Issues Affecting Small- and Medium-Scale Pineapple Processing Enterprises in Rwanda: A Cross-sectional Study

Abstract

Fruit processing small- and medium-scale enterprises (SMEs) play a vital role in the national economic development of Rwanda. Though they receive attention from the government, they still face numerous constraints that hinder their development. A cross-sectional study design was used to profile 16 small-scale and 11 medium-scale pineapple-processing enterprises in the country and assess the issues affecting them. From July to August in 2011, data was collected using a structured questionnaire and face-to-face interviews with enterprise managers. Results showed that most managers of these SMEs are male, married, within the age range of 36–40 years, have had formal education, and works 10 h per day. Most of these SMEs are located in the Eastern Province near pineapple production areas. The mean for the capital investment for small-scale processors was estimated at US$11,066 and for medium enterprises at US$805,000. Majority of small-scale enterprises had 10 employees or less while majority of the medium-scale enterprises had more than 10 employees, with both enterprises hiring mostly unskilled laborers working 8 h per day. Results reveal that the major constraints in pineapple-processing industry in Rwanda were the following: access to modern processing equipment and proper packaging material, access to raw materials, high cost of water and electricity, high transportation cost, and limited knowledge and skills of human resources. This article provides various recommendations on how SMEs can overcome these constraints and produce quality products that can penetrate the export market.