Contribution of roasted coffee to the economy of Rwanda.

Abstract

This work is a result of a research conducted in Rwanda in Rwanda Coffee Authority(OCIR Café) and in Rwandan processing factories. The study was to know the contribution of roasted coffee to the Rwandan economy examining the benefits of roasted coffee to the processing factories, identifying the challenges faced by coffee roasters in Rwanda and determining the contribution of roasted coffee to the economy of Rwanda in terms of foreign exchange earnings. The study was performed under descriptive research design. Key data were gathered using document study and questionnaires administered to different services managers of the OCIR and managers of the coffee processing companies. All the population targeted was involved in the sample of the study because of its small number. This research proved that it’s benefit-able to export roasted coffee by numerous indications such as marginal benefit from export, growth of Rwandan coffee processors companies which roasts coffee for export, staff skills improvement in communication or opened to the international market, technical skills to roast, etc. It has also been illustrated in this research that roasted coffee for export in Rwanda contributes to the amelioration of the Rwandan trade and earnings in foreign exchange at an average of 6% during last 5 years. On the other hand, the financial facilities are not much favorable while roasting coffee for export requests a big number of investments. Mismanagement and lack of knowledge to export is also an issue to be aware of before roast for export because from this research findings, there are some dark areas in extraneous costs and information about foreign coffee market. The Rwandan government should provide enough information about the international market and make diplomatic negotiations so that the investors in that area won’t be afraid to participate.