Source: The New Times
Rwanda, in collaboration with its partners, on September 25, flagged off its first consolidated agricultural product consignment to Ghana as the country seeks to diversify exports under the African Continental Free Trade Area (AfCFTA) agreement, according to industry players.
The consignment transported by RwandAir comprises 400 kilos of tea, 400 kilos of coffee, 100 liters of edible avocado oil, and 50 liters of honey. Tea was sourced from two companies – Rwanda Mountain Tea, and Silverback Tea, with each accounting for 200 kilos of premium organic tea, according to the National Agricultural Export Development Board (NAEB). Coffee was sourced from Pedro’s Coffee, and Igire Coffee, with 200 kilos of specialty Arabica coffee each.
The avocado oil belongs to Avocare Limited, while the honey (described as pure, natural honey and wildflower honey) came from Boukhi Honey, NAEB data indicated.
While Rwanda exported its initial agricultural consignment – from Igire Coffee Limited – to Ghana in 2022, marking the formal start of preferential trading under the AfCFTA agreement, the first shipment consisted of coffee alone.
“This consignment consolidates various agricultural products, including traditional commodities like coffee and tea, alongside emerging high-value products like honey and avocado-based value-added items. The diversity of these products highlights Rwanda’s potential to expand into new markets while fostering competitiveness in high-value sectors,” said NAEB CEO Claude Bizimana.
A partnership between the Ministry of Trade and Industry, Igire Continental Trading Co. Ltd, and Kungahara Wagura Amasoko enabled the development. This USAID-funded project aims to increase high-value agricultural exports to boost incomes for farmers in Rwanda.
Igire Continental Trading Co. Ltd bought the agricultural products and consolidated them into a single consignment with a view to optimising logistics and reducing costs.
A single consolidated export license was issued by NAEB to facilitate the process. Through this innovative approach, the company (Igire Continental Trading Co. Ltd) is piloting a more streamlined export process by incentivizing the consolidation of export products, according to the Ministry of Trade.
By so doing, the ministry indicated, it is leveraging RwandAir’s preferential tariff of $1 per kilo for consignments exceeding one tonne, and $1.40 per kilo for consignments of less than one tonne, while the normal rate is $1.80 per kilo. This preferential rate represents a significant opportunity for businesses to maximize their reach within the AfCFTA market.
Euphrosine Mugeni Niyidukunda, the founder of Avocare Limited, a Huye District-based avocado processing company, said that exporting under the AfCFTA-guided trade initiative is expected to help start-ups like hers to expand their operations and market reach for their products.
“It has been observed that as Rwandans, we are capable of making quality products that can compete on the international market,” she said, pointing out that her company produces between 800 and 1,200 liters of avocado oil per month and “we plan to increase production as markets expand.”
The Minister of Trade and Industry, Prudence Sebahizi, expressed enthusiasm about the initiative.
“By consolidating shipments and benefiting from preferential tariffs, Rwandan businesses will be better positioned to compete in the continental market. We commend Igire Continental Trading Company for its commitment to helping local MSMEs expand their reach,” he said.
Keisha Effiom, the USAID Rwanda Mission Director, said insights from shipments like this one will help refine the AfCFTA process, ensuring smoother trade operations in the future.
“These insights will empower farmers and exporters to streamline processes, meet trade standards, and unlock new opportunities across the continent. This is a moment of growth and innovation for Rwanda’s agribusiness sector as we build a stronger, more connected economy,” she observed.
Under its fifth Strategic Plan for Agriculture Transformation (PSTA5), Rwanda targets to increase its annual agricultural export revenues to $1,981 million in 2028/2029, from $857 million (in 2022/2023), which is the baseline, according to data from the Ministry of Agriculture and Animal Resources.
The strategy is expected to focus on building resilience and sustainable agri-food systems in the country for food and nutrition security as well as boosting exports.
THE AUTHOR: Emmanuel Ntirenganya, The New Times
