The Proposal

Rwanda Typologies

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Government of Rwanda: Investment cases in Rwanda

Rwanda Investment Cases and Interventions

Tea Production and processing

Tea is a vital cash crop and a key export product for Rwanda, identified as a high-potential value chain in the NAEB strategic plan. The country's ideal climate and relatively high acidic soil create favorable conditions for cultivating high-quality tea, which commands premium prices at the Mombasa auction.

The HIH investment plan aims to produce 300 million tea seedlings, expand tea cultivation across 17,000 hectares, and establish a new tea factory in Nyamagabe District. A portion of the investment will also be dedicated to building feeder roads to ensure efficient supply and easy access to main transport routes.

This investment will primarily focus on Nyamagabe and Ngororero Districts, along with selected micro-regions of the Gitwe-Kaduha Corridor, as part of the Government's initiative to target districts with high poverty rates. The total investment required is estimated at USD 289 million, with a combined Net Present Value (NPV) of approximately USD 129.7 million and an average Internal Rate of Return (IRR) of 22.3%.

The project is expected to directly benefit about 85,000 individuals and indirectly impact around 195,831 people. Through these investments, the average income increase for each beneficiary is projected to be around USD 1,065.

Small livestock production ( poultry and pigs)

Under the Fifth strategic plan for Agriculture transformation (PSTA 5), pigs and poultry are recognized as significant sources of protein and income for smallholder farmers in the identified

regions. Currently, there are no layer chicken hatcheries in HIH districts, which correlates with a low per capita egg consumption. Additionally, the availability of quality feed remains a challenge, as essential ingredients like soybeans and maize often compete with human consumption. Although there are six feed factories in operation, producing slightly over 150,000 tons of commercial poultry feed per year, none are located in the HIH zones.

Despite a strong domestic and international demand for eggs, chicken, and pork, production remains low, with an estimated poultry population of 5.5 million and 1.5 million pigs as of 2021.

The planned intervention includes: (i) establishing a layer chicken hatchery and breeding farm, (ii) setting up a feed processing plant along with storage facilities (silos) for poultry and pig feed, and (iii) developing model poultry and pig farms. The total investment required for these initiatives is estimated at USD 169.8 million, with a projected NPV of USD 126.9 million and an IRR of 27%.

The project is expected to directly benefit about 123,000 & 69,953 pig & poultry farmers and 339,304 & 311,365 poor local communities indirectly.

Through these investments, the average income increase for each beneficiary is projected to be around USD 1,040.

Potato 63.8 Million USD 66,306 Beneficiaries

Irish Potato production and processing

Previous suitability studies have identified Irish potatoes as a high-potential crop for cultivation in the HIH districts. In 2023, a total of 6,496 hectares were planted with Irish potatoes in Nyamagabe, 5,723 hectares in Nyaruguru, and 3,753 hectares in Ngororero. However, the average yield in these districts was 5.1 metric tons per hectare, significantly lower than the average yield of 11.5 metric tons per hectare recorded in the northern districts of Musanze, Nyabihu, and Rubavu (NISR, Seasonal Agriculture Survey 2023). This yield gap is partly attributed to the limited availability and timely access to early generation potato seed (EGPS).

Currently, there are no potato processing facilities in the HIH districts. To address these challenges, the proposed investment plan includes the following interventions: (i) production of EGPS, including tissue culture plantlets, micro-tubers, and pre-basic seed, (ii) development of standardized potato storage facilities, and (iii) establishment of a potato processing plant.

The total investment required for these initiatives is estimated at USD 63.8 million, with a projected NPV of USD 15.9 million and an IRR of 29%.

The project is expected to benefit 41,772 potato producers, out growers and processors and indirectly 245,341 potato value chain actors. The expected per capita increase in income is estimated at US$ 569.7.

Avocado and Chili 222.3 Million USD 125,070 Beneficiaries

Horticulture (Avocado and Chili)

Beef, avocado, and chili are among the flagship investment projects featured in the Rwanda Legacy Program, which was launched during the African Food Summit held in Kigali in September 2024. The Legacy Program aims to develop operational and bankable investments to transform Rwanda's agriculture sector, create jobs for youth and women, and enhance food security and agricultural exports.

Avocado Investment

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 metric tons in 2023 to 14,975 metric tons by 2029. To achieve this, the strategy includes establishing avocado production hubs in selected areas, focusing on orchard plantations. The total investment required for this initiative is estimated at USD 40.5 million, with aNPV of USD 4.6 million and an IRR of 19%.

Chili Investment

Chili represents a significant opportunity for increasing Rwanda's agricultural exports, particularly to markets in Asia and Europe. During the 2022-2023 period, Rwanda exported 2,059 metric tons of chili, generating revenue of USD 6,095,189 (NAEB Statistics Report 2023). The country aims to boost chili exports to USD 48,135,192 by 2029 (PSTA 5). New irrigated farming schemes are being developed in Gabiro and Gako in the Eastern Province, where private investors are encouraged to participate. The economic analysis for this investment requires a total of USD 181.8 million, with a projected NPV of USD 6.48 million and an IRR of 18%.

The two investments are expected to benefit 37,190 avocado and chili producers, processors and exporters and 87,880 indirect beneficiaries.

Average per capita increase is estimated to beUS$ 850.

Beef 40.1 Million USD 40,000 Beneficiaries

Beef

The demand for beef is continuously growing in Rwanda and beyond, driven by the expansion of tourism and increased government efforts in promoting exports. However, Rwanda faces challenges in fully capitalizing on this market opportunity.

The country lacks well developed commercial beef production systems and private sector initiatives. Most of the beef produced is of low quality, consumed fresh, and involves limited value addition. The meat production and processing industry is primarily dominated by smallholder farmers and small and medium-sized enterprises (SMEs) engaged in value addition and processing.

The government has identified suitable production sites in the Gako and Gabiro agri-hubs and has begun investing in basic infrastructure to attract private investors. Planned investments in these areas include (i) cattle restocking, (ii) the establishment of a modern slaughterhouse, (iii) the development of an animal feed mill, and (iv) the processing of hides and skins.

The total cost of the proposed investment is estimated at USD 40.2 million, with an NPV of USD 141 million and an IRR of 22%. The investment is expected to benefit 5,000 direct beneficiaries and 35,000 indirect beneficiaries.

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