Rwanda 2026
Agriculture remains the backbone of Rwanda's economy and is central to the country's socio-economic transformation as it pursues its vision of becoming a knowledge-based, high-income economy by 2050. According to the Fifth Population and Housing Census (2022), nearly 69% of Rwandan households are engaged in agriculture, and approximately 400,000 people are employed in agri-food systems. The sector is a key driver of economic growth, social transformation, women's economic empowerment, and youth employment.
From 2017 to 2024, agricultural development contributed significantly to poverty reduction, lowering the national poverty rate from 39.8% to 27.4% (EICV 7). In 2025, agriculture accounted for 20% of Rwanda's GDP (National Accounts 2025) and approximately 37% of total exports (MINAGRI Annual Report, 2024/25). As Rwanda advances toward upper-middle-income status by 2035 and a high-income economy by 2050, the agriculture sector will remain a critical engine of economic growth and poverty reduction.
The Government of Rwanda has completed its Fifth Strategic Plan for Agriculture Transformation (PSTA 5) for 2024–2029, themed "Building Resilient and Sustainable Agri-Food Systems." PSTA 5 builds on the "Planning for Wealth" agenda established under PSTA 4, with a continued focus on transforming agriculture into a prosperous, green, and market-driven sector.
To support this transformation, Rwanda actively promotes both foreign and domestic investment through an enabling business environment. Through the Rwanda Development Board (RDB), the country offers a comprehensive package of financial and non-financial incentives under Investment Law No. 006/2021 of 05 February 2021. Business registration can be completed in under 24 hours via RDB's digital one-stop centre.
The Hand-in-Hand (HiH) Initiative in Rwanda complements the Rwanda Legacy Programme, launched at the African Food Summit held in Kigali from 2–6 September 2024. The initiative focuses on seven priority value chains: Tea, Coffee, Irish Potato, Avocado, Chili, Pig, and Poultry. It is structured around three integrated components:
Agriculture: Targeting crops such as tea, coffee, avocado, chili, and Irish potato, this component leverages public-private partnerships (PPPs) and innovative business models to engage youth in agri-food value chains, incorporating agri-tech and fintech solutions.
Small Livestock: This component aims to transform the pig and poultry sectors through a public-private partnership approach, enhancing both nutritional outcomes and export potential.
Innovative Finance: Comprising a risk-sharing facility (RSF) and catalytic financing instruments for agri-food SMEs, this component supports financial innovation and is integrated with the agriculture and animal resources components to accelerate sector growth.
Together, these components reinforce Rwanda's vision of a resilient, sustainable, and prosperous agricultural sector.
Geospatial Typologies
Agro-informatics connects information technology with the management, analysis and application of agricultural data to indentify territories with untapped agrifood potential and design more accurate and targeted agrifood interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.
POVERTY
POTENTIAL
EFFICIENCY
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Invest in Rwanda
Investment cases and interventions
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Tea production and
processing
INVESTMENT
USD 92.8M
INTERNAL RATE OF RETURN (%)
20.1%
NET PRESENT VALUE
USD 46.35M
DIRECT BENEFICIARIES
85,000
INDIRECT BENEFICIARIES
195,831
INCOME INCREASE PER CAPITA
1,065 USD/person
EMISSION REDUTION (EXACT)
3.7Kg CO₂e/Kg
Rwanda's tea production has grown from 5,910 MT in 1980 to 40,003 MT in 2023/24, generating USD 113.1 million in export revenues in 2024 and ranking the country as the 15th largest tea exporter globally. The sector benefits from ideal growing conditions, premium auction prices, and ongoing expansion supported by quality seedlings, high-yielding clones, and product diversification across 10,964 ha.
Under the Hand-in-Hand Programme, the Government plans to:
Expand tea cultivation by 10,964 ha and establish three new tea factories across three sites in South-West Rwanda: the Kaduha–Gitwe Corridor (6,954 ha), Bweyeye (2,008 ha), and Rangiro (2,000 ha),USD 36.2M, Set up nurseries to produce 150 million high quality seedlings USD 10 M, Establish a tea research centre on improved tea varieties. USD 20 M, Construct a tea blending facility to support value-added tea production for domestic consumption and export (USD 26.6M).
The total investment of USD 92.8M delivers an NPV of USD 9.4M for the Kaduha–Gitwe Corridor and USD 1.7M for the Bweyeye site, with respective IRRs of 23.6% and 16%. The tea investments will directly benefit 85,000 people and indirectly impact a further 195,831 individuals.
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Coffee production and processing
INVESTMENT
USD 45.9M
INTERNAL RATE OF RETURN (%)
22.8%
NET PRESENT VALUE
USD 46.3M
DIRECT BENEFICIARIES
450,000
INDIRECT BENEFICIARIES
200,000
INCOME INCREASE PER CAPITA
1,065 USD/person
EMISSION REDUTION (EXACT)
-- tCO₂e
The Government is implementing a USD 45.9 million investment plan to boost productivity, quality, and global competitiveness, comprising:
Expansion of coffee plantations by an additional 10,000 ha (USD 21.7M),Establishment of a Rwanda Coffee Digital Market Platform to connect producers with global buyers (USD 6M), Investment in a value addition and product diversification facility with an annual processing capacity of 4,752 MT across multiple product lines (USD 18.2M).
The total investment delivers an total NPV of USD 46.3M and an average IRR of 22.8%.
Irish potato
INVESTMENT
USD 33.8M
INTERNAL RATE OF RETURN (%)
29.2%
NET PRESENT VALUE
USD 15.9M
DIRECT BENEFICIARIES
41,772
INDIRECT BENEFICIARIES
245,341
INCOME INCREASE PER CAPITA
569.7 USD/person
EMISSION REDUTION (EXACT)
0.31Kg CO₂e/Kg
The USD 33.8M investment plan will:
Invest in early generation seed production, including one tissue culture plantlets laboratory and ten hydroponic greenhouses, each with a capacity of 500,000 to 600,000 mini-tubers per season (USD 20M), Establish 8 improved potato storage facilities with a capacity of 2000 MT each (USD 9.6M),Construct a potato processing plant with a capacity of 10 MT/day, producing chips and potato powder for domestic and export markets (USD 4.2M).
With an NPV of USD 15.9M and an IRR of 29.5%, the project will directly benefit 41,772 producers and generate indirect impacts for 245,341 value chain actors.
Small livestock production
INVESTMENT
USD 169.8M
INTERNAL RATE OF RETURN (%)
27%
NET PRESENT VALUE
USD 126.9M
DIRECT BENEFICIARIES
192,953
INDIRECT BENEFICIARIES
710,304
INCOME INCREASE PER CAPITA
927.6 USD/person
EMISSION REDUTION (EXACT)
63.5 Kg CO₂e/Kg
The USD 169.8M investment will:
Establish a layer hatchery and genetic improvement farm (USD 59.9M), Develop model animal hubs for poultry and pig production (USD 51.1M),Build a feed production facility (USD 39.8M),Construct 10 slaughterhouses (USD 19M).
With an NPV of USD 126.9M and an IRR of 27%, the project will directly benefit 123,000 pig farmers and 69,953 poultry farmers, with indirect impacts reaching over 710,304 people.
Avocado and chili
INVESTMENT
USD 8.5M & 64M
INTERNAL RATE OF RETURN (%)
19% & 18%
NET PRESENT VALUE
USD 3.4M & 5.4M
DIRECT BENEFICIARIES
37,190
INDIRECT BENEFICIARIES
87,880
INCOME INCREASE PER CAPITA
850 USD/person
EMISSION REDUTION (EXACT)
-- tCO₂e
Avocado and chili are flagship projects under the Rwanda Legacy Programme, launched at the African Food Summit in Kigali (September 2024). Both value chains were selected to attract operational, bankable investments that generate employment for youth and women and drive export growth.
Avocado & Chili
Rwanda's avocado export revenues are targeted to grow from USD 8.38M in 2024 to USD 12.96M by 2029 (PSTA 5).
The investment strategy focuses on establishing production hubs and orchards consolidating and scaling up to 2,533 ha by 2029. The total avocado investment of USD 8.5M delivers an NPV of USD 3.4M and an IRR of 19%.
Chili exports reached USD 5.3M in 2022–2023, with revenues projected to grow to USD 48.14M by 2029 (PSTA 5). The investment plan includes:
Investment in high-quality, certified chili seed production. Development of protected agriculture infrastructure, including greenhouses for fresh chili exports. New irrigated schemes in the Eastern Province present strong opportunities for private investors. The total chili investment of USD 64M delivers an NPV of USD 8.8M and an average IRR of 18%.
Together, these two investments will directly benefit 37,190 producers, processors, and exporters and indirectly support 87,880 people, while significantly strengthening Rwanda's position in high-value horticultural exports to the Middle East, Europe, and beyond.
Resources
FAO's Hand-in-Hand Initiative
21/12/2023
The Hand-in-Hand (HIH) Initiative supports the implementation of nationally led, ambitious programmes to accelerate agrifood systems transformations...
In the Media
Contacts
For more information, please contact the Hand-in-Hand team