Long-term producer of commodity-grade coffee, Rwanda is implementing new initiatives to modernize the coffee sector aimed at increasing production and quality, aiming to improve profits for the 400,000 families that depend on the coffee sector. This year, the Ministry of Agriculture estimates a crop of around 25,000 tons, which will bring in around US$3 million for the country's growers.

Ephrem Niyonsaba, director of the Rwanda Coffee Board, is keen to work with Chinese investors to produce and distribute coffee. He says there are big opportunities for companies who manufacture pesticides and fertilizers to set up in Rwanda.

"The cost of importing is a big cost for us. We would like to source these materials in China which could be cheaper than sourcing them in Europe. We know that the Chinese can supply these at a cheaper price. I would like to look into China supplying equipment for the whole coffee sector. Currently we source from England, Kenya and India. We already import some equipment from China but not much," he explained.

Niyonsaba says Rwandan coffee growers are open to partnerships and joint ventures with the Chinese for exports. "Our coffee is of excellent quality and one of our challenges is in marketing and selling and we would like to work with the Chinese in this area to be able to export to all parts of the world. I'm sure the Chinese could work with us in promoting our coffee worldwide."

Rwanda has already begun promoting its coffee in China, but as Niyonsaba points out: "The market is fairly difficult to penetrate and thus we need a Chinese partner to help us with this. We don't know the exact requirements of the Chinese market and the Chinese could help us with this."

Rwanda has produced commodity-grade beans for many years, but has only recently begun to develop a gourmet coffee industry and there are also possibilities to supply the specialty and quality coffee markets.

"Rwanda is a producer of quality coffees and our goal is to increase the production of quality coffees. We don't want to compete in terms of quantity, but in the quality of our coffee," says Niyonsaba. Rwanda already supplies the American market, including Starbucks, a firm known to be extremely demanding regarding the quality of the coffee.

"My vision is to transform the Rwandan coffee industry into the best supplier of coffee in the world: this is the only way to make sure this sector contributes the most to this country. While coffee prices fluctuate greatly, prices for top-quality coffee stays fairly stable," says Niyonsaba.

Long history

Rwanda's coffee industry dates back to the beginning of the 20th century, and reached a maximum production of 43,000 tons of green coffee in 1986. During the years that followed, from 1987 to 1993, production slumped to an average of 30,000 tons of green coffee.

After the war and genocide in 1994, the situation became worse and production fell to 55 per cent of that of 1993, reaching only 14,268 tons in 1998.

With the implementation of the new coffee sector development strategy in 1998, the situation has improved dramatically.

In accordance with the government's Vision 2020, the Rwandan coffee sector has steadily broken away from the cycle of low production-low quality and has focused on a strategy towards competitiveness in the international market.

Rwanda offers ideal conditions for growing Robusta and Arabica coffees, and the best-known type from the country is Maraba Arabica Bourbon, appreciated for its rich, deep flavour. In the same way that Jamaica's Blue Mountain has become synonymous with high quality, Rwanda's Thousand Hills brand is fast becoming a household name in markets such as the United States.

Investing in quality

If production and quality from the coffee plantations continue to improve at present rates, Rwanda could produce at least 37,000 tons by 2010, of which 60 per cent would be fully washed, and earn more than US$65 million.

Niyonsaba highlights the importance of public/private partnerships in executing the defined programme. Public organizations alone cannot achieve the intended objectives.

Once the actions to be undertaken have been defined, the different ministries concerned can then be involved in collaboration with the different partners of the private sector.

The transformation of Rwanda's coffee sector is a long-term process, but the opportunity exists for it to have a real impact on the different strata involved in the sector at the national level, especially for coffee producers.

(China Daily 10/13/2006 page17)