Rwanda Targets $1.5 Billion in Agricultural Export Revenues by 2029, Says Minister Bagabe
Kigali, The Gulf Observer: Rwanda is positioning agriculture as a business and scaling up production to drive export growth, with a goal of nearly doubling annual agricultural export revenues by 2029, according to Mark Cyubahiro Bagabe, Minister of Agriculture and Animal Resources.
Speaking at a high-level meeting in Kigali aimed at strengthening Rwanda’s agricultural export sector, Bagabe said the government’s Fifth Strategic Plan for Agriculture Transformation (PSTA 5) targets an increase in export revenues from $839.2 million in 2023/2024 to more than $1.5 billion by 2028/2029 — a 78.7 percent increase.
The plan will require investments of Rwf144 billion, equivalent to 2.3 percent of the total PSTA 5 implementation cost.
Addressing structural challenges
Despite its potential for economic transformation, rural development, and poverty reduction, Rwanda’s agriculture sector faces persistent challenges including limited access to finance, inadequate infrastructure, climate risks, and gaps in value addition.
Bagabe outlined interventions to address these issues, particularly in logistics for perishable exports such as fruits and vegetables. Plans include developing cold chain logistics, expanding cargo capacity with large aircraft for RwandAir, and enhancing road networks.
He emphasized that integrating cold chain systems in the upcoming 10,000-hectare Gabiro Agribusiness Phase II irrigation-led project is a government priority.
On regulatory compliance, the Minister stressed the importance of meeting international standards to prevent product rejections, noting that the government is working closely with regulators to strengthen inspections, registration, and quality monitoring.
Boosting productivity and economies of scale
Bagabe said Rwanda is transforming agriculture into a business-oriented sector by focusing on “food basket sites”, covering about 485,000 hectares of aggregated land. These zones will help create economies of scale, improve input use, and ensure better advisory services.
“To us, it’s a game changer. By changing the way we use inputs, and the way we provide advisory in those particular areas, we can ensure productivity,” he said.
Stakeholder perspectives
Private sector representatives emphasized financing and consistency.
- Sakina Usengimana, Managing Director of Afri Foods Ltd, called for tailored financing for smallholder farmers linked to exporters.
- Robert Rukundo, Chairman of the Horticulture Exporters Association of Rwanda, stressed that consistency in productivity, volume, and quality is critical to accessing premium markets.
Export focus areas under PSTA 5
- Chili: Revenues projected to grow from $6 million to $48 million annually by 2029, fueled by rising demand in China and India.
- Coffee: Revenues expected to increase from $78.7 million to $115.5 million annually, a 46.8 percent rise. Key strategies include replacing aging trees and expanding production areas. However, value addition remains limited, with roasted coffee representing less than 1 percent of exports.
- Tea: Revenues projected to rise from $107.7 million to $164.4 million annually, a 52.6 percent increase. Expansion into high-altitude zones and climate-smart practices will be prioritized to address flood risks.
Outlook
Bagabe underlined that aligning agriculture with policy frameworks, financing mechanisms, and risk management tools will be essential for Rwanda to achieve its ambitious targets.
“Our strategy is to treat agriculture as a business, drive economies of scale, and unlock new markets for Rwanda’s produce,” he said.
