Rwanda fetches Rwf27bn from horticulture exports

•  

  Workers package fruits and vegetables for export in Kigali. Rwanda exported some 31,788 tonnes of horticulture commodities, which generated US$28.7 million during the 2019/20 fiscal year. / Photo: File.

• 

  Women dry chilli in Bugesera District before it could be packaged and exported to India. / Photo: Jean de Dieu Nsabimana.

Rwanda exported 31,788 tonnes of horticulture commodities (vegetables, fruits and flowers) which generated $28.7 million (about Rwf27 billion) during the fiscal year 2019/20, indicate figures from the National Agricultural Export Development Board (NAEB).

This represents an increase of 5 per cent compared to $27.1 million generated from over 37,343 tonnes of horticulture exports in 2018/19.

NAEB CEO, Claude Bizimana told The New Times that in terms of exports volume, formal exports accounted for 54 per cent while informal exports represented 46 per cent in 2019/2020. Considering the exports value, he said, the share formal exports took a share of 81 per cent.

Rwanda’s horticulture exports are dominated by onion, fresh beans, fresh peas, tomato, cabbage, carrots, cucumber, eggplants, French bean, pepper and mushrooms.

DR Congo, United Kingdom, France, Netherlands, United Arab Emirates, Belgium and Vietnam are the major export markets for Rwanda’s horticulture products.

“Despite Covid-19, the prices for Rwandan horticulture products were quite good and manageable disruptions with regular flights (cargo) to our destination markets, government support to freight price,” he said. 

The exports were driven by expansion in flowers (both roses and summer cut flowers), good production for vegetables and fruits, and investment in irrigation infrastructures that ensure consistent production and supply throughout the year, he disclosed.

Speaking to The New Times, Donatille Nibagwire, the owner of Floris – a horticulture exporting company – said that Rwanda’s horticultural products are sought after in the export market. The company exports bananas, avocadoes and chilli.

“Though our horticultural exports reduced by about 2 per cent in volume, overall, the revenue performance was good as prices increased by about 20 per cent this year compared to last year,” she said, adding that the reduction in volumes was attributed to the increase in air transport costs from $1.2 to $1.8 a kilogramme.

“Despite the Covid-19 pandemic, we managed to maintain our markets. The major issue was the increased airfreight charges,” she said, pointing out that people need food at all times.

Challenges and how to tackle them

Regarding challenges, Bizimana said that market dynamism is difficult to manage with ongoing disruptions from Covid-19 pandemic where countries are abruptly taking decisions that have negative impacts on flights and orders from the importers, loss to farmers as buyers cancel orders at the last minute with no other market opportunities.

On measures to mitigate the challenges, he cited strong market intelligence to ensure timely availability of market information and inform farmers and exporters on time, and continue to closely working with airlines to support the industry in these difficultly periods.

Others are product diversification and value addition [to fetch higher revenues], as well as to find other alternative markets, such as the Middle East.

Rwanda targets $130 million from horticulture exports by 2024.

Strategies to achieve that target, Bizimana said, include increasing investment to ensure the production of quality fresh produce that is competitive on market and the use of quality inputs to increase productivity.

He also cited creating professionalism in the sector with the involvement of youth and women, and strong coordination and partnerships with airlines to ensure the availability of cargo space.