Improving Rwanda’s competitive edge in the tea and coffee sectors

Rwanda has the right conditions and infrastructure to grow high-quality Arabica coffee and premium teas. Coffee and tea are important to the economy, contributing 9% of Rwanda’s export earnings and supporting over 375,000 farmers, their families and seasonal workers.

Rwanda’s National Agricultural Export Board (NAEB) and industry stakeholders are working to improve the quality and yields of both crops by expanding areas under cultivation and improving agricultural practices and access to inputs. However, this growth is being hampered by international competition and the negative effects of climate change, which are reducing profitability.

For the government, overcoming these challenges is an important opportunity to promote sustainable agricultural production while supporting livelihoods.

NAEB invited our advisory team to explore how its coffee and tea products could be more competitive in the international marketplace. Our work focused on how the country could increase export volumes, improve the competitiveness of its business and differentiate itself in the marketplace, while also improving the sustainability and climate resilience of its production practices.

Our report to NAEB suggested that distinguishing Rwandan tea and coffee as high quality and leading in sustainability and climate resilience could achieve this goal. The study identified four pillars for this suggested approach:

• Using differentiation strategies to ultimately achieve greater competitive advantage
• Improving business communication and relational capabilities; promoting value chain integration and visibility
• Developing a branding and communication strategy focused on product differentiation and positive sustainability outcomes for coffee and tea plantations
• Market development and promotion focused on premium and sustainable markets.

Best practices for sustainable tea and coffee farming

Millions of people around the world rely on the tea and coffee industry for their living, but many face countless sustainability challenges.

As part of our advisory work, we have looked at how countries are finding ways to address these challenges. By identifying successes in the main tea and coffee-producing regions, we can help other policymakers in developing countries who are trying to address similar challenges.

Read about our findings for the tea and coffee industry.