Rwanda's Coffee Sector Reforms Has Positive Knock-On Effect On Academic Performance – CoffeeTalk

A team of researchers from the Africa Region’s Chief Economist’s Office at the World Bank conducted a study on the socio-economic impact of Rwanda’s coffee sector reforms, focusing on the human capital outcomes linked to the expansion of coffee mills. The study used data from over 1.5 million primary school students who took national exams between 2012 and 2019, analyzing the effects of early-life exposure to coffee mills on their academic performance.

The findings showed that early-life exposure to coffee mills positively influenced academic outcomes, with test scores of students exposed to coffee mills increasing by 0.09 standard deviations, equivalent to a 4% improvement compared to unexposed students. The benefits were evident across all subject areas, with particularly strong effects in non-STEM subjects such as English and social studies. The impact was more pronounced in rural areas, where economic constraints often limit educational opportunities.

Key pathways through which coffee mills improved educational outcomes included a significant boost to household incomes in communities near coffee mills, which translated into better living conditions and investments in children’s education. Child health also improved in coffee mill catchment areas, with reduced stunting rates and higher height-for-age scores among children. These health gains, known to influence cognitive development, likely contributed to enhanced academic performance. Additionally, increased household income allowed families to prioritize education, as evidenced by higher school attendance rates among children living near coffee mills.

The research underscores the transformative potential of agro-industrialization policies in low-income countries. Rwanda’s coffee sector reforms not only boosted export revenues but also created significant local economic benefits, including higher incomes and improved human capital. The findings highlight the importance of early-life conditions in shaping long-term socio-economic outcomes and suggest that targeted industrial policies can have far-reaching spillover effects.

The expansion of coffee mills in Rwanda offers a compelling example of how industrial policies can simultaneously enhance economic and social outcomes. By shifting from traditional to value-added coffee processing, Rwanda demonstrated that agro-industrialization can drive inclusive growth.

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