Coffee Production - INVESTMENT OPPORTUNITY - iDiasporan

Coffee Production

by Rwandan Development Board

Description

Invest in production, washing, roasting and packaging coffee to take advantage of Rwanda’s premium quality and specialty coffee markets in Europe and America.
 
 
The opportunity:
  • Area under coffee production will increase by 20,000 hectares between 2012 and 2017
  • A network of 199 Coffee Washing Stations have been established. If expansion targets are realised, 80-100 addi6onal sta6ons will need to be established to ensure capacity
  • Given that only 20-25% of Rwanda's coffee is fully washed there is huge untapped poten6al.
  • The market destinations are in Europe with major buyers including Armajaro and Starbucks.
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Investment Highlights

  • $7-8M in private investment is needed to establish 80-100 new Coffee Washing Centres over the next five years. Exis6ng high-performing stations show poten6al for 25-30% rates of return.
  • Government is inves6ng $17M to increase coffee yields over the next four years, and is establishing a $15M fund available to growers and processers of cash crops.
  • To cater for a growing domes6c and regional coffee market, a $3M investment in a 2000MT roasting facility could generate a sales turnover of $30M – an IRR of 28%.


    • With high elevation, rich soil and an ideal climate, Rwanda has ideal conditions for growing premium Arabica coffee.
    • The best Rwandan fully washed coffees command price premiums of more than 135 cents per pound over the global Arabica benchmark price.
    • Cost of producing high quality specialty coffee beans in Rwanda is amongst the lowest in the region.
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