Rwanda generates its highest revenue from roasted coffee bean export to the United States of America, worth $77 000. This comes barely a month after the East African country’s coffee industry’s move to penetrate international market.
According to the country’s National Agricultural Export Development Board (NAEB), this is the highest shipment from Rwanda. Adding that roasted coffee shipment generates more revenue compared to washed green coffee.
Comparing roasted coffee and green coffee, the Sales and Marketing Manager at Rwanda farmers Coffee Company (RFCC), Eric Rukwaya said that if the exports were green coffee, it would have had a value US$42,000 (Rwf35 000 000) compared to U$77 000 (Rwf66, 177 000) generated.
The coffee trade between USA and Rwanda that led to such high returns was facilitated by other trading agreements like the ‘beyond fair-trade’ business model (which has been pivotal for the coffee farmers) between the two countries. The two countries seek to boost their trading interactions more effective and efficient.
In 2012, United States and Rwanda entered a Bilateral Investment Treaty (BIT). Negotiations toward the BIT were launched in 2007 under the 2006 United States-Rwanda Trade and Investment Framework Agreement (TIFA).
As at 2016, Rwanda was United States 165th largest goods trading partner with $100 million in total (two way) goods. Goods exports to Rwanda totaled $75 million; goods imports from Rwanda totaled $26 million.
Four and half tonnes of coffee worth US$36 000 were exported to different international markets, including Germany and South Korea in 2017 and this year, the country plans to export a total of 40 tonnes which is expected to generate a total of US$ 320 000 (Rwf 273 600 000).
With over 10 tonnes of exported roasted coffee beans to the United States, Rwanda hopes to produce about to 40 tonnes that would generate about $320 000 for the East African country.