegetables that were exported in the previous year, as per the report.
The export of fruits in 2022-2023 totalled 21,953 tonnes and raked in $19 million, representing a 30 per cent increase compared to 14.6 million brought in by the sale of 16,207 tonnes in 2021/2022.
Overall, Bizimana said there was a rise in export revenues from emerging commodities, including cereals, which can be attributed to an increase in informal trade exports responding to increased demand post-Covid-19 pandemic, for mainly cereals and grains, vegetable oils, and oleaginous (including soya, groundnuts, sunflowers). This, he observed, increased their revenues from $226 million in 2021/22 to $314 million in 2022/23.
Tea exports
Tea export sales in 2022-2023 at international markets amounted to 39,000 tonnes and generated $107.7 million, which is more than 35,400 tonnes that fetched over $103.4 million in the previous year.
The increase of 4.12 per cent in tea revenues from July 2022 to June 2023 in comparison with the same period of 2021-2022 is attributed to the high volume of tea sold in 2022-2023 – an increase of 10.18 per cent.
The increased tea production resulted from enhanced productivity in newly established tea plantations, notably evident in Rugabano, a sector in Karongi District, Western Province, and Cyato, a sector in Nyamasheke District, Western Province, recording increases of 67 per cent and 65 per cent, respectively.
In general, as a result of increased tea production, made (processed) tea increased to 169,506 tonnes in 2022/23 from 151,913 tonnes recorded in the previous fiscal year, Bizimana indicated.
Source: www.newtimes.co.rw
About the Rwanda National Agricultural Export Development Board (NAEB)
NAEB is a public commercial institution created in 2011 by merging Rwanda’s coffee, tea, and horticulture development authorities, to combine efforts and resources to increase agricultural exports. The National Agricultural Export Board (NAEB’s) is established as a public commercial institution through Law № 13/2017, under the tutelage of the Ministry of Agriculture and Animal Resources with the Board of Directors undertaking strategic oversight and fiduciary responsibility. The NAEB has the mandate to drive the country’s agri-exports revenues growth through supporting the exports sector actors across production, value addition, marketing and policy interventions. It has played a vital role in expanding Rwanda agricultural exports quality and revenue, contributing to Rwanda’s development.
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