Economic Analysis of the Coffee Market in Rwanda

Abstract

Coffee contributes significantly to the economy of Rwanda as a major export product and the livelihood of thousands of Rwandans. As such, the government of Rwanda has taken great strides to develop the coffee production sector particularly in developing infrastructure impacted by the genocide and implementing policies to ensure sustainable growth. This study aimed to give an economic analysis of the coffee market in Rwanda. It examined the factors affecting the coffee market and identified the major in the market globally and regionally and used them as a benchmark for comparison. The study showed various measures being taken to increase the quantity of coffee produced including increasing the area of harvested coffee following a drop in area from a high of 55 000 hectares in 2014 to 21 700 hectares in 2019. Rwanda’s National Agricultural Export Board implemented measures to improve yields and production quality through providing fertilizers, improving management of wash stations and engaging private stakeholders and NGOs to train farmers in smart agriculture techniques. Consequentially the quantity of coffee produced and exported improved between 2014 and 2019.