The government plans to offer 102,000 grafted macadamia seedlings under a new subsidy approach aimed at expanding cultivation and improving crop survival, according to the National Agricultural Export Development Board (NAEB).
According to Claude Bizimana, Chief Executive Officer of NAEB, the new model will provide seedlings to farmers with partial financial support from the government, which differs from the past failed fully subsidised models, he said.
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"For example, a farmer may pay Rwf1,000 for a seedling that costs Rwf4,000. This is meant to ensure they take responsibility for that seedling, as they will have invested in it,” he said.
Under the six-year project which began in 2024 that supports the expansion of macadamia plantation, the seedlings will be given to farmers in Rusizi, Nyamasheke, Karongi, and Rutsiro districts in the Western Province, and Rwamagana in the Eastern Province.
To ensure the maintenance, technical support will also be delivered in collaboration with professionals in macadamia cultivation.
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According to NAEB, farmers will be linked with companies that produce seedlings, be supportedthroughout the planting and maintenance process, as well as be linked to market linkages to ensure that what was subsidised becomes productive.
Farming incentives
Between 2011 and 2020, the Project for Rural Income through Exports (PRICE) helped introduce macadamia farming with different incentives, like providing free seedlings to encourage adoption.
After nearly a decade, Bizimana said the model had to evolve.
"You can’t keep giving away a commodity that holds potential to earn foreign exchange for more than ten years. We gave them out for free, but many were not cared for as they were given them for free without their investment, and only a few survived,” he said.
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In addition to distributing seedlings, beneficiary farmers will receive agricultural inputs, such as compost and mineral fertilizers, as well as technical support through Farmer Field Schools (FFS).
These schools aim to enhance practices across pre-production, production, and post-harvest stages. FFS sessions will cover key topics including farm layout, hole preparation, fertilizer application, pest control techniques, proper storage methods, and tree management.
Bizimana acknowledged that Rwanda remains a price taker on the global macadamia market. For that reason, he said, the country is focused on producing high-quality nuts rather than pursuing quantity alone, to ensure unique production.
The farmers have been calling for the irrigation subsidies, but the government has already extended support to smallholder farmers through subsidised irrigation schemes, covering up to 50 per cent of the cost for small-scale irrigation equipment under the Small-Scale Irrigation Technology (SSIT) project, he said.
However, he noted that macadamia is often grown by large-scale farmers, which presents a unique challenge in designing targeted support.
"Given Rwanda’s limited land, we are working with their association and cooperatives to meet and share the tips on farming in order to boost productivity even on small plots,” he added.
The interventions come as Rwanda plans to expand the area under macadamia cultivation from 605 hectares in the 2024-2025 fiscal year to 933 hectares by 2028-2029.
According to NAEB, macadamia cultivation in Rwanda is spread across 25 districts, with higher concentrations in the Eastern and Southern Provinces.
Current data shows approximately 1,156 farmers are cultivating around 289,824 macadamia trees, which equates to an estimated area of 1,420 hectares.
Macadamia export revenues have decreased over the years.
The revenue in 2019/2020 was $1,929,261, $2,102,908 in 2020/2021, $2,028,738 in 2021/2022, and $1,873,270 in 2022/2023, before declining further to $1,371,734 in 2023/2024.
The current key export markets are Vietnam, Japan, the US, Uzbekistan, and China.