Rwandans are lamenting over increased prices of very basic food items, as the earlier findings suggest that the prices for domestic production in the country have gone down. The National Institute of Statistics of Rwanda reported that in June 2024 the domestic production prices had decreased by 2.5% when compared to the previous year in June. However, this has been contrary to the trend in the market prices, which in the first two months of 2024 increased by 4.9%, thanks to the rise in prices of agricultural commodities, mainly staple crops.
Description: A line graph indicating the changes in the prices of agricultural products in the Republic of Rwanda from June 2023 to June 2024. This indicates to the fact that the decrease in domestic production prices has been 2.5%, while that of food prices has upped by 4.9% surge in the general food prices in the first two months of 2024.
Price Increase Impact – Nationwide
The residents have expressed grievances about the soaring prices of products especially in towns and even the rural areas where basic necessities like rice, sugar, cooking oil and the rest are found. Though some of the agricultural products like tea and coffee are cheaper by 13.9% and 4.6%, respectively, the prices of food are still high and a burden to households. This has created a difference that makes many question why the cost of living should still be high when some of these agricultural products are subsidized.
We don’t understand why food prices are still increasing. While some commodities are cheaper, we’re still struggling to afford the basics. We need the government to find ways of bringing these prices down,” said the concerned citizen in Kigali. In rural areas, where it directly relates to daily life, most people have similar sentiments.
Description: This is an infographic of some regions where residents have shown the most concern over rising food prices.
Economic Growth and Its Effect on Price Stability
John Rwangombwa, the Governor of the National Bank of Rwanda, remains optimistic about the country’s economic outlook. He indicated an 8.2% increase in the country’s GDP, a number well above the earlier target of 6.2%. Rwangombwa pinned his hopes on this good performance of the economy to ultimately stabilize prices. “Although market prices continue to fluctuate, the growth of our economy will ultimately help bring down prices in the long run,” he explained.
But despite this assurance, many Rwandans remain unconvinced. According to local leaders and agricultural experts, to address the very root of the price increase, there should be an increase in domestic agricultural production so as to reduce reliance on imports.
Description: A comparative bar graph showing the growth of Rwanda’s GDP, standing at 8.2% in 2024, against the inflation of foodstuffs within the same period-a 4.9% increase in early 2024-shows the disconnect between economic growth and price stabilization.
Government Push for Increased Agricultural Production
RAARDE came up with an ambitious target of increasing the cultivated land by 10 percent for the 2025A planting season. This will increase the total acres to 802,000 hectares and is expected to account for 70 percent of the food that the Rwandan population requires. Local leadership within the country urges its citizens to take advantage of the uncultivated land and participate in farming initiatives.
The government has created opportunities for people to grow their own food. “We can reduce food scarcity and stabilize prices if we increase the area under cultivation,” said a local leader from the Northern Province.
Apart from the widening of acreage for crop cultivation, there is also encouragement from the government for food processing as a value-addition means in agricultural produce to bring economic opportunities to local communities. RAARD calls for citizen mobilization across the country for food.
Description: This graph illustrates the land that should be put to cultivation in the 2025A season, showcasing the 10% increase to reach 802,000 hectares. This shows the change in the cultivated area over the years and has been presented as far as the projected increase is concerned.
Support for Farmers and Resource Accessibility
People in urban and rural settings have also demanded an increase in support in farming equipment and means of accessing services. Many farmers, particularly those who live in very remote areas, lack the farm tools and infrastructure needed to advance production. Without this support, many fear they will not be able to keep up with rising food prices, further exacerbating food insecurity.
“We need better farming equipment and more assistance in cultivating our land,” said a farmer from the Southern Province. “If the government doesn’t step in, it will be hard to cope with the rising costs of food.”
Illustration: An infographic showing the kind of farm machinery in highest demand-tractors, irrigation systems amongst others-and what is present against what is needed.
The future of Agriculture in Rwanda
Expansion in agriculture continues in Rwanda, with open land being cultivated and increasing government support for the farmers. Although the rising economic growth might eventually result in stable prices, an immediate response to the rising food prices needs a more direct approach towards agricultural production increase and dependency on the market reduction.
While the government is pushing for more land use, combined with initiatives that support food processing and agricultural innovation, this might help in achieving the long-term goal of reduction in food prices and improving food security across the nation. With the approach of the 2025A planting season, it is envisaged that increased agricultural output will stabilize food prices and lighten the burden on Rwandans who struggle to make ends meet.
Data Insights:
- NISR report (June 2024): Domestic production prices decreased by 2.5% compared to the previous year.
- 4.9% surge in overall food prices in early 2024 due to increases in agricultural commodity costs.
- Tea prices fell by 13.9%, and coffee prices dropped by 4.6%.
- Increase in cultivated land: RAARD aims to expand land under cultivation by 10% during the 2025A planting season, reaching 802,000 hectares.
