The recent report of National Agricultural Export Development Board (NAEB) shows that Rwanda generated US$444.8 million (over Rwf447 billion) from agriculture in 2020/2021 fiscal year.
Apart from tea and coffee, fruits and flowers are among businesses generating huge returns in the country. Of the horticultural produce exported within the region in 2020, vegetables came on top with 62.5% of total earnings while fruits accounted for 37.25%. At the global market, earnings from vegetables stood at 37.49% while fruits accounted for 62.75%.
The figures reflect how agriculture presents huge opportunities with high returns and gives optimism that the country’s ambitions to promote agricultural exports are being achieved.
The Government of Rwanda continues to facilitate cross border traders through implemented measures and agreements with partner countries.
It is against this backdrop that Rwanda has signed trade agreements with member states of the Common Market for Eastern and Southern Africa (COMESA). The country also signed similar agreements countries from the European Union and East Africa among others.
All these agreements are expected to remove barriers restricting farmers’ access to markets, improve their livelihoods and enhance their contribution to national economy as well.
Considering the aforementioned agreements as well as high demand and profitability of horticultural produce, we thought it could be your turn to tap into available opportunities and become a millionaire.
This article elaborates some areas of investments in horticulture that could make 2022, the beginning of a new era for a prosperous future.
Passion Fruit
Passion fruit is an ideal product to grow on Rwandan soil.
Varieties grown in Rwanda are Passiflora edulis (Purple passion fruit) and Passiflora flavicarpa (Yellow passion fruit), Sweet passion fruit, Giant passion fruit, Banana passion fruit.
Passiflora Edulis (Purple passion fruit) which grows between 6 to 8 months in Rwanda is the most appreciated on the European market.
Demand for Passion fruit in the European market is estimated at about 375,300 tonnes per year, which translates to about $861 million every year.
As per report released by ‘Manufacturing Africa report’ recently in 2022, the export of passion fruit to the EU can fetch a gross profit margin of 48%, assuming a wholesale price of US$4840 per tonne.
This report also indicates that the transport costs to the EU is approximately US$1800/tonne if the exporters take advantage of Rwandair subsidized tariffs.
Jackson Mugisha, the CEO of Jacks Business Group, a company that works with investors to cultivate Passion fruits, says that the fruit is highly demanded on the market and promising to generate high profit.
“If you want to enter into the passion fruit business it is better to work with experienced companies/farmers that embraced best practices because it is more reliable,” he says.
There are other cooperatives like ‘Coopedush’ which works with many farmers to promote and generate returns from passion fruit business.
NAEB also says that Passion fruit is good crop promising to bring quick profit to the farmers.
Passion fruits mainly grown in Gakenke, Rulindo, Gicumbi, Musanze and Burera districts.
Chia Seeds
Chia seed is an organic product that has been farmed in Rwanda for the past four years. This is one of the few crops that a farmer grows with market assurance as farmers sign a contract with buyers before.
Chia seeds became widely popular in Rwanda after Bertrand Nkurikiyimana from Akenes and Kernels started this project in Ngoma in 2022.
The companies founded by Rwandan diaspora in Belgium and Zambia as an initiative to invest in homeland and contribute to national economy, Akenes and Kernels Ltd and Api organic Rwanda work with Rwandan farmers to grow the crop for exportation.
As the leading exporters of chia seeds in Rwanda, they first sign contracts with farmers as potential buyers.
One of the farmers who works closely with Akenes and Kernels, Fabrice Mukwiye said: “Chia seeds are profitable in a short period of time because their demand is high on the market.”
Between 800kgs and 1200 kgs can be harvested on one hectare. One kilogram is costs Rwf 3000.
They are used for various purposes prompting high demand in the European and Latin American market. Among the many benefits, Chia seeds helps with blood pressure and reduce the risks of heart diseases, to name a few.
Currently Chia seeds are grown in Kirehe, Bugesera, Kayonza, Nyagatare and Rwamagana districts.
Chili/hot pepper
Chili is in high demand on the European and Chinese market.
Some of the varieties grown in Rwanda are the Rwandan bird eye chili, Red chili, Orange chili, Yellow chili and Habanero.
According to the ‘Manufacture Africa report’, European demand for chilli is roughly 1.5 million tonnes per year, which translates to about US$ 2.7 billion, while China needs 78,500 tonnes at a value of US$56 million.
The same report showed that the export of Fresh Chili to the EU can fetch a gross profit margin of 49%, assuming a wholesale price of US$ 4,360/tonne.
The transport cost to the EU is approximately US$ 1,800/tonne if the exporters take advantage of RwandAir’s subsidized tariffs.
Chili Farmers in Rwanda, reveal they can easily expect half a million Rwandan Francs per week for every 21 Acres of Land farmed.
Some of small holder farmers are working with Gashora farms, the biggest Chili exporter in Rwanda that landed a deal to supply 50,000 tonnes of dried chili worth $100 million to China as local partners.
As per NAEB’s annual report for 2019/20, chili was produced on 881.2 Ha at different sites of Rwabicuma, Muyanza, Musha, and different scattered individual farms located in Ndengo sector of Kayonza district and Kabare sector, Nyagatare, Kicukiro, Bugesera and Rusizi district.
Macadamia Nuts
Macadamia presents a significant investment opportunity for export oriented investors servicing the global market.
A single Macadamia tree bears fruit in 4-5 years, and the profit becomes higher as it gets bigger, one single tree can bear between 50-75kgs.
A Rwandan Farmer that harvests 50-75kgs can expect the profit between Rwf17,500-26,000 in case a kilogram is sold at rwf350.
According to NAEB, there are two processing firms in Rwanda namely; Norlega Macadamia Rwanda Limited and Rwanda Nut.
Norlega Macadamia Rwanda Ltd supplies to local clients such as Hotels, supermarkets and RwandAir.
This type of crop is highly demanded globally and mostly exported to Kenya, Japan and Turkey. A kilogram is generally sold at US$10-20.
NAEB shows that Rwanda produces about 16,000 metric tonnes that generate US$30 million annually.
This nut is currently grown in the Southern, Eastern provinces and the southern part of Northern Province.
French beans
Fresh beans are a profitable crop for which there is a year-round demand. French beans from Rwanda are mainly exported to the United Kingdom, Belgium, France and Dubai.
At least 10 tonnes can be harvested on one hectare and sold at Rwf500 per kg.
NAEB says that processing of the French beans, including canning and freezing, has not yet started in Rwanda. This could be a good business idea and opportunity for investors.
The report released in 2020 by a Netherland based firm named ‘Traide’ indicated that Rwanda exported 451,000 tonnes of French beans in 2018 that the export continues to grow exponentially.
Gicumbi district in the Northern Province is the leading producer of French beans.
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