Contribution of Roasted Coffee to the Economy of Rwanda.

ABSTRACT This work is a result of a research conducted in Rwanda in Rwanda Coffee Authority (OCIR Café) and in Rwandan processing factories. The study was to know the contribution of roasted coffee to the Rwandan economy examining the benefits of roasted coffee to the processing factories, identifying the challenges faced by coffee roasters in Rwanda and determining the contribution of roasted coffee to the economy of Rwanda in terms of foreign exchange earnings. The study was performed under descriptive research design. Key data were gathered using document study and questionnaires administered to different services managers of the OCIR and managers of the coffee processing companies. All the population targeted was involved in the sample of the study because of its small number. This research proved that it’s benefitable to export roasted coffee by numerous indications such as marginal benefit from export, growth of Rwandan coffee processors companies which roasts coffee for export, staff skills improvement in communication or opened to the international market, technical skills to roast, etc. It has also been illustrated in this research that roasted coffee for export in Rwanda contributes to the amelioration of the Rwandan trade and earnings in foreign exchange at an average of 6% during last 5 years. On the other hand, the financial facilities are not much favourable while roasting coffee for export requests a big number of investments. Mismanagement and lack of knowledge to export is also an issue to be aware of before roast for export because from this research findings, there are some dark areas in extraneous costs and information about foreign coffee market. The Rwandan government should provide enough information about the international market and make diplomatic negotiations so that the investors in that area won’t be afraid to participate.

TABLE OF CONTENTS

Chapter Page

ONE THE PROBLEM AND ITS SCOPE 1

Background of the Study 1

Statement of the Problem 3

Purpose of the Study 4

Research objectives 5

General Objectives 5

Specific Objectives 5

Research Questions 5

Scope 5

Significance of the study 6

Operational definitions of key terms 6

TWO REVIEW OF RELATED LITERATURE 9

Introduction 9

Concepts, Opinions, Ideas and perspectives views

from authors/experts 9

Project management overview 10

Project vs. product management 11

Costs of establishing a small roasting coffee project in Rwanda 11

History of coffee 12

Coffee processing 13

Coffee pulping 14

Coffee fermentation 14

Coffee drying 15

Washing process for Arabica coffee used in Rwanda 16

Coffee Roasting 18

The quality of roasted coffee 18

The roasted coffee quality standards 18

Coffee commercialisation 20

Coffee fair trade 21

Coffee market and pricing 22

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Coffee export 24

THREE RESEARCH DESIGN AND METHODOLOGY 25

Research design 25

Research population 25

Sample size 25

Sampling procedure 26

Research instruments 26

Questionnaires 26

Interview 26

Documentary sources 27

Validity and reliability of the instrument 28

Data analysis 28

Ethical considerations 29

FOUR PRESENTATION, ANALYSIS AND INTERPRETATION

OF FINDINGS 30

The coffee processors’ views on the challenges faced by their

companies to roast coffee for export 31

The contribution of roasted coffee to the economy of Rwanda

in terms of foreign exchange earnings 35

Contribution of roasted coffee to the trade balance in Rwanda 36

Ideas, innovations and programs that will enhance

coffee roasting in Rwanda 39

FIVE FINDINGS, CONCLUSION AND RECOMMANDATIONS 41

Conclusion 42

Recommendations 42

Area for further research 42

REFERENCES 44

APPENDIX A: TIME FRAME 1

Appendix B: Budget 2

APPENDIX C: QUESTIONNAIRES 3

CURICULUM VITEA 4