Across Rwanda, residents are increasingly frustrated by the continued rise in the prices of essential food items, despite reports indicating a decrease in domestic production prices. According to the National Institute of Statistics of Rwanda (NISR), domestic production prices dropped by 2.5% in June 2024 compared to the same period last year. However, this decrease has not been reflected in market prices, which surged by 4.9% during the first two months of 2024, largely driven by an increase in the costs of agricultural commodities, particularly staple crops.
Description: A line chart showing the price trends of agricultural commodities in Rwanda, comparing June 2023 to June 2024. This highlight the drop in domestic production prices (2.5% decrease) and the overall food price increase (4.9% surge) in the first two months of 2024.
Nationwide Impact of Price Increases
Throughout the country, from urban centers to rural areas, citizens have raised concerns about the rising costs of basic goods such as rice, sugar, cooking oil, and other food staples. Despite some agricultural products, like tea and coffee, seeing price reductions (with tea falling by 13.9% and coffee by 4.6%), food prices continue to strain household budgets. This disparity has led to widespread questions about why the cost of living remains high when some agricultural products are becoming more affordable.
“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 to bring these prices down,” said a concerned citizen from Kigali. Similar sentiments are echoed by residents in rural areas, where food prices have an even more direct impact on daily life.
Description: Infographic showing some regions where residents have expressed the most concern over rising food prices.
Economic Growth and Its Effect on Price Stability
John Rwangombwa, Governor of the National Bank of Rwanda, remains optimistic about the country’s economic outlook. He pointed to an 8.2% growth in the country’s GDP, which exceeds the 6.2% target set earlier. Rwangombwa emphasized that this positive economic performance would eventually help 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.
Despite this reassurance, many Rwandans are unconvinced. Local leaders and agricultural experts argue that to tackle the root causes of price inflation, a more direct solution lies in increasing domestic agricultural production to reduce reliance on imports.
Description: A comparative bar graph illustrating Rwanda’s GDP growth (8.2% in 2024) against the inflation of food prices in the same period (4.9% increase in early 2024). This show the disconnect between economic growth and price stabilization.
Government’s Push for Increased Agricultural Production
The Rwanda Agricultural and Animal Resources Development Board (RAARD) has set an ambitious target for the 2025A planting season, aiming to increase cultivated land by 10%. This expansion will bring the total cultivated area to 802,000 hectares, with the goal of producing 70% of the food needed by the Rwandan population. Local leaders are encouraging citizens to take advantage of uncultivated land and participate in farming initiatives.
“The government has created opportunities for citizens to grow their own food. By increasing the area under cultivation, we can reduce food scarcity and stabilize prices,” said a local leader from the Northern Province.
In addition to expanding cultivation, the government is promoting food processing as a means to add value to agricultural products and create economic opportunities for local communities. The RAARD is calling for the mobilization of citizens across the country to engage in both farming and food processing to ensure that Rwanda’s agricultural sector meets the growing demand for food.
Description: A graphic showing the area of land to be cultivated in the 2025A season, highlighting the 10% increase to 802,000 hectares. This illustrate the change in cultivated area over the years, with a focus on the projected increase.
Support for Farmers and Access to Resources
In both urban and rural areas, citizens have also called for more support in terms of farming equipment and access to resources. Many farmers, especially those in remote regions, lack the necessary tools and infrastructure to increase 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.”
Description: A visual showing the types of farming equipment most in demand (e.g., tractors, irrigation systems) and their current availability versus need.
The Way Forward for Rwanda’s Agricultural Sector
Rwanda’s agriculture sector continues to evolve, with expanding land cultivation and growing government support for farmers. While economic growth may eventually lead to price stabilization, addressing the immediate challenges posed by rising food prices requires a more direct focus on increasing agricultural production and reducing market dependency.
The government’s push for greater land use, combined with initiatives to support food processing and agricultural innovation, aims to address the long-term goal of reducing food prices and improving food security across the nation. As the 2025A planting season approaches, the hope is that increased agricultural output will help stabilize food prices and ease the burden on Rwandans who are struggling 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.
