ISHEMA project drives modernisation of Rwandan agriculture through strategic TVET investment

Agriculture employs nearly 7 in 10 Rwandans, yet much of its value creation stops at the farm gate. The Improving skills for holistic employment in modern agriculture (ISHEMA) project is changing this dynamic by linking skills development, industrial infrastructure, and real market demand to drive Rwanda’s agro‑industrial transformation. ISHEMA strengthens agricultural value chains while modernising Technical and Vocational Education and Training (TVET). Its goal is simple and strategic: equip young people and women with job‑relevant skills and anchor training institutions in productive, income‑generating activities. Informed by an independent market study, this vision is now taking shape through targeted investments, priority value chains and specialised TVET Centres of Excellence.

The ISHEMA project is structured around four complementary pillars:

• skills development to prepare learners for jobs in agriculture, food processing, and animal health;
• innovation and integration through TVET Centres of Excellence aligned with market needs;
• industrial infrastructure with production units within TVET schools to support hands‑on learning and commercial production;
• value addition to reduce post‑harvest losses and improve product competitiveness.

To ensure sustainability, these investments are guided by an independent market research study focused on priority value chains such as dairy, meat, poultry, dry foods and horticulture. The analysis examined demand trends, import competition, and key bottlenecks across supply and distribution systems.

The study highlighted:

• rapidly rising imports: Rwanda’s agro‑food import bill increased from EUR 115.5 million in 2021 to an estimated EUR 367.9 million by 2025, driven largely by processed foods;
• a widening processing gap: despite strong agricultural production, most value addition still happens outside the country—raw products are exported and re‑imported at higher prices;
• high‑potential value chains: poultry, fish, horticulture and beverages show strong potential for local processing and import substitution;
• strong buyer demand: hotels, restaurants and retailers are actively seeking reliable local suppliers, with poultry and fish accounting for a significant share of institutional food demand. In addition, retailers show a growing appetite for quality “Made in Rwanda” products;
• key constraints to unlocking growth: post‑harvest losses, limited cold‑chain infrastructure, and price volatility remain the main barriers to scaling local agro‑processing.

While agricultural production is strong, limited local processing means that Rwanda continues to export raw products and import higher‑value processed foods. Demand for processed foods is rising quickly, driven by urbanisation and the expansion of the hospitality and retail sectors. Unlike the dairy sector, processed meat and poultry remain largely untapped, creating space for the emergence of new, quality‑driven national brands. By linking skills development with industrial production, ISHEMA is laying the foundation for competitive agro‑industries and stronger pathways to employment.

The resulting investment roadmap defines production facilities, capacities and priority products, while supporting ISHEMA’s vision of a circular agro‑industrial system in which the outputs of one site serve as inputs for another. Three TVET Centres of Excellence play complementary roles:

• Kinazi: fodder and livestock production, processed livestock products, and commercial animal feed;
• Mutobo: large‑scale crop and livestock production, and food processing to limit post‑harvest losses;
• Gitwe: staple crops, oilseeds, and milling operations.

Together, these centres connect training to real production environments and local markets. By aligning training, infrastructure, and market demand, ISHEMA is turning TVET institutions into engines of agro‑industrial growth—helping to build a skilled workforce for Rwanda’s agricultural future.

The Improving skills for holistic employment in modern agriculture (ISHEMA) project is funded by the Grand Duchy of Luxembourg, and implemented by the Rwanda TVET Board (RTB) and LuxDev, the Luxembourg Development Cooperation Agency.