Can Rwanda’s banana wine be competitive regionally?
Banana wine may not that popular in the region, but it is the best-selling product in Rwanda, and there seems to be deliberate efforts by the government to prop up this nascent industry. The Director General of the National Industrial Research and Development Agency, Christian Birame spoke with CNBC Africa’s Julius Bizimungu for more.
Wed, 21 Apr 2021 19:20:03 GMT
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AI Generated Summary
- The government's deliberate efforts to prop up the banana wine industry by introducing new technologies and automation processes
- The importance of quality standards and certifications in enhancing Rwanda's competitiveness in the global beverage market
- The potential opportunities presented by the African Continental Free Trade Area (AfCFTA) for Rwanda's banana wine sector to expand its market reach
Rwanda, a country known for its scenic beauty and vibrant culture, is also making waves in the beverage industry with its banana wine production. Despite banana wine not being a popular choice in the region, it stands as the best-selling product in Rwanda. The government has been actively supporting and nurturing this nascent industry to ensure its growth and competitiveness. In a recent interview with CNBC Africa, the Director General of the National Industrial Research and Development Agency, Dr. Christian Viramey, shed light on the country's vision and efforts to propel the banana wine sector. With an annual production of 2.5 million metric tons of bananas, predominantly in the eastern region of the country, Rwanda has approximately 8 million people engaged in the production of banana wine and beer. Out of these, 1.4 million are smallholder banana growers whose livelihoods depend on this industry. Dr. Viramey highlighted the government's ambition to introduce new technologies that would facilitate better market access and industrial processing for these farmers. The push for automation and technological advancement in banana wine production has been a key focus, with only 1% of industries utilizing automated processes in 2016. The agency has conducted tech audits to identify the specific needs of the industry and match them with suitable international equipment. By providing technical assistance and facilitating technology acquisition, several companies have been able to enhance their production processes. The introduction of community processing centers like the Rwana-Gona Banana CPC has further boosted the sector's growth, with an increase in private investments surpassing a billion Ronda francs. Dr. Viramey emphasized the importance of ensuring quality standards and certifications to improve Rwanda's competitiveness in both regional and international markets. Collaborating with standard bodies for product testing and certification is crucial to gaining consumer trust and meeting global standards. He expressed confidence in Rwanda's ability to compete on a global scale once their products are certified and acknowledged by international markets. The African Continental Free Trade Area (AfCFTA) presents a promising opportunity for Rwanda's banana wine industry. With the regional market opening up, the sector is poised to tap into new markets and expand its reach beyond national borders. By adhering to stringent quality controls and certifications, Rwandan banana wine stands to gain acceptance and recognition in the broader African market space, paving the way for increased exports and economic growth.