The value of goods produced by Rwanda's agro-processing factories has almost tripled, rising from Rwf369 billion in 2017 to over Rwf1 trillion in 2024, as stated by Prime Minister Justin Nsengiyumva. The prime minister shared this information during a joint plenary session of both houses of Parliament on October 2, while presenting the government's initiatives aimed at enhancing citizens' well-being through increased agricultural productivity. Nsengiyumva mentioned that in line with improving agricultural value chains, the government is working to facilitate private sector investments in agro-processing industries. "In this context, the number of agro-processing factories continues to grow. We are pleased that the value of products processed in these factories is increasing. It went up from Rwf369 billion in 2017 to more than Rwf1,000 billion in 2024," he said. ALSO READ: PM Nsengiyumva updates Parliament on efforts to boost agric production The government, according to him, will continue collaborating with the private sector to improve operations and expand the production capacity of agro-processing factories so they can better serve the citizens. Notable companies in Rwanda's agro-processing industry include Inyange Industries, which produces various items such as juice and dairy products, including milk powder, and Africa Improved Foods, which processes fortified flours. ALSO READ: Eleven things about Rwanda’s first powder milk plant Overall, Nsengiyumva said that agriculture, which includes livestock, plays a significant role in the development of the country's industrial sector as it supplies raw materials for various factories, including cereals or grains, fruits, and products from farmed animals. ALSO READ: Experts discuss Rwanda’s domestic food demand outlook The factories, he added, play an important role in providing a market for agricultural produce for value addition and employment. “Labour figures show that approximately 84,300 people were employed in these factories in 2024, compared to 52,700 in 2017,” he said. Efforts to ensure sustainable production, supply PM Nsengiyumva also discussed efforts to increase farm yields to ensure food security and have surplus for both domestic and export markets, noting that agriculture currently contributes about 25 per cent to the national gross domestic product (GDP). One of the measures is increasing fertiliser application. He mentioned that due to the government's encouragement of farmers to use chemical fertilisers, their usage increased from 32 kilos per hectare in 2017 to 73 kilos in 2024, with a target of reaching nearly 95 kilos by 2029. The rise in fertiliser use, combined with other measures implemented to grow the agriculture sector, contributed to higher productivity of priority crops, citing annual maize output. “For example, maize production increased from 400,000 tonnes in 2017 to over 600,000 tonnes in 2024. It is projected that the output will reach 870,000 tonnes in 2029,” he said. To achieve the increased use of fertilisers, the prime minister noted that the government had to raise subsidies or financial support to make fertilisers more accessible to farmers following a rise in global fertiliser prices. This, he said, helped farmers obtain fertilisers at relatively lower prices and also led to increased farm yields. As a result, fertiliser subsidies rose from over Rwf4.4 billion in 2017 to Rwf39 billion in the current fiscal year 2025/26, representing almost a ninefold increase. Starting from the 2026 Agriculture Season A, launched in September, Nsengiyumva said that the government is implementing a new farming approach involving food basket sites – or selected consolidated farmland areas intended for large-scale food production. So far, he said that more than 19,000 food basket sites have been identified, covering over 587,000 hectares where efforts should be focused under this initiative to utilize arable land. “This initiative is expected to bring together the government, investors, research institutions, and farmers in developing a sustainable agricultural system that delivers marketable, high-value produce,” he said. Another focus area is building agriculture's resilience to climate change, such as through irrigation in case of drought or insufficient rainfall. Nsengiyumva stated that irrigated land has increased to over 74,000 hectares currently, up from over 52,000 hectares in 2017, with a target of expanding the area under irrigation to over 132,000 hectares by 2029. Under the second phase of the National Strategy for Transformation (NST2), which runs from 2024 to 2029, the government aims to transform agriculture into a more productive, market-oriented, and sustainable sector, targeting an average annual growth rate exceeding 6 per cent. Key priorities during this period include increasing productivity by 50 per cent for priority food crops, such as maize, beans, potatoes, rice, and cassava. This is expected to ensure food security, promote self-sufficiency, and create export opportunities.
Provided by SyndiGate Media Inc. (Syndigate.info).
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