The Minister of Agriculture and Animal Resources, Ildephonse Musafiri, on October 15, presented five key investment opportunities in Rwanda’s agriculture sector that need $785 million (approx. Rwf1 trillion) investment outlay to potential investors at the World Food Forum 2024, in Italy. The World Food Forum 2024 runs from October 14 through 18, at the headquarters of the Food and Agriculture Organization of the United Nations (FAO) in Rome, Italy. It brings together world experts, impassioned changemakers, and visionary leaders, according to FAO. The opportunities Musafiri presented are in tea production and processing, horticulture (targeting avocado and chilli), Irish potato production and processing, small livestock production (poultry and pigs), and beef production. ALSO READ: Horticulture: Rwanda’s new cash cow The minister indicated that the investment opportunities are ripe, inviting investors to participate in Rwanda’s agriculture through the Hand-in-Hand Initiative, contributing not just to business growth, but also to the sustainable development of the nation. Rwanda aims to foster an innovative environment that attracts investment, ensuring a thriving agricultural sector, he said. The initiative was developed by the ministry of agriculture in partnership with FAO. It aims to accelerate agricultural transformation and sustainable rural development. All five investment opportunities are in line with Rwanda’s agricultural transformation goals under its Fifth Strategic Plan for Agriculture Transformation (PSTA 5) covering the 2024-2029 period, with a focus on increasing productivity, creating jobs for women and youth, expanding irrigated land, and building resilient, sustainable agri-food systems. Tea production and processing An investment totalling $289 million is needed, aimed at leveraging Rwanda's favourable tea-growing conditions and the increasing global demand, according to the ministry. The plan includes producing 300 million tea seedlings [for planting], expanding tea cultivation across 17,000 hectares, and establishing a new tea factory in Nyamagabe District. Additionally, part of the funding will be channelled to the construction of feeder roads to ensure efficient supply chain logistics. The project is expected to directly benefit about 85,000 individuals. Small livestock production For livestock, an investment of $169.8 million is required, targeting poultry and pig production to meet rising domestic and regional demands. Planned interventions include establishing a layer chicken hatchery, a breeding farm, a feed processing plant, and silo storage facilities for poultry and pig feed. Model poultry and pig farms will also be developed. The project is expected to directly benefit about 123,000 and 69,953 pig and poultry farmers Irish potato production and processing An investment of $63.8 million to support the expansion of potato production and processing for local consumption and export, is targeted. This includes producing early-generation potato seeds such as tissue culture plantlets and micro-tubers, establishing standardised storage facilities, and setting up a potato processing plant. The project is expected to benefit 41,772 potato producers, out-growers and processors and indirectly 245,341 potato value chain. On September 6, during the 2024 Africa Food Systems Forum (AFS Forum 2024 held in Kigali, Musafiri said Rwanda needs an estimated 1.5 million tonnes of potatoes per year. It produces less than that – with the current annual production estimated at slightly over 865,000 tonnes, which represents a gap of more than 633,500 tonnes. This, he said, requires efforts to meet the demand. Horticulture (avocado and chilli) Investments totalling $222.3 million, including $40.5 million for avocado production hubs focusing on orchard plantations, and $181.8 million for chili peppers targeting high-value markets, is envisaged. Avocado and chilli are relatively new value chains in Rwanda in terms of exports, but they have a great potential for growth, especially considering their demand on international markets, according to people with interest in them. ALSO READ: From simple crop to cash cow: How avocado became profitable Avocado exports registered a high growth within a decade as they generated about $6.3 million in 2022/2023 — through selling about 3,200 tonnes to international markets — which is more than 13 times the $440,000 annual revenue they brought in around 2013, according to data from National Agricultural Export Development Board (NAEB). Avocados, beyond their nutritional value, offer a growing export opportunity for Rwanda. The country's goal is to increase avocado exports from the current 3,760 tonnes in 2023 to 14,975 tonnes by 2029. Chilli represents a significant opportunity for increasing Rwanda's agricultural exports, particularly to markets in Asia and Europe. During the 2022-2023 period, Rwanda exported more than 2,000 tonnes of chili, generating slightly more than $6 million, according to the ministry, and the country aims to boost chili exports to more than $48 million by 2029 (under PSTA 5). Beef production In this area, Rwanda wants an investment of $40.2 million to develop commercial beef production systems. According to the ministry, while the demand for beef is continuously growing in Rwanda and beyond, driven by the expansion of tourism and increased government efforts in promoting exports, the country faces challenges in fully capitalising on this market opportunity. Suitable sites have been identified in the Gako and Gabiro agri-hubs located in Rwanda’s Eastern Province, with investments planned for cattle restocking, a modern slaughterhouse, an animal feed mill, and hides and skins processing, according to the ministry.
