Rwanda sees strong revenue from tea exports

Rwanda's tea exports have seen a significant boost in revenue in the first quarter of 2020, as reported by the National Agriculture Export Development Board. The country exported over 9,317 tons of processed tea valued at more than $27.6 million between January and March. In an exclusive interview with CNBC Africa, Cynthia Uwacu, the Export Market Development and Innovation Division Manager at the National Agriculture Export Development Board, shed light on the factors behind this success. Uwacu attributed the increase in revenue to a combination of factors such as favorable market prices, growth in export volumes, and consistent climatic conditions. She highlighted that Rwanda's primary grades have been fetching excellent prices in the international market, with no grades selling below $5 in the last six months. One significant factor contributing to the success of Rwanda's tea exports has been the favorable climatic conditions in the region. Uwacu emphasized that consistent rainfall in recent months has bolstered the growth of tea crops, leading to a 27% increase in export volumes compared to the previous year. The ample rainfall has been a key driver in ensuring optimal growth for tea plants, resulting in a bountiful harvest for the country. Moreover, the current global pandemic has also played a role in boosting Rwanda's tea exports. With disruptions in the supply chains of major tea-producing countries like India, the demand for Rwandan tea has surged, leading to an increase in prices. Uwacu noted that while the pandemic initially caused some challenges such as limited movement and reduced participation in auctions, the sector quickly adapted to ensure continuity in operations. Despite facing obstacles like border delays and logistical disruptions, Rwanda managed to sustain its tea export activities and meet the rising demand. In terms of revenue targets, Rwanda had set a goal of generating $102 million from tea exports in the fiscal year 2019-2020. Uwacu revealed that the country has already achieved revenues close to $80 million, indicating a strong performance in the sector. With an average quarterly revenue of $25-26 million, Rwanda is on track to either meet or come very close to its annual target, showcasing the resilience and growth potential of its tea industry. Discussing the operational changes necessitated by the current circumstances, Uwacu highlighted the implementation of stringent health and safety measures at the factory level. Adhering to guidelines from the Ministry of Health, tea factories have adopted various protocols to protect their staff and ensure business continuity. Measures such as mandatory testing for drivers and enhanced safety protocols have been put in place to safeguard workers and maintain the efficiency of tea production. Despite the challenges posed by the pandemic and evolving market dynamics, Rwanda's tea sector has demonstrated remarkable adaptability and resilience. The country's ability to capitalize on favorable weather conditions, navigate disruptions in the global supply chain, and implement proactive measures to safeguard operations has been pivotal in sustaining the growth of its tea exports. As Rwanda continues to make strides in the tea industry, leveraging its strengths and addressing challenges effectively, the future outlook for the sector appears promising, positioning the country as a key player in the global tea market.