RWANDA
As nation reconciles with itself, a successful transition helps Rwanda recover from past wounds.

Introduction - Finances - Education/Human resource - Transport and communications - Agriculture - Privatisation - Tourism


Agriculture sector

Turning to commercial farming
Contributing over 40% of the country's GDP and employing close to 92% of the population, Rwanda's agricultural sector is seen as a focal point in the fight against poverty. Because agriculture is mainly subsistence, rural populations remain living under acute poverty with an estimated 60% of the population living on less than one US dollar a day.

It is believed that bringing them into the economy by commercializing agriculture will make a major impact on their welfare. Improved agricultural methods, adding value to products and opening markets for agricultural produce form core strategy for monetising the country's agriculture.

"There is need to employ modern methods of agricultural production. Meaning that we have to look at the genetic part of the crops and animals, the quality of the soils, the nutrition of these domestic animals and also improve the management," emphasizes Dr. Ephraim Kabaija Rwanda's minister for agriculture.

Rwanda has embarked on agricultural intensification and specialisation, which is partly dictated by the shortage of Rwanda's farmland. The farming land amounting to about 1 million hectares for a population of about 8 million puts on average less than 0.7ha per household and in areas that are densely populated, it is as low as 0.4 ha per household.
The government campaign has been trying to orient people to specialize in one profitable enterprise especially on the production of cereals like maize, rice and beans.

The Livestock though of minimal contribution, has seen a steady rise. The agricultural ministry has embarked on a program of importing into the country exotic breeds to get cross breeds that are more productive and resistant to tropical diseases.

Coffee and tea are the two main export crops in Rwanda contributing about 60% of the exports. To improve the returns from coffee and tea sectors, the Rwandan government is committed to liberalisation of the sectors through privatisation of state owned utilities.

The government has adopted a strategy that addresses the issue of participation of nationals and key stakeholders in the ownership of tea factories and estates through privatization. Privatization of the state owned tea estates is expected not only to improve production but also marketing of the crop on top of doubling the earning of the workers on the estates.

There are currently 10 tea estates in Rwanda, one already privatized and the remaining nine under the government parastatal- OCIRThe. Rwandan tea is ranked among the best qualities in the world and much of it is exported to the Middle East and Europe.

Coffee production has been severely affected by the fluctuation of commodities on the world market. However OCIR-Café officials stress that favorable rains that characterized the year 2002 cold see a significant rise in the crop yields amounting to 20,000 tonnes up from 2001 output of 19,000 tonnes. Rwanda's annual coffee output in nearly all Arabic.
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