Rwanda needs over Rwf 1,000 billion to support modern agriculture programs

By The Inspirer.

The Ministry of Agriculture and Animal Resources (MINAGRI) has announced that Rwanda requires an investment of over Rwf 1,000 billion (approximately $785 million) to advance modern agriculture through a five-year program for agricultural transformation (PSTA 5), which is projected to cost Rwf 7,063 billion.

This program aims to improve the agricultural sector, which supports over 400,000 Rwandans and sustains 69% of households nationwide. Key focus areas include increasing the production of crops such as tea, vegetables, and fruits like avocados and chili peppers; boosting potato production; expanding poultry and pig farming; and enhancing cattle meat production.

Tea: Expected Output and Investments

To develop the tea sector, MINAGRI estimates that $289 million (over Rwf 402 billion) is needed. These funds will be used to plant 300 million tea seedlings, expand tea plantations by 17,000 hectares, and build a tea processing plant in Nyamagabe District. This initiative is expected to increase production from 39 million tons recorded in 2022/2023 and significantly raise revenues beyond Rwf 107 billion.

Poultry and Pig Farming

For poultry and pig farming, $169.8 million is required to increase meat and egg production. This will involve constructing modern poultry housing, animal feed processing plants, and storage facilities for feed ingredients. The projects are expected to benefit over 123,000 individuals.

Crops: Potatoes, Avocados, and Chili Peppers

For potato farming, $63.8 million is needed to enhance the availability of quality seeds, construct high-standard storage facilities, and establish a modern potato processing plant. This will address both domestic and export market demands, as Rwanda currently requires 1.5 million tons of potatoes annually but produces only 865,000 tons.

In the fruits and vegetables sector, especially for avocados and chili peppers, $222.3 million is needed. In the 2022/2023 fiscal year, Rwanda exported avocados worth $6.5 million, with a target to reach 14,000 tons in the next five years. Chili peppers, which hold significant markets in Asia and Europe, generated $6 million in 2022/2023. Rwanda aims to boost these exports, targeting $48 million by 2029 through the PSTA 5 program.

Cattle Meat Production

For cattle farming focused on meat production, $40.2 million has been allocated. Investments will concentrate on the Gako and Gabiro regions, where modern slaughterhouses, leather processing facilities, and cattle feed plants will be established.

Agriculture Development Goals

This program seeks to address challenges such as market shortages, promote climate-resilient farming, and integrate modern technologies into agriculture.
MINAGRI expects both local and international investors to seize these opportunities, with support provided through infrastructure development and access to reliable markets.