A new strategy on e-commerce in agriculture value chains could boost Rwanda’s export capacity according to agriculture experts.
The strategy was unveiled, last week, by The Food and Agriculture Organization of the United Nations (FAO) and Rwanda Development Board (RDB).
It seeks to strengthen promotion of online trading in agricultural products to enhance access to markets.
The six-year strategy " National E-commerce in Agriculture Value Chains Strategy” running from 2021 to 2026 builds on the existing digital rapid expansion, and the country’s efforts to promote innovation and use of ICT in boosting agricultural production and increasing the involvement of youth in the agricultural sector.
The Strategy was developed through the project "Support Local Supplier’s Capacity Development and Promotion of E-commerce for Agricultural Value Chains in Rwanda”, which also developed WebPages for 20 businesses to introduce them and build their capacities on the use of online marketing.
Diane Sayinzoga, Head of Special Economic Zones and Exports Department at RDB said that web pages created will facilitate the businesses to increase online presence.
"E-commerce is even more relevant during the period of the COVID-19 pandemic and future shocks. The E-commerce in Agriculture Value Chains will support small and medium enterprises to better access existing market opportunities without having to leave their respective places of operation. We still need collaboration from all partners in the promotion of E-commerce in Agriculture Value Chains in the country,” she said.
E-commerce in agriculture value chains is particularly still new and in its early growth.
The existing e-commerce instruments are e-soko+ for market price information system and e-portal for import and export products in agriculture.
According to Nomathemba Mhlanga, FAO Agribusiness Officer, "The E-commerce in agriculture will boost the capacity of SMEs in Rwanda to export and trade efficiently locally but most importantly will contribute to agribusiness development in the country. The businesses will be empowered to effectively use E-commerce as a tool to strengthen online trading services and products.”
The use of e-commerce is also expected to reduce post-harvest wastage through improved market efficiency, increasing financial inclusion, time and cost-saving, easy market access for inputs, efficient cash management, accountability and transparency, linkage between agricultural researchers, extension agents and farmers and thereby enhancing agricultural production and productivity.
Priority areas for the strategy
The newly developed e-commerce in agriculture value chains strategy will emphasize promotion and strengthening of national and international trade of agriculture products.
The areas of focus will include building the capacity of farmers’ cooperatives and agribusiness actors to use e-commerce platforms in online trading and raise awareness on the use of the E-commerce platforms in the agriculture value chains.
It also includes supporting the establishment and operationalizations of a reliable logistical system adapted to e-commerce in the agriculture value chains, and support the establishment of a conducive policy and legal framework for e-commerce in agriculture value chains.