Agricultural cooperatives in Rwanda play a vital role in boosting productivity and improving livelihoods, yet they continue to face challenges such as poor leadership, market access issues, and infrastructure gaps, according to a new parliamentary report. The report highlighted various forms of the contribution of cooperatives to development, including job creation, workforce development, and increased participation in national programmes such as community-based health insurance and Ejo Heza savings initiative. It also shed light on the key challenges hindering their growth. ALSO READ: How cooperatives are empowering communities The New Times looks at the key challenges facing cooperatives in the agriculture sector. 1. Lack of markets for their produce The partliamentary report presented to the Chamber of Deputies on February 24 mentions various examples of cooperatives struggling to find markets for their products. One such case is Coammu, a cooperative operating on 38 hectares of wetland spanning Gishamvu, Mukura, and Tumba sectors of Huye district. Despite signing contracts with potential buyers, the cooperative sells only a small portion of their produce, forcing its members to sell the remaining stock on their own. The report cites one cooperative of cassava farmers in Ruhango District, which reported that Kinazi Cassava Plant could not buy their entire production. Farmers can only sell half of their yield to the factory and must find other buyers for the rest. 2. Lack of collection facilities for produce Some cooperatives still struggle due to a lack proper collection facilities for their produce. This issue was observed in Gitambi Sector in Rusizi District and Rutunga Sector in Gasabo District. 3. Poor leadership and mismanagement Cases of poor leadership and financial mismanagement have been reported in some cooperatives. Leaders and accountants of some of these cooperative have been tried in courts of law for embezzlement and mismanagement. ALSO READ: Agricultural cooperative leaders urged to reconcile One such cooperative is IAKIB in Gicumbi District, which has accumulated debts exceeding Rwf1.1 billion and it appears unable to repay these debts, according to the report. 4. Shortage of organic fertilizers Tea farmers’ cooperatives have reported difficulties due to a shortage of organic fertilizers, which are not consistently available throughout the year, in addition to rising prices that have worsened the situation. This issue was particularly noted in the Twumba Sector in Karongi District and Giheke Sector in Rusizi District. There have been shortages of fertilizers sponsored by the National Agricultural Export Development Board (NAEB) in Kamonyi and Ngororero districts, where the supply was found to be insufficient. 5. Entrepreneurs failing to pay cooperatives Some entrepreneurs have taken products from cooperatives and have failed to pay for them. For example, Tuzamurane, a coffee farmers' cooperative in Rusizi District, lost Rwf90 million worth of coffee to an entrepreneur who failed to pay. Similar cases were reported in Gicumbi and Kamonyi districts, where entrepreneurs either delayed or failed to pay cooperatives after receiving their produce. ALSO READ: Officials explore ways to promote cooperatives 6. Poor infrastructure Many cooperatives face delays in transporting their produce to markets due to poorly maintained roads. This challenge particularly affects the timely delivery of perishable produce. 7. Damaged dams affecting rice and maize farming Cooperatives involved farming in wetlands, particularly for rice and maize, struggle with damaged irrigation dams. These cooperatives lack the capacity to restore the damaged infrastructure, which affects their productivity. The issue has been particularly noted in the Southern Province.
