Posted on November, 25, 2024 at 08:34 am
The World Bank released a report last week that tracks Rwanda’s achievement under the National Strategy for Transformation (NST 1) and recommends actions that should be taken under NST 2.
In the report, one sticking highlight is clear: Rwanda’s domestic food demand is expected to double from $6.5 billion (approximately Rwf8.9 trillion) in 2020 to $13 billion (approximately Rwf17.7 trillion) by 2040.
Much of this expected increase in demand reflects a shift in consumption from a diet high in cereals and beans to one consisting of more livestock-sourced products, horticulture, and processed foods and beverages.
The projected increase in domestic food demand also reflects more meals consumed outside the home. This simply means more people will consume food at restaurants, cafes, food stalls, or other dining establishments other than food prepared and eaten at home.
Although the report highlights that the shifts in food consumption constitute an immense opportunity for increased jobs, it is also true that this presents an opportunity to the whole economy.
The projected increase in demand could benefit small to large scale farmers, transporters who source food supplies from farmlands, women-led businesses across very market in the country, agro processing industrialists, and exporters at large.
With this demand, small- and large-scale farmers will have reliable market for their produce, transporters will be guaranteed with business to transport agriculture supplies to markets, and agro-processing industries will have an opportunity to expand their production and introduce new products to the market. Not to mention exporters who stand a chance to cash in on rising demand.
It’s not a surprise that agriculture accounts for most jobs that employ Rwandans. The sector also plays a vital role in driving Rwanda’s economic productivity.
Yet, the revelations in this report show that to meet this demand, Rwanda will need to change ways for how agriculture activity is presently conducted.
Currently, the agriculture sector is dominated by smallholder farmers, mostly women, who grow on scattered pieces of land that do not yield much. At the same time, farmers use traditional techniques of farming that do not generate value to them and to the sector.
This must change; the government must be deliberate about putting in place mechanisms that will ensure agricultural productivity rises to meet the growing domestic food demand.
This could mean sensitizing smallholder farmers to consolidate their land parcels, encouraging large scale farmers to adopt latest technologies such as advanced irrigation systems and tools that monitor weather patterns.
It also means that the government should have clear policies that incentivise and naturally attract private investors who invest in large scale farming to invest in food producers.
Ultimately, the key will be to focus on growing crops in which Rwanda can be competitive in even when it comes to regional and international markets.
Source: The New Times