Rwanda plans to phase out the export of live animals to boost the trade in processed meat products.

The export of live animals, especially to the neighbouring Democratic Republic of Congo, has dominated this trade, but the government is rethinking the model after realising that exporting processed meat is more profitable.

“We are undertaking a study to understand why the export of live animals is preferred by our traders and what it will take for the government to turn around this industry,” said Francois Kanimba, Minister of Trade and Industry. “We, however, know that the export of fresh meat requires a strong logistics chains. Moreover, the live animals move for long distances once they cross into the DRC.”

Although exported in small quantities, processed meat earns the government a significant amount in revenue, and now the government is thinking of ways of growing the industry.

According to statistics from the Ministry of Trade and Industry, in 2014, the total value of meat exports was $7.7 million while in 2015, the value increased to $9.3 million. In the first six months of 2016, exports of processed meat fetched $7.5 million.

“At this rate, we may reach $10 million by the end of the year. That is why we want to invest in modern slaughterhouses and, although we already have some, especially in Rubavu District, there is room to do more to facilitate the move from live animal exports to the export of quality processed meat,” the minister said.

By phasing out live animal exports, the government also hopes to create new jobs and expand to new markets.

“The government is working with the private sector to establish a foreign multiservice centre — a logistics facility for small and medium enterprises from Rwanda exporting products to the DRC and Congo Brazzaville,” said Mr Kanimba.

The multiservice centre will contain cold room facilities as well as refrigerator trucks for traders who want to transport their products from one point to another, the minister said, adding that the facility should be up and running by 2017.

Rwanda is also working on packaging of the processed meat for export, which is currently done on a small scale by companies such as La Galette and Germany Butchery.

“Agro Processing Trust Corporation Ltd is finalising a modern meat processing and packaging plant that will help us better package our meat for export,” said Dr Christine Kanyandekwe, head of the Animal Resources Department at the Rwanda Agriculture Board.

Kigali is also planning to ban the export of raw hides and skins to encourage investors to put money into tanneries. Mr Kanimba said that he is in talks with exporters of hides and skins in the country, encouraging them to venture into tanneries.

READ: Absence of leather factories denies Rwanda millions in exports

According to the Export Commodities Highlights published by the National Agricultural Export Development Board (NAEB), some $ 7.4 million was generated from the export of raw hides and skins between July 2015 and June 2016. With the prospects of better meat processing infrastructure, the challenge is to have enough supply to satisfy the growing local and export markets.