Rwanda plans to start commercial processing of coffee as part of its value addition programme as demand peaks on regional and global markets.

This year, the government is investing in construction of a commercial coffee roasting, grinding and packaging plant in Gikondo, though the cost of the project is yet to be disclosed.

Currently, though the private sector is involved in processing coffee, it is still on small scale. The bulk of the coffee is exported to Mombasa for auction in raw form.

“We are still in the infant stages of procurement for the design plan. But we are starting the construction works this financial year,” said Dr Celestin Gatarahya, head of the coffee production division at the National Export Development Board.

He said demand for Rwandan coffee has been increasing on the global market.

The volume of coffee, this year, is projected to increase by 41 per cent though prices are expected to decline by 27 per cent due to weaker global demand.

Coffee exports performed poorly last year with the volume falling by 14.5 per cent, due to significant increase in prices globally — 55.5 per cent— however their value increased by 33 per cent. The exports fetched $74.6 million in 2011, up from $56.1 million in 2010.

The government also plans to increase investment in coffee washing stations from 199 washing stations across the country to 224 within the year.

“Washed coffee fetch more money than ordinary coffee so we intend to wash at least 8,000 tonnes of our total out and have at least 16,000 tonnes of ordinary coffee in 2012. These should be able to bring in more receipts than 2011,” said Dr Gatarahya.

In 2011, fully washed coffee was 4,175 tonnes as compared to 3,466 tonnes in 2010.