Paving The Path To A Sustainable Food System? Examining Circular Business Model Innovation In Rwanda’s Agri-Food Sector

Abstract

African economies are susceptible to global food market shocks and price volatility. Incorporating circular and regenerative strategies into domestic agricultural production and export markets has been identified as a possible solution to improve resilience and market competitiveness. However, lessons from circular innovations are limited to examples from advanced economies, focusing mainly on industrial value chains. In particular, circularity in agribusinesses remains an underexplored topic in emerging and developing economies. This research addresses this gap by assessing various circular business model innovations observed in agribusinesses in Rwanda. The study employed a two-phase mixed-methods design. In the first phase, semi-structured interviews were conducted with agribusiness firms and a business association to examine their knowledge, attitudes, and practices regarding circular business models. In the second phase, a roundtable discussion involving a broader set of agri-food sector stakeholders was convened to validate and further contextualize the findings. Key findings indicated that current circular practices are predominantly centered on reusing, repairing, and repurposing materials, and regenerating soil fertility. Key challenges include low consumer awareness and limited demand for circular products and services, stringent export requirements for packaging materials, and the lack of coordinated policies to support integrated circular initiatives. More concerted industry coordination, leveraging the existing business hubs and incubator networks, and collaboration with universities could help build beyond the international consortium efforts in funding circular economy research and innovation.

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