Rwanda seeks USD 1.7B investment for agriculture and livestock opportunities

RWANDA – Rwanda is inviting investors to contribute over $1.68 billion toward transforming its agriculture and livestock sectors, as outlined at the 2024 Africa Food Systems Forum (AFS Forum 2024) held in Kigali.

The country’s ambitious plan, called the Rwanda Legacy Program, aims to improve food security, create jobs, and support export growth, particularly for key products such as avocados and chillies.

The Rwanda Legacy Program is structured around four main components designed to revamp the nation’s agriculture and livestock industries.

The program aims to enhance food security and economic resilience by drawing in both public and private partnerships (PPP). “We want to be more resilient in terms of household consumption and food security,” said Ildephonse Musafiri, Rwanda’s Minister of Agriculture and Animal Resources.

Agriculture remains a cornerstone of Rwanda’s economy, contributing 27% to the nation’s GDP in 2023.

According to officials, the program’s first component focuses on high-potential agricultural crops, such as avocados and chillies.

The second component addresses the poultry and beef industries, aiming to boost production and improve nutrition across Rwanda.

The remaining components focus on innovative finance models and governance strategies that ensure the smooth implementation of the program.

Avocado exports: A key focus

Avocados are one of the key products targeted for investment under the program. Rwanda’s avocado industry has seen promising growth, with 2,230 tonnes exported in 2022, generating USD 4.7 million in revenue.

To keep up with growing international demand, Rwanda plans to scale its avocado production by increasing the farming area from 517 hectares to 4,933 hectares by 2028/29.

This expansion will require an investment of USD 143.5 million. Of this, $99 million will be used to increase the domestic production area, while USD 12.5 million will go toward expanding processing capacity.

Rwanda also aims to increase avocado exports to major markets, including Europe and China. “We are targeting to grow our avocado exports by an average annual rate of 155%,” said Minister Musafiri.

Avocados are expected to become the world’s most traded tropical fruit by 2030, surpassing mangoes and pineapples, according to the Food and Agriculture Organization (FAO).

Massive investment needed for chilli expansion

Rwanda’s chilli industry is also poised for significant growth, with plans to boost exports by 500% over the next six years.

In 2023, Rwanda exported 3,403 tonnes of chilli, bringing in USD 4.2 million in revenue. To meet the rising demand, the country is set to invest USD 470 million in production, processing, and export infrastructure.

The expansion will see the chilli farming area grow from 533 hectares to 4,457 hectares. “We have already established markets for chillies in Europe, China, and the Middle East, and we plan to expand into new territories like India,” Musafiri added.

Rwanda’s growing export capacity, especially in avocado and chilli production, aligns with the global trend of increasing demand for these high-value crops.

Rwanda’s success in agricultural development has not gone unnoticed. The country has received the Award for Best Achievers of the Malabo Target under the Comprehensive Africa Agriculture Development Programme (CAADP) four times in a row.

“Rwanda is setting an example for the rest of Africa,” said FAO Assistant Director-General Abebe Haile-Gabriel.

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