The National Agricultural Export Development Board (NAEB) saw its mandate expanded by the Cabinet mid-last month. It will now be able to facilitate investors in the agriculture sector. The agro-exports promotion body will also now operate as a state enterprise that will provide export development services to the private sector, and carry out sector-related investments to boost exports. The latest reform breathes new life into the sector which continues to face serious challenges.

The lucrative flower industry, for instance, is yet to take root despite Rwanda having both the climate and soils that are suitable for cut roses growing. The Gishari Flower Park in Rwamagana is yet to start flower production three years after it was expected to begin cut roses exports to Europe.

Rwanda stopped exporting roses to Europe in 2008, after the sole exporter, Rwanda Flora, failed to sustain the market due to low volumes. The challenges faced by flower growers represent facing the agriculture industry, in general, and have affected production and export volumes as well as revenue from the sector. Therefore, the step taken by the Cabinet gives NAEB the requisite support to initiate programmes that would help rejuvenate the sector and spur production and earnings, especially by small holder farmers across the country.

Rwanda’s exports dropped over the first half of last year to $275.28 million down from $293.61 million during the same period in 2014. And the country’s formal exports earnings decreased by 6.7 per cent during the third quarter of 2015. Therefore, the intervention by the Cabinet is critical since the sector employs as many as 72 per cent of the Rwandan population and is the third biggest contributor to GDP having added 5 per cent during third quarter of last.

Now that NAEB can engage in infrastructure development to support the sector there is hope that effective measures will be taken to deal with the prevailing challenges. However, it will need to identify the right investors to partner with to avoid what has befallen such projects as the flower park development scheme.

There will also be need for targeted capacity building to ensure the country has the right personnel to run the sector.