The purpose of this study is to assess the innovative nature of the agribusinesses, specifically a case study of the coffee industry in Rwanda. Innovation is one of the characteristics that distinguish an entrepreneurial venture from one that is non-entrepreneurial. In a situation where undifferentiated mass production is the defining feature of the global coffee industry, some Rwandan coffee producers have undertaken innovative actions in branding and niche marketing by developing specialty coffees. Though Rwandan farmers could in the past survive without innovation initiatives, seeing as they only competed in protected environments, with current globalization initiatives innovation is no longer a luxury but a necessity. Innovative practices do not only marginalize the volatile nature of costs faced by these producers but also increase their profit margins. The coffee industry has been transformed from a highly controlled, politicized industry to a liberalized sector that is quickly developing a prized niche product, (namely specialty coffee). This study highlights important recommendations that governments and NGOs supporting the agricultural sector in Rwanda, could apply to enhance innovation in the Rwandan agricultural sector in general, and the coffee industry in particular.