Rwanda aims to lift agricultural export earnings to $1.5 billion by 2029

By The Inspirer.

KIGALI — The Government of Rwanda is pushing to transform agriculture into a business-driven, large-scale production sector to nearly double annual agricultural export revenues within five years, Agriculture Minister Mark Cyubahiro Bagabe said on August 14.

Speaking at a meeting in Kigali on strengthening the agricultural export sector, Bagabe said the target is to grow export earnings from $839.2 million in 2023/24 to over $1.5 billion (more than Rwf 2 trillion) by 2028/29 under the Fifth Strategic Plan for Agriculture Transformation (PSTA 5).

Achieving this will require investments of Rwf 144 billion, equivalent to 2.3 percent of the total PSTA 5 budget.

The meeting brought together senior government officials, exporters and financial sector representatives to identify bottlenecks and agree on strategies to unlock the full potential of agri-exports.

Bagabe said key interventions will address persistent challenges such as inadequate logistics for perishable goods, limited cold chain capacity and insufficient cargo space for horticultural exports.

Plans include integrating cold chain systems within the 10,000-hectare Gabiro Agribusiness Hub Phase II in Eastern Province, expanding RwandAir’s fleet with large dedicated cargo aircraft, and upgrading rural road infrastructure.

On compliance, he emphasized meeting international market standards to avoid product rejections, noting that the government is working with regulators to support field inspections, registration and quality monitoring.

To raise productivity and create economies of scale, the government has mapped about 485,000 hectares into “food basket sites”—aggregated farmlands where coordinated input use, advisory services and performance monitoring will be prioritized.

Sakina Usengimana, Managing Director of Afri Foods Ltd, called for tailored financing for smallholder farmers linked to exporters and stressed sustainable production to meet export demand.

Robert Rukundo, Chair of the Horticulture Exporters Association of Rwanda, urged consistency in productivity, volume and quality to capture premium markets.

Under PSTA 5, chili export revenues are projected to rise from $6 million to $48 million by 2029, driven by demand in Asian markets such as China and India.

Coffee earnings are expected to increase from $78.7 million to $115.5 million, supported by replacing aging trees and expanding production areas. Despite growth in specialty products—fully washed coffee accounted for 76 percent of exports in 2023/24—value addition remains limited, with roasted coffee under 1 percent of exports and only a quarter of tea sold through direct channels.

The government plans to scale up value-added coffee to maximize revenues.

Tea exports are forecast to grow from $107.7 million to $164.4 million by 2029, aided by expansion into high-altitude zones and climate-smart practices to mitigate flood impacts on plantations.

Bagabe said aligning policies, financing mechanisms and risk management tools will be key to sustaining growth, adding that a more competitive agri-export sector can drive economic transformation, rural development and poverty reduction.