Rwandan Flower Exports to the UK Surge Following Tax Exemption

The Inspirer.

Six months have passed since the UK government decided to remove the 8% tax it had been charging on flowers imported from East African countries. This decision, which will last for two years according to the UK government, was aimed at easing the export of flowers from these regions to the UK.

At the time, the UK announced that the tax removal would benefit flower exporters globally, but especially those in Kenya, Ethiopia, Rwanda, Tanzania, and Uganda. This move has greatly helped Rwandan flower growers, with some seeing their exports increase nearly tenfold compared to before the tax removal, as the Head of Sales at Bella Flowers, a company that grows and sells roses, told RBA.

Wambua Bernard Muthoka explained that before the tax exemption, they were exporting around 20,000 flowers per week, but this figure has now reached 200,000 flowers per week. He said, “Based on market indicators, we expect to profit significantly. Even this number of 200,000 flowers per week is expected to rise. Previously, it was as if we hadn’t fully entered the market, but now, with the tax exemption, we are taking full advantage of this opportunity.”

To transport flowers to the UK, RwandAir charges traders $1.8 per kilogram of flowers, while Ethiopian Airlines charges $1.9, and KLM charges $3.5 per kilogram.

However, some flower growers are still unable to access international markets due to a lack of resources and failure to form cooperatives, which prevents them from exporting flowers individually. One grower explained, “I found a market in the Netherlands, but they require shipments at least twice a week. I haven’t sent flowers recently because sending small quantities leads to losses. If we could join forces and combine our production, we could meet the market demand and improve our operations.”

The UK government reports that flowers exported from Rwanda to London in 2023 were valued at £727,000 (approximately 1.1 billion Rwandan Francs). Ethiopia exported the most flowers to the UK, valued at £12.6 million, followed by Uganda with £1.1 million worth of flowers, while Tanzania exported flowers valued at £839,000.

Statistics from the National Agricultural Export Development Board (NAEB) show that Rwanda’s exports of flowers, vegetables, and fruits have been increasing in the international market. In 2017, 40 tons were exported per month, but this figure has now exceeded 1,000 tons per month.

In the 2021/2022 fiscal year, vegetables and fruits generated more than $42.8 million for Rwanda, and in 2022/2023, this increased to over $58.1 million. From July 2023 to February 2024, Rwanda exported vegetables, fruits, and flowers valued at $46 million.

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