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									                    REPUBLIC OF RWANDA
      MINISTRY OF AGRICULTURE AND ANIMAL RESOURCES




           PO Box 621- Kigali; Tel/Fax: 584644-585008




STRATEGIC PLAN FOR AGRICULTURAL TRANSFORMATION IN RWANDA


                        Main Document
                      Kigali, October 2004




                      Kigali, October 2004
TABLE OF CONTENTS

ACCRONYMS AND ABREVIATIONS ............................................................................................. iv
EXECUTIVE SUMMARY ................................................................................................................. vi
PART ONE:           OVERVIEW ........................................................................................................... 1
I.      GENERAL INTRODUCTION .................................................................................................. 1
    1.1.     Justification of the Strategic Plan for Agricultural Transformation .................................. 1
    1.2.     Methodology .................................................................................................................... 1
II.     STRATEGIC AND INSTITUTIONAL FRAMEWORK OF THE SPAT ..................................... 2
    2.1      International and Regional context .................................................................................. 2
    2.2.     Political, Economic and Social Context. .......................................................................... 3
    2.3.     Rwanda Experience in Agricultural planning and Development ..................................... 5
    2.4.     Decentralisation and Community Development Plans .................................................... 6
    2.5.     Commitment to create new articulations in the development process. ........................... 6
    2.6.     The place of SPAT in the national planning system. ...................................................... 7
    3.1.     General Profile ................................................................................................................ 9
        3.1.1.      Overview on the agricultural sector ....................................................................... 9
        3.1.2.      Typology and characteristics of agricultural farms ................................................ 9
        3.1.3.      Sector institutions ................................................................................................ 10
    3.2.     Specific characteristics .................................................................................................. 12
        3.2.1.      Poverty in rural areas .......................................................................................... 12
        3.2.2       Food and Nutrition situation ................................................................................. 13
        3.2.3.      Land and labour productivity ............................................................................... 14
        3.2.4.      The role of women in agriculture ......................................................................... 15
        3.2.5.      Peasants without land ......................................................................................... 16
        3.2.6       The youth and their future in agriculture .............................................................. 16
IV. SUB-SECTOR ANALYSIS .................................................................................................... 16
    4.1.     Natural resources management and water and soil conservation ................................ 16
        4.1.1.      Situation of the sub sector of natural resources management ............................ 16
        4.1.2.      Constraints........................................................................................................... 17
        4.1.3.      Potentialities ........................................................................................................ 18
    4.2.     Crop production and commodity chains ........................................................................ 18
        4.2.1       Situation of the sub-sector of crop production commodity chains ....................... 18
        4.2.2       Constraints........................................................................................................... 21
        4.2.3       Opportunities ....................................................................................................... 22
    4.3.     Animal production and commodity chains. .................................................................... 22
        4.3.1       Situation of the livestock sub sector .................................................................... 22
        4.3.2.      Constraints in the Livestock Sub-Sector ............................................................. 22
        4.3.3.      Potentialities ........................................................................................................ 23
    4.4.     Farmers Organisations and Service to producers. ....................................................... 23
    4.5.     Agribusiness, promotion of commodity chains, competitiveness, processing and access
             to markets (agribusiness) .............................................................................................. 24
        4.5.1       Situation in the area of agro-business and promotion of commodity chains. ...... 24
        4.5.2       Constraints in the area of agro-business and promotion of commodity chains. . 24
        4.5.3.      Potentialities in the area of agribusiness and promotion of commodity chains ... 25
    4.6.     Support infrastructure .................................................................................................... 25
    4.7.     Legal and Regulatory Framework ................................................................................. 27
    4.8.     Financing , coordination and monitoring evaluation of the agricultural sector .............. 28
V. ANALYSIS OF CONSULTATIONS AT GRASSROOTS LEVEL .......................................... 30
    5.1.     Objectives, Methodology and general organisation of grassroots of consultations ...... 30
    5.2.     Constraints and problems raised .................................................................................. 30
    5.3.     Priority commodities ...................................................................................................... 31
    5.4.     Priority axes for the transformation of agriculture at local level. ................................... 31
    5.5.     Towards the Implementation of districts agricultural development plans ..................... 32
PART TWO: STRATEGIES, PRIORITY PROGRAMMES AND INTERACTION WITH SECTORS
FOR SUPPORT TO AGRICULTURAL DEVELOPMENT. ............................................................ 33


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VI. STRATEGIC PLAN FOR AGRICULTURAL TRANSFORMATION (SPAT) ......................... 33
  6.1.     Challenges..................................................................................................................... 33
  6.2.     Mission of the Strategic Plan ......................................................................................... 33
  6.3.     Objectives of the SPAT ................................................................................................. 33
  6.4.     Guiding principles .......................................................................................................... 34
  6.5.     Strategic axes ................................................................................................................ 34
      6.5.1.      Diversification and intensification of crop, animal and aquatic production. ......... 35
      6.5.2.      Diversification sources of income and employment for rural populations ........... 35
      6.5.3.      Productions between production and the market and integration of agricultural
                  economy in the national and regional economy. ................................................. 35
      6.5.4.      Sustainable management of natural resources particularly water and soils. ...... 36
      6.5.5.      Organization; mobilization, strengthening capacities of producers and
                  professional organizations. .................................................................................. 36
      6.5.6.      Strengthening capacities in providers of services, privatisation and promotion the
                  private sector. ...................................................................................................... 36
      6.5.7.      Creation of institutional framework conducive for the professionalisation of
                  producers and transformation of Rwandan agriculture. ...................................... 36
      6.5.8.      Creation of conducive environment for productive investment and development of
                  entrepreneurship and employment in agro-business .......................................... 37
      6.5.9.      Review of the role of MINAGRI and restructuring of its actions through a sector
                  program approach within the decentralization framework. .................................. 37
      6.5.10.     Promotion of gender approach and reduction of vulnerability of the
                  disadvantaged groups. ........................................................................................ 37
VII. PRIORITY PROGRAMMES AND EXPECTED OUTPUTS .................................................. 38
  7.1.     Intensification and development of sustainable production systems ............................ 38
      7.1.1.      Sustainable management of natural resources and conservation of water and of
                  soils. ..................................................................................................................... 38
      7.1.2.      Development of integrated livestock systems, agro-sylvo-pastoral production and
                  promotion of specialized intensive animal husbandry ......................................... 39
      7.1.3.      Marshland development ...................................................................................... 41
      7.1.4       Irrigation development ......................................................................................... 41
      7.1.5.      Supply and utilization of agricultural inputs. ........................................................ 42
      7.1.6.      Food security, management of risks and of vulnerability. ................................... 42
  7.2.     Support to professionalisation of producers .................................................................. 43
      7.2.1.      Promotion of farmers organisations and strengthening of producers capacities 43
      7.2.2.      Reform of proximity services to producers and rural innovation ......................... 45
      7.2.3       Promotion of Research for Agriculture and Livestock Development ................... 45
      7.2.4       Rural financial systems and agriculture credit development ............................... 46
  7.3.     Promotion of commodity chains horticulture and development of agribusiness ........... 47
      7.3.1       Promotion and development of commodity chains and horticulture .................... 47
      7.3.2       Transformation and competitiveness of agricultural products ............................. 51
      7.3.3.      Rural infrastructures for support to producers ..................................................... 52
      7.3.4       Creation of a conducive business environment and enterprise promotion ......... 52
  7.4.     Institutional development............................................................................................... 53
      7.4.1       The legal and regulatory framework .................................................................... 53
      7.4.2       Reforms and institutional support to public services ........................................... 53
      7.4.3       Coordination and Monitoring and Evaluation of the agricultural sector ............... 53
VIII. CONTRIBUTION OF SUPPORT SECTORS TO AGRICULTURAL DEVELOPMENT ........ 54
  8.1.     Governance and local development .............................................................................. 54
  8.2.     Environment, water and land security ........................................................................... 54
  8.3.     Education and scientific research ................................................................................. 54
  8.4.     Commerce, Industry and handicrafts ............................................................................ 55
  8.5.     Health and social protection .......................................................................................... 56
  8.6.     Infrastructure of transport and communication (ICT) .................................................... 56
  8.7.     Financial sector ............................................................................................................. 56
PART THREE:           ACTION PLAN AND INDICATIVE FINANCING PLAN ................................... 57



                                                                                                                                               ii
IX LOGICAL FRAMEWORK AND ACTION PLAN .................................................................... 57
  9.1.    Content of the action plan ............................................................................................. 57
  9.2.    Implementation modalities ............................................................................................. 57
     9.2.1      Coherence and articulation challenges ............................................................... 57
     9.2.2      Elaboration of operational programmes and investment programmes ............... 60
     9.2.3      Elaboration of sub-sector policies and strategies ................................................ 60
     9.2.4      Establishment of a mechanism and system for monitoring/evaluation ............... 60
     9.2.5      Next steps: Elaboration of MTEF, macro-economic and financial framework .... 60
     9.2.6.     Search for harmony in multi-stakeholder environment ........................................ 60
     9.2.7.     Definition of the role of different actors ................................................................ 63
X. SPAT INDICATIVE FINANCING PLAN ................................................................................ 66
  10.1    Introduction .................................................................................................................... 66
  10.2. Proposals of Districts ..................................................................................................... 66
  10.3. SPAT budget estimates................................................................................................. 67
  10.4. Available resources ....................................................................................................... 68
  10.5. Financial deficits ............................................................................................................ 68
  10.6. Assumptions for the SPAT financing ............................................................................. 68
BIBLIOGRAPHY ............................................................................................................................ 70
PART FOUR: APPENDICES AND ANNEXES .............................................................................. 72
APPENDIX I. LOGICAL FRAMEWORK OF THE STRATEGIC PLAN ......................................... 73
APPENDIX II: PLAN OF ACTION ................................................................................................. 75
APPENDIX III: STRATEGIC PLAN ELABORATION PROCESS .................................................. 93
APPENDIX IV. COLLABORATION NETWORKS AND MUTUAL PERCEPTIONS (CASE OF
ACTORS IN MARACUJA COMMODITY CHAIN) ......................................................................... 96
APPENDIX V: PROBLEMS RAISED DURING THE GRASSROOTS CONSULTATIONS ........... 97
APPENDIX VI: PRIORITY SPECIALITIES OF THE DISTRICTS IN KIGALI-NGALI, KIBUYE AND
GIKONGORO PROVINCES .......................................................................................................... 99
APPENDIX VII: TABLES ABOUT THE FUNDING INDICATIVE PLAN ...................................... 101
APPENDIX VIII: FARMERS’ ORGANIZATIONS AND PROXIMITY SERVICES TO PRODUCERS
     107
APPENDIX IX: SOME PROJECTIONS REGARDING EXPECTED OUTPUTS ......................... 111
APPENDIX X. REPORT OF THE VALIDATION WORKSHOP OF THE STRATEGIC PLAN FOR
AGRICULTURAL TRANSFORMATION ...................................................................................... 112




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ACCRONYMS AND ABREVIATIONS

NPA           : NON-PROFIT ASSOCIATION
ASZ           : AGRO-SYLVO ZOOTECHNIC
ADB           : AFRICAN DEVELOPMENT BANK
BNR           : NATIONAL BANK OF RWANDA
BOBP          :
BRD           : RWANDA DEVELOPMENT BANK
GC            : GRASSROOT COMMUNITY
CDC           : COMMUNITY DEVELOPMENT COMMITTEE
CDMT                 : MEDIUM TERM SPENDIRY FRAMEWORK
WSC           : WATER AND SOIL CONSERVATION
NAIC          : NATIONAL ARTIFICIAL INSAMINATION CENTRE
CNR           :
SCC           : SAVINGS AND CREDIT COOPERATIVE
COOPEDU       : DUTERIMBERE COOPERATIVE
CRS           : CATHOLIC RELIEF SERVICE
CSC           : COOPERATIVES SERVICE CENTRE
BTC           : BELGIAN TECHNICAL COOPERATION
DFID          : DEPARTMENT FOR INTERNATIONAL DEVELOPMENT
DRSA          : REGIONAL DIRECTORATE FOR AGRICULTURAL SERVICES
PRSP          : POVERTY REDUCTION STRATEGIC PAPER
FAO           : FOOD AND AGRICULTURE ORGANISATION
CDF           : COMMUNITY DEVELOPMENT FUND
IFAD          : INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT
RWF           : RWANDA FRANC ( 1 DOLLAR US = 580 FRW)
GECAD         : GROUP D’EXPERTISE, DE CONSEIL ET D”APPUI AU DEVELOPPEMENT
HIMO          : HIGH INTENSITY MANPOWER
MFI           : MICRO FINANCE INSTITUTION
ISAR          : RWANDA INSTITUTE OF AGRICULTURAL SCIENCE
KG Kg         : Kilogramme
LAE           : ANTI EROSION FIGHT
MdFRW         : BILLION RWANDAN FRANCS
MIGEPROFE            : MINISTRY OF GENDER AND FAMILY PROMOTION
MINAGRI       : MINISTRY OF AGRICULTURE
MINALOC       : MINISTRY OF LOCAL GOVERNMENT
MININFRA      : MINISTRY FOR INFRASTRUCTURE
MiosFRW       : MILLION RWANDAN FRANCS
MTEF          : MEDIUM TERM EXPENDITURE FRAMWORK
NEPAD                : NEW PARTNERSHIP FOR AFRICAN DEVELOPMENT
OC            : COMMUNITY ORGANISATION
OCIR-CAFÉ     : OFFICE FOR RWANDA INDUSTRIAL CROPS-COFFEE SEATOR
OCIR-THE      : OFFICE FOR RWANDA INDUSTRIAL CROPS-TEA SEATOR
NGO           : NON-GOVERNMENTAL ORGANISATION
PO            : PROFESSIONAL ORGANISATION
OPS           : PROFESSIONAL ORGANISATION OR PRODUCERS ORGANISATION
FERWATHE      : RWANDA TEA FEDERATION
NAP           : NATIONAL AGRICULTURAL POLICY
CDP           : COMMUNITY DEVELOPMENT PLAN
PDDDAA        : DETAILED PROGRAMME FOR THE DEVELOPMENT OF AFRICAN
AGRICULTURE

GNDP               : GROSS NATIONAL DOMESTIC PRODUCT
SME           : SMALL SCALE AND MEDIUM ENTERPRISES


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SMI        : SMALL SCALE AND MEDIUM INDUSTRIES
PRP        : POVERTY REDUCTION PROGRAMME
RIF        : RURAL INVESTMENT FACILITY
RNE        : NATURAL AND ENVIRONMENTAL RESOURCES
RSSP       : RURAL SECTOR SUPPORT PROJECT
M&E        : FOLLOW-UP AND EVALUATION
ADS        : AGRICULTURAL DEVELOPMENT STRATEGY
AIDS       : ACQUIRED IMMUNITY DEFICIENCY SYNDROME
NIS        : NATIONAL INVESTMENT STRATEGY
SOPYRWA    : RWANDA PYRETHRUM COMPANY
SORWATHE         : RWANDA THEA COMPANY
SORWATOM         : RWANDAN COMPANY FOR TOMATO PRODUCTION
SPSS       : STATISTICAL PACKAGE FOR SOCIAL SCIENCES
PRS        : POVERTY REDUCTION STRATEGY
SWAP             : SECTORWIDE APPROACH
UBPR       : UNIONOF RWANDAN PEOPLES BANKS
NUR        : NATIONAL UNIVERSITY OF RWANDA
USD        : UNITED STATES DOLLAR




                                                           v
                                      EXECUTIVE SUMMARY

1. In the framework of the implementation of the 2020 vision and the Poverty Reduction
     Strategic Plan, the Government of Rwanda has chosen to make rural development and
     agricultural transformation, to spearhead the embarking on a new era of a quick and
     sustainable development. The growth rate that assigned to this sector is of 5 to 8% so as
     to reach its expected objectives.

2. In the present context, this perspective confers to the agriculture sector a heavy mission
     whose realization requires deep changes in the conception and in the implementation
     modalities as well as in the roles and responsibilities of different actors.

3. In full conformity with the national plan for elaboration of sector strategies, the Ministry of
     Agriculture and Animal resources has elaborated the agricultural policy and strategy
     documents within the spirit of these dynamics of change.

4. The exercise was conducted in two phases: (i) during the first phase, the agricultural policy
    documents were elaborated on the basis of broad consultation with all partners .(ii) In the
    second phase, MINAGRI initiated a grassroots consultation process, concurrently with
    thematic analyses, which were conducted to define the agricultural strategy, sub-sector
    strategies, priority programmes and an action plan 2005-2008.

5. On the conceptual plan, the exercise introduces two innovations. (i) For the very first time
    in the history of Rwanda, a participative planning approach individually associating 106
    country districts has been implemented for the elaboration of the agriculture strategy.
    This consultation happened to associate beneficiaries to meditation, to put together their
    points of view and identify their needs to be integrated in the sectional strategy as well as
    in the hierarchy of actions to undertake. (iii) The elaboration of a data base on the
    beneficiaries needs lays the foundation for both an institutional memory and a
    collaboration platform; it allows to make preoccupations of beneficiaries and grassroots
    communities the permanent focal point for the actions in the agricultural sector

6. More than a simple appellation and far from the methodological innovation described
    above, the Strategic Plan for Agricultural Transformation in Rwanda, clearly shows the
    concern to bring innovations within the sector and in a sustainable manner, the dynamics
    of change leading towards modernization.

7. On the content level, the innovation of SPAT, as compared to policies and strategies of the
    past, is based on voluntaristic stimulation and incentives for the production systems
    towards regional specialization, producer’s professionalism, commodity chains and the
    market-orientation.

8. The voluntaristic eagerness of agricultural households to move away from subsistence
    economy to a market economy is coupled, at the same time with accompanying
    measures, which allow anchoring agricultural production within a market economy. In this
    new environment, the producer is closely linked to markets both upstream and
    downstream of production, thereby taking into account the probable chocks that may
    affect vulnerable zones and groups in the country with regard to food security.

9. The present report is divided into four parts. In the first part, the document describes the
    framework and the current context within which the sector is developing and presents a
    diagnostic analysis of the sector, as well as preliminary results from grassroots
    consultations. In the second part, the document presents the SPAT’s challenges, its
    mission, its objectives, its key principles and strategic axes. Then, the analysis presents
    the four priority programs as well as actions that are expected from support sectors to



                                                                                                vi
    agricultural production. The third part deals with the action plan and the indicative
    financing plan. The fourth part includes appendices, description of methodological
    aspects, the logical framework and technical details.

10. With regard to methodological and implementation modalities, the innovation lies in the
    definition and recourse to a concrete step of participation, giving population responsibility
    and ownership and decentralization in the process of planning, monitoring and
    evaluation, integrating modern tools of information and communication technologies.

11. The principal clear-cut elements derived from the analyses and the agricultural sector
    diagnosis (first part) show that the challenge of transformation and modernization is
    huge.

12. The sector has 1,4 millions households. These have an average of 0,76 ha of land, which
    is subjected to an advanced degradation process due to intensive erosion which leads to
    soil losses estimated at 14 millions tonnes annually.

13. The recourse of the current production systems to traditional production techniques in
    utilisation of the resources of soil, water, labour and capital and the low level of use of
    modern inputs leads to very poor performances. The coverage rate for food needs from
    production is estimated at around 87% for calories; 70% for proteins and 22% for lipids.
    The infant malnutrition rate that found out in 2002 was 24%. In some provinces such as
    Gikongoro, Kibuye and Butare, the malnutrition rate reaches 40 to 50%. The levels of soil
    productivity and of labour are very low. In 2002, value productivities are estimated at an
    average of 235,000 Rwf per cultivated hectare and between 78,000 and 117,000 Rwf per
    person and per year; respectively representing 408 USD/ha per year and between 136
    and 204 USD per person per year.

14. It is in within these conditions that the mission of the strategic plan for agricultural
    transformation situated. This mission is derived from upstream orientations (Vision 2020,
    PRSP) and aims at ensuring prosperity and sustainable and improved living conditions
    for the rural populations in a modernized and organized agriculture.

15. The overall objective of the sector is to contribute, in a sustainable way, to poverty
    reduction and to support Rwanda economic growth through increase of productivities of
    production factors, maximum production development, revenues opportunities
    diversification, environmental and natural resources protection. The agricultural sources
    for agricultural growth will be of two types: those which are linked to export potential
    within the commodity chains and those which are related to internal market development,
    essentially the cereal commodity chains (rice, maize), milk, meat and vegetable crops.

16. The SPAT is based on a series of guiding principles. (i) it is in the first place a
    participatory and pro-poor strategy. This option results from the fact that the majority of
    the population is rural, lives on agriculture and it is within this sector that we find the
    majority of poor people. It makes beneficiaries and their communities be represented at
    all levels. (ii) the strategy is progressive, flexible and dynamic. One has to be aware that
    the new voluntaristic vision of agricultural development engages populations towards new
    destinies and that some risks may be associated with this process along this road. The
    strategy is conceived in such a way that enables necessary adjustments and to take into
    account possible circumstantial changes (iii) the strategy is based on the demand-driven
    approach and on producers’ motivation This is to take into account producers’ negotiated
    free choices; public administrations that intervene in the orientation by putting in place
    appropriate motivation mechanisms. (iv) the strategy is sensitive to questions related to
    gender, youth, environment and AIDS. At any step, moment and area, these dimensions
    have to be considered within actions of planning and implementation. (v) The strategy will
    be based on the principle that agricultural development essentially concerns the private



                                                                                              vii
    sector and producers, who make it. But, at present, the role of the Government is crucial.
    It will be redefined in order to reinforce the ownership and responsibilities of the
    communities, producers associations, private operators as well as partnership between
    the Government and these actors. (vi) it will apply the principle of subsidiarity, in the
    sense that the interventions and responsibilities of public services, which will be
    significant at the beginning, will have to progressively be handed over to communities
    and to the private sector. (vii) Allocation of Government financial resources will be done
    with priority towards most competitive actions and productions.

17. Ten strategic axes of the PSTA have been defined on the basis of the orientations of the
    National Agricultural Policy and of the National Poverty Reduction Strategy: (i)
    diversification and intensification of crop, animal and aquatic production; (ii) diversification
    of sources of incomes and rural employments; (iii) link of production with market and
    integration of agricultural economy within the national and regional economy; (iv)
    sustainable management of natural resources and particularly of water and soils; (v)
    organization, mobilization and reinforcement of capacities of producers and professional
    organizations; (vi) reinforcement of service providers’ capacities, privatisation and private
    sector promotion; (vii) creation of a conducive institutional framework for producers’
    professionalisation and agricultural transformation. (viii) creation of a conducive
    environment, favourable to productive investments and to entrepreneurship and
    employment development in agribusiness; (ix) redefining the role of MINAGRI and the
    restructuring of its actions towards the sector program approach within the
    decentralization framework; (x) promotion of gender approach and reduction of
    vulnerability of underprivileged groups.

18. The analysis based on thematic and sub-sector approach enabled to identify four
    programs and 17 sub- programs, which are clearly detailed in the main document.

19. The program “intensification and development of sustainable production systems “
    comprises: (i) sustainable management of natural resources and water and soil
    conservation (ii) integrated livestock systems; (iii) marshland development; (iv) irrigation;
    (v) supply and use of agricultural inputs; (vi) food security and vulnerability management.

20. The program of “strengthening of organization and support capacities for
    professionalisation of producers” deals with (i) the promotion of rural organizations and
    the reinforcement of producers’ capacities; (ii) restructuring of proximity services to
    producers; (iii) rural innovation and research for development; (iv) rural financial systems
    and agricultural credit development.

21. The third program consists of “Commodity chains promotion and agribusiness
    development”. It is composed of four sub-programs: (i) creation of a conducive business
    environment and promotion of entrepreneurship; (ii) commodity chains promotion and
    development; (iii) processing of agricultural products and competitiveness; (iv) rural
    support infrastructures.

22. The fourth and last program refers to “legal framework and institutional development”. Its
    three sub-programs are: (i) legal and regulatory framework reform; (ii) public services
    reform and institutional support; (iii) coordination and evaluation of the agricultural sector

23. For SPAT implementation, MINAGRI will benefit from support actions of other Ministries
    and other partners in the fields of governance and local development; environment, water
    and land security, education and scientific research, commerce, industry, handicrafts,
    health and social protection, transport and communication infrastructure (ICT), as well as
    the financial sector. Harmonization of actions of the different actors will be sought and
    integrated in the on-going decentralization actions.




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24. An action plan has been elaborated for the implementation of the SPAT. Two phases
    have been distinguished.

25. The first year (2005) is considered as a pilot phase. It is partly meant for perfection of the
    strategy and its operational tools, mobilize the partners and resources and prepare a
    Medium-Term Expenditure Framework (MTEF) for the period 2006-2008. It will also be
    devoted to the formulation of specific policies in some important domains such as
    extension, communication and gender. It will also be used to restructure MINAGRI,
    redefine its missions and the roles and responsibilities of all stakeholders in the sector.
    The year 2005 is a year of initiation of pilot actions, particularly in commodity chains
    sector, agribusiness and the establishment of an Agricultural Guarantee and Credit Fund.

26. The second phase, which covers 3 years, corresponds to intensive implementation of
    priority programs according to defined priorities and to MTEF. It is only after this periods
    that the sector will enter in its phase of rapid development.

27. Given various risks, which can occur, implementation of this plan will be flexible and will
    take into account adjustment mechanisms, which will be elaborated and applied as the
    need arises.

28. These risks will be regularly assessed within the framework of implementation and using
    the mechanisms of participatory Monitoring and Evaluation systems. These systems are
    in conformity with those of he Poverty Reduction Strategic Framework.

29. The SPAT indicative financing plan has been elaborated on the basis of two elements: (i)
    financing needs identified during participatory workshops in the districts; and (ii) identified
    projects through thematic analyses.

30. The needs expressed by grassroots communities amount to 191 million USD for the 106
    districts of the country. Taking into account a ten-year planning assumption, this
    corresponds to 19.1 million USD per year, and 76 million USD for the period 2005-2008
    which is the SPAT period.

31. Necessary funds for the 4 SPAT programs and their 17 sub-programs for the period
    2005-2008 are estimated at 167 million US$, or 90.1 billion Rwf, distributed by 45%,
    12%, 38% and 5% for the programs 1 to 4, respectively

32. For the agricultural sector, the 2005-2007 PIP plans 9.1 billion Rwf in 2005, 14.6 billion
    Rwf in 2006 and 16.3 billion Rwf in 2007, a total of 40 billion Rwf for the considered three
    years period. On the basis of past trend, investment budget in agriculture for 2008 has
    been estimated at 20 billion Rwf. This will increase the total amount planned in the PIP to
    60 billion Rwf, or 103 million US$.

33. Compared to the amounts estimated in the 2005-2008 PIP, the amount needed for the
    implementation of the SPAT is 64 million USD, about 62% above the amount planned in
    the PIP.

34. Non-disbursed resources of the current projects in the agricultural sector, as well as of
    new approved projects total to an amount of 139.4 millions USD. Compared with the
    SPAT funding needs, these show that the deficit to finance is in fact 27.8 millions US$D
    only. However, if the absorption capacity is improved and particularly from the grassroots
    communities, it will be necessary to mobilize more resources to meet these needs.

35. In the assumption that the private sector will be involved alongside the public sector in
    agricultural investment, with up to 30% of public investment, the agricultural sector will
    benefit from an extra financing of about 50 to 55 million USD. The total amount of the



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   investments in the agricultural sector for the period 2005-2008 will therefore amount at
   about 220 millions USD.

36. As soon as the SPAT and its financing plan are endorsed by the Government, they will
    be a subject of consultations at the donors round able, planned to take place before the
    end of 2004. It will then go into application from 2005 with resources already available
    within the framework of current projects in the agricultural sector while mobilising
    additional resources.




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PART ONE: OVERVIEW

I.     GENERAL INTRODUCTION

1.1.   Justification of the Strategic Plan for Agricultural Transformation


1.    Right from the years 1998-1999, the Government of Rwanda initiated a planning process
aimed at transforming the economy and reducing poverty which would lead the country to be
categorised among medium income countries

2.    After mapping up some basic future prospects in the 2020 Vision, the Government put in
place a National strategy for Poverty Reduction (June 2000- June 2002). Its implementation will
be based on the formulation and elaboration of strategies for the essential sectors of the
economy.

3.    In order to facilitate the process for various sectors, the Ministry for Finance and Economic
Planning (MINECOFIN), through its Directorate of Strategic Planning and Poverty Reduction
Monitoring, prepared guidelines for the preparation of sector strategies and decentralised
development plans.

4.     The Ministry of Agriculture and Animal Resources has just formulated a National
Agricultural Policy (NAP), which gives clear orientations in terms of development in the
agricultural sector for years to come. These orientations will serve as a base for the elaboration of
a National Strategy for Agriculture, designed to articulate the National Agriculture Policy in an
operational framework and the central role of the agricultural sector for the rapid economic growth
projected by the Government of Rwanda.

5.    Through this framework, the Ministry of Agriculture and Animal Resources was able,
through a participatory and interactive approach, to conceive a process of formulation and
operationalisation of the NAP whose first step was the formulation of the sector strategy
comprising of sub-sector strategies, action plans and relevant budgets for the 2005-2007 period.
The strategies and action plans were inspired by the National Investment Strategy, especially in
the way it is streamlined in the Public Investment Programme and within the formats of the
Medium Term Expenditure Framework.

1.2.   Methodology

6.    The agricultural strategy documents were prepared and designed in conformity with the
methodology recommended by MINECOFIN. These documents were designed using the broad
sector approach, thus responding to their political will, contained in the National Poverty
Reduction Strategy which confers to the agricultural sector that is the pillar for rural development.

7.     The SPAT elaboration exercise is also based on four basic principles: (i) The internalisation
of the process through serious involvement of the staff of MINAGRI and other Ministries on one
hand and the mobilisation of national consultants on the other. (ii) Participatory consultation at the
District and Provincial level. (iii) Total integration of the work within the decentralisation policy. (iv)
collaboration with development partners in the technical as well as funding plan including the
steering level.

8.     Practically, a three axes methodology was developed: (i) participatory workshops at
District, Province and National level; (ii) progressive consultation of a database (on current
projects and new ones) using a format project profile that is automatically integrated into the
MTEF; (iii) structural and thematic analysise.



                                                                                                         1
9.      The national agricultural strategy, in conformity with the guidelines given by MINICOFIN,
integrate different elements, particularly the vision for the overall development of the agricultural
sector, in coherence with Vision 2020 as well as the sector policy, which is clearly presented in
the Agricultural Policy Document. This document will be referred to later for details regarding
definition for the concepts for the mission, objectives, strategy, programmes and budgets

10.      The present document is explicitly developed under the name “Strategic Plan for
Agricultural Transformation” in order to reflect the radical changes introduced by the new
agricultural policy. These include particularly the following:

      i. Moving away from agricultural substance economy towards a market economy;
      ii. Intensification and progressive modernisation of the agricultural sector;
      iii. New distribution of roles and responsibilities between all stakeholders in conformity with
            new policies regarding the Government disengagement from some sectors and
            decentralisation;
      iv.New methods of work in relation with the Programme approach adopted by MINAGRI in
            order to realise the SPAT objectives.

11. This document consists or four parts: the first part is general and deals with the diagnostic
the sub sector. The second part develops strategies and priority programmes. The third part
consists of the action and indicative plans and the fourth part contains annexes.


II.     STRATEGIC AND INSTITUTIONAL FRAMEWORK OF THE SPAT

2.1     International and Regional context

12. The coexistence of new technologies and different ways of life in the World has, in the last
decades, produced abundant literature with controversies on theories of economic growth and
development. Until today, for some people industrialisation is still considered as the engine of
development and agriculture as an essentially static sector with limited potential

13. Despite some efforts and often mitigated results in the macroeconomic field during the
recent decades, different indicators at microeconomic and social level in a number of developing
countries have shown that in most of those countries where reforms were geared towards the first
optic, the standard of living of the people seemed to deteriorate instead of improving. The
phenomenon of poverty, instead of declining, intensifies and becomes more and more complex.

14. It appears well established that in many third world countries, agriculture is worryingly
declining and poverty is intensifying in rural areas and it is the farming population who suffer
most.

15.    The case for the African continent is alarming. More than 200 million people in Africa,
about 25 % of the population on the continent, are chronically undernourished. Resort to food aid
has reduced the region to being more dependent than any other developing region in the world.

16. This situation has led concerned partners to focus their development policies on food
security, poverty reduction and sustainable use of natural resources. Hence various fora have
concentrated their effort on these problems, notably: the World Social Summit of 1985 and the
World Food Summit (Rome, Italy in November 1996) and the United Nations Conference on
Development Financing (Monterrey, Mexico in March 2002). These meetings confirmed a
paradigm change and dedicated to the millennium the objective of poverty reduction and
commitment to results. In most of these developing countries, agricultural development seems to
be a necessary pre-condition for structural transformation of the economy and for
industrialisation.



                                                                                                   2
17. African leaders recognise that agriculture is the base for their economy. Sustainable
agricultural growth is not only essential for reducing hunger, poverty and inequality, but it is also
equally fundamental for economic development.

18.    In order to put to an end the decline in the agricultural sector on the continent, African
leaders have committed themselves to put in place through NEPAD (New Partnership for African
Development), a Detailed Programme for the Development of African Agriculture (DPDAA), the
objective being to restore overall growth, to promote rural development and to ensure food
security in Africa. The Maputo declaration underscores the necessity to allocate at least 10% of
national budgets to the agricultural sector.


2.2.   Political, Economic and Social Context.

19. Ten years after the 1994 genocide, Rwanda has recorded big achievements on the political
scene including:
   (i) Total restoration of security on the whole territory
   (ii)      Putting in place and normal functioning of transition state institutions;
   (iii)     The reintegration of Rwanda in the Community of nations;
   (iv)      The progressive implementation of the decentralisation policy;

20. Based on the above achievements the country has embarked on a further political turn: the
processes of consolidating constitutional base of power by adopting a new constitution through a
referendum (May 2003) and the election of her leaders through a direct ballot (July 2003). This
has opened horizons for creating a progressively stable environment that creates confidence for
Rwandans as well as foreign investors.

21. The Rwandans economic context is characterised by a relatively high economic rhythm, a
voluntaristic vision for the future and development policies focusing around poverty reduction,
food security, diversification of the economy and decentralisation.

22. Economic growth rate was 6,6 % of GDP in 2001, 9,4 % in 2002, and 1 % in 2003. Inflation
rate and exchange rate fluctuation are relatively moderate. The public finance situation has
progressively improved, thanks to the effort applied in the fiscal policy. Public revenue collection
grew from 11.8 % of GDP in 2001 to 12.3 % in 2002, 13,5% in 2003 whereas public spending is
in decline, falling from 22 % of GDP in 2001 to 20.1 % in 2002 and 20 % in 2003.

23. The performance of the Rwandan economy depends mainly on the production of the
primary sector, in which agricultural(particularly food crops) production is essential. For example,
the low growth registered in 2003 (2.4%vs 9.4% in 2002) was due to the low agricultural
production ,which fell from 15% to 1%. This poor performance, resulting from poor rains,
adversely affected food crops. This situation had a negative impact on the national prices, and
combined with the imported inflation, led to an animal inflation rate of 7.4% as compared to the
projected 3%. Poor performance of the agricultural sector also aggravated poverty in rural areas,
as agriculture is the most important source of income.

24. Several factors contribute to the stagnation observed in this important economic sector.
Besides the structural problems, one can cite, among others, the climatic conditions and the low
level of investments, caused by the insufficient level of adequate mechanisms, scarcity of long-
term capital resources in Rwandan commercial banks and the sector specific risks.




                                                                                                   3
25. The problem of low level of investment constitutes one of the most important hindrances to
the growth of the primary sector in Rwanda. It is connected, on one hand , with the sector’s
intrinsic parameters, but also with the general economic environment in the country, on the other
hand. The financial sector is not interested in the agricultural sector and according to the
financial and banking institution, the sector is considered as a high –risk one for their capital. This
is the reason why the level of financing of the agricultural sector has fallen drastically since 1990,
such that it has become almost insignificant from 1998( it remains below 1%)

26. However, until 1989, agriculture was considered to be an important sector of the economy
and profited from favourable conditions within the monetary policy framework. Incentive
measures were given to this sector, especially through favourable interest rates and matching
loans.

27. The new policy of liberalization and the elimination of matching loans adopted by BNR, has
almost caused the exclusion of the agricultural sector, as removal of such favourable treatment,
the sector was abandoned by the banking sector. The commercial and other activities are
favoured as they bear fewer risks as those in the agricultural sector. Financing of the agricultural
sectors by the Government budget is very low. As an example from 2002 to 2003, the budget
allocated to the agricultural sector fell from 4.5 % to 2.94 0 % of the total Government budget,
representing respectively 1 % and 0,5 % of GDP. The low level of public revenues have also an
impact that the allocated budgets do not necessarily take into account the proposals made within
the poverty reduction strategy.

28. This situation is aggravated by the low absorptive capacity of the agricultural sector. In 2004,
for example, only 25.5 % of the development budget been utilized by the end of June ( Budget
Framework Paper 2005-2007) This problem of absorptive capacity is a result of a number of
reasons, including: weak capacities of implementation projects in the sector, lack of sector and
sub-sector strategies lack of adequate coordination but also due to lack of some information and
data about some expenditures.


29. The Government of Rwanda has not only the will to maintain this performance but is also
committed to some actions geared towards improving on it, and to ensure a firm sustainable and
economic growth. Among those actions the following can be mentioned:
           - the formulation of a prospective long term “Vision 2020 for Rwanda”
           - the formulation and adoption by all partners of the “National Poverty Reduction
               Strategy”
           - the elaboration of the National Investment Strategy
           - the preparation of the sector policy and strategies covering different priority
               areas.

30. It is more precisely due to this special context of poverty in Rwanda that sector policies and
strategies aimed at improving people’s standard of living must be organised.

31. In the last ten years, Rwanda has faced enormous social challenges especially in terms of
National Reconciliation, Settlement and Reintegration of genocide survivors and refugees,
rehabilitation of basic social services (education, health, water, hygiene, etc…..) and the fight
against AIDS.

32. The National Reconciliation process has been centred around: (i) arresting of suspects of
genocide and bringing them before the law; (ii) defining and establishing a system of judgement
that encourages people’s reconciliation under GACACA; (iii) social reintegration of former
refugees (before 1994); survivors refugee, and following the 1994 genocide .




                                                                                                     4
33. Basic services have been rehabilitated and new programmes are underway in the framework
of the National Programme for Poverty Reduction. But a lot of effort is necessary because there
are heavy requirements in terms of infrastructure (schools, health centres, hospitals), human and
financial needs and the population is ever growing (8.5 million in 2004 and a demographic growth
estimated at 2,5 % in 2004).

34. Special attention will continue to be attached to AIDS pandemic whose prevalence rate was
estimated at 11.2 % in 2002.

2.3.   Rwanda Experience in Agricultural planning and Development

35. In the last four decades, agriculture in Rwanda has gone through three distinct and
contrasting periods:
    (i) a twenty year period (1960-1980) characterised by high growth;
    (ii)     a period of stagnation followed by a serious repression (1980-1994);
    (iii)    a period of reconstruction and economic recovery (after 1994).


36.These periods were characterised by three different approaches in the formulation of
agricultural policies:
    (i) five or ten year plans – 1950 and 1990 with a period of not activity from 1960-1967;
    (ii)       planning based on the adoption an economic policy and financial framework and an
               elaboration of Public Investment Programmes (1991-2002);
    (iii)      the new form of planning based on a long-term vision, a national strategy for poverty
               reduction and sector strategies.

37. There is a marked characteristic in the history of past agricultural policies in Rwanda – and
that is their similarities: In the course of the past 40 years analytical elements have remained the
same: scarcity of land, small farms, overpopulation, poor productivity in terms of soil and labour,
degradation of the basic capital land extension policy, out of touch with realities of the
agricultural production etc… Equally, there was no variety in strategies and policies: improvement
in productivity, regional specialisation, and development of a marked economy, agriculture-
livestock integration, diversification of export crops, etc.

38. In spite of the presented problems, and the state of the recommended agricultural policy
measures, the rural area sometimes do not associate being concerned with programmes and
projects put in place in order to contribute to improvement of the living conditions of the rural
population.

39. At certain times especially in 1989-90, some developments were introduced in the name of
agricultural policy. Hence the concept of food security replaced the concept of self-sufficiency in
food. This helped in adjusting the objectives and programmes. The concept of development of
commodity chains equally developed at the time, leading to the necessity to streamline all
operations of production, transformation and communication in an integrated manner. The
concepts of specific projects as a priority were also introduced to deal with purely agricultural
aspects, linking agriculture, extension work and research as partners in the development of
the agricultural sector.

40. On the whole, it can be said that the evolution of agricultural exploitation system in Rwanda
was characterised by two factors: the demographic factor on one hand and the institutional
factors connected to the interests of the colonial administration and the development of export
crops on the other.

41. The duality (food crops – cash crops) which appeared in the colonial agricultural policy
system was continue and amplified by the post-colonial effects from the above mentioned two
types of factors.



                                                                                                  5
42. Demographic pressure combined with the colonial administration policy of holding back some
land for cash crops ( at least during the colonial era) were principally responsible for modifications
in food crops production. But adjustments remained at the primary level, and did not substantially
modify the methods used or the level of output. It was as if agricultural production was just
contented with adjustments necessary for minimal subsistence needs. This kept them at a very
low equilibrium leading to poverty conditions existing today.

43. Contrary to that, an outward looking agricultural policy of cash crops for export (coffee, tea
and pyrethrum) led to rapid incorporation of these crops, through research and extension
services, into the traditional cultural system together with accompanying technical packages.

44. It should be noted, however, that in as far as these innovations were concerned, rwandese
farmers tended to resist them in favour of their traditional substance farming and this held back
for a long time some new dynamics on which to base the desire to elevate their standard of living.
Even though the policy of high prices for cash crops for export and high demographic pressure
seen to be important factors for setting in motion new dynamics, experience has shown that the
level of such adjustments was not enough to stimulate growth and development. Technology was
quite rudimentary and the level of land productivity and labour were at a very low level.

45. Finally, it is a fundamental change in the whole institutional environment of the country, long
term commitment and development approach that are going to determine the rapid development
of the agricultural sector in Rwanda. It is in the framework of that new environment that a new
strategy has been defined with the participation of the beneficiaries. Mobilisation, involving and
making these people take responsibility in the formulating and implementing this new strategy
whose corner stone lies in the improvement of technology and productivity, together with a shift
towards markets should make a difference with the past situation and should lead to considerable
improvement in the standard of living of the population.

2.4.   Decentralisation and Community Development Plans

46. The agricultural strategy will draw lessons from the experience of development projects in
Rwanda, which exhibit a huge number of deficiencies, that merit correction:
    (i) projects were often conceived by foreign experts in collaboration with the central
              administration, but without any participation of beneficiaries in the choice or decision-
              making. The result is that people find it hard to take over any operations in the
              framework of classical projects and sometimes these operations come to a halt once
              donor funding is over
    (ii)      Exclusive recourse to foreign resources, without sufficient involvement of grassroots
              communities has often resulted in high project costs in relation to the benefits
    (iii)     Poor consideration (or none at all) of the social equilibrium and equality in classic
              interventions has often accentuated socio-economic disparities;
    (iv)      The rural development problems are handled in a sectaries manner, without
              dissociations, and without taking into account the intertwining nature of some sub-
              systems and their integration into the overall system.

47. Following the logic of decentralization political line, the Government has instituted a process
of decentralised community planning through a harmonised framework. Through that framework,
almost all Districts and all Provinces in the country possess a Community Development Plan
(CDP) designed on a participatory basis. Results from this process were used in the elaboration
of the definition of the agricultural strategy .

2.5.   Commitment to create new articulations in the development process.

48. For the National Agricultural Policy to be operational, it will be necessary to inject a new
articulation in the sector planning process. This articulation will be based on four principles:



                                                                                                     6
       (i) creation of a platform for communication between, and coordination of different
                 stakeholders of the sector;
       (ii)      linking the national level to decentralised levels;
       (iii)     articulation of financial flows to decentralized levels of implementation and multi-
                 stakeholder environments;
       (iv)      articulation of commercial perspectives and market orientation to food security,
                 environment and sustained economic growth.

49. Bringing together different stakeholders, in an appropriate framework, will allow the public and
private sectors and the civil society to work together, with a view to sharing roles and
responsibilities, harmonising the conception of strategies, approaches and modalities of
implementing their various interventions. Creation of such platforms will ensure efficient
coordination of technical and financial support from different development partners.

50. It will be very necessary to strengthen the new articulation between the central (national) level
and the decentralised levels. Decentralised Entities- that is: Provinces, Districts, municipalities
(cities, sectors and cells) will take responsibility in drawing up their development plans and their
implementation.

51. The modalities for facing these different challenges will determine the definition of the most
appropriate financial flows. Subsidiarity principle will guide the delegation of responsibility from
the central level to the decentralised levels. It will also lead to progressive withdrawal of the State
where and when the public sector and the private sector and/or the civil society can take over
former Government tasks. It is a major challenge to find appropriate financial mechanisms to
support theses new partners and support them to implement activities at decentralised levels.

52. National policies consider the agricultural sector to be a springboard for the fight against
poverty. Economic growth in the primary sector should raise rural households from their situation
of generalised poverty. This economic growth would equally initiate progressive development in
secondary and tertiary sectors. This would create off-farm employment. However, most of the
agricultural farms are still subsistence-oriented. The Agricultural Development Strategy should
reconcile market-orientation with the search for food security and the preservation of the
environment. On the other hand, it is important to put mechanisms in place, which guarantee that
different categories of agricultural farmers, especially the most vulnerable, benefit from the
economic growth that is being advocated.

2.6.     The place of SPAT in the national planning system.

53. The Strategic Plan for Agricultural Transformation results from an interactive and participatory
planning process that combines a bottom-up approach with the macro-economic top-down
planning approach.




                                                                                                     7
                      FIGURE I: SPAT position in the national planning process


    Rwanda
     Vision                                                                      National Investment
     2020                                                                          Strategy (NIS)

                            Poverty
                           Reduction
                        Strategy (PRS)

                                                       National
                                                      Agricultural               Macro-economic
                                                        Policy                     Framework




                                                     Strategic Plan for
                                                        Agricultural
Required                                             Transsformation
financing:                                                (SPAT)
                                                                                    Agricultural
                                                                                    Work Plan
-     For national                                                                   2005-07
      level and
      institutional
      support
                                                                                  Programmes
                                                                                  and Sub-
-     Per                                                                         programmes
      programme




                                                                Provincial agricultural
                                                                 development report
-     Per province



                                                                District Agricultural
-     Per district                                              Development report




                                  Community
                               Development Plan




                                                                                                       8
III.   GENERAL CONTEXT OF THE AGRICULTURAL SECTOR

3.1.   General Profile

3.1.1. Overview on the agricultural sector

54. For many reasons, the Government perceives the agricultural sector as the major engine of
growth: (i) Rwanda is the most densely populated country in Africa. For 2004 the population is 8.5
million people on a surface area of 26,338 Km2 – including water surface. The population density
is 325 people per square kilometre. Even if one would admit that annual population growth will
progressively go down after 2010 up to 2.2 % in 2020 as foreseen, the growth rate of 2,5 % par
annum in 2002 will lead to a population of about 12-13 million in 2020, bringing about 50 %
increase in the space of 16 years; (ii) The Rwandan economy is based predominantly on
agriculture. The population engaged in agriculture was 87 % in 2002, it provided employment to
88 % of the population, it contributes 47 % to GNP and accounts for 71 % of the country’s export
revenues. The quasi-totality of agricultural production is realised from about 1.4 million
households. The average size of a family farm is 0.76 ha, 66 % of the total food production is for
family consumption. The food that reaches markets (34 % of the total food production) feeds non-
farmers- (estimated at about 11.4 %), but also farmers who do not produce enough and have to
buy more from the market to satisfy their needs.

55. The absence of minerals and other natural resources, the landlocked ness, the current low
level of industrialisation, and the low purchasing power of the population largely explain why
agriculture and animal husbandry will, in the period covered by Vision 2020 and the National
Poverty Reduction Strategy, be the main engine for accelerated economic growth and sustained
development.

56. Despite the fact that grandees farmers usually adopt to changing conditions, 24-25 some
indicators point at a worrying evolution if the process of transformation and modernization of the
agricultural system is not embraced in time:

        (i)   Agricultural farms are facing more and more difficulties in ensuring family
                 subsistence, particularly during draughts; families are regularly confronted with
                 food and nutritional shortages, either seasonally or throughout the year;
        (ii) Traditional techniques for regeneration of soil fertility, such as fallow are no longer
                 possible;
        (iii) The decline in animal and manure production and erosion resulting from poor
                 deforestation brings with it a worrying decline in soil fertility;
        (iv) The incomes derived from the sale of agricultural products are not sufficient to cover
                 other households’ needs.

57. It is hence easily understood that in such a context, the poverty reduction strategy in Rwanda
must give the first priority to “rural development, and especially the transformation and
modernisation of the agricultural sector.”

3.1.2. Typology and characteristics of agricultural farms

58. According to a study carried out for MINAGRI/FAO on production systems in 1997, three
types of farmers with specific characteristics and strategies were identified .

TYPE A: “the small dependent farmer” with a small piece of land- his homestead, which cannot
produce enough food for the family’s subsistence – he has to engage in other activities (trader,
hauling, crafts etc…) or sell his labour to someone else to complement his farm output.




                                                                                                  9
TYPE B: “The self-sufficient farmer” This type has just adequate farmland and labour to satisfy
his family’s food needs. Other activities outside farming (trade, handicrafts)are an addition to his
farm output and important to the family as extra income.

TYPE C: “ production system using capital” is more heterogeneous. A first sub-group is close to
type B but has more production factors whereas a second sub-group is composed of absentee
farmers (businessmen, civil servants) who pursue land acquisition and accumulation strategies.

59. Small production units perform better per land unit than larger ones. However, intensive
farming (without farm inputs) results in over cultivation of land with severe consequences in terms
of fertility and sustainability. Poor availability of production factors limits land exploitation; Type A
(and B) families will look elsewhere to satisfy the needs of their families. The biggest production
units have high potential, which is not well exploited.

60. Production systems in Rwanda are characterised by: small family farms with an average of
less than one hectare in size, integrating polyculture - animal production system. These represent
90 agriculture % of the production units and cover about 1.2 million hectares. Cultivation
techniques are purely manual which require a lot of labour force. About 11.5 % of the households
have no land to cultivate. Analysis of TABLE N° 7 shows that 43.2 % of the households had less
than 0,5 % ha in 2000 and occupied only 25.1 % of the surface area. Land shortage leads to
widespread poverty and families who have to survive on the proceeds of some plots of level.

61. Rwandan agriculture is composed of complex farming systems based on a diversity of crops.
These are characterised by:

    (i) a common type in all regions composed of 7 major crops;
    (ii)     regional specific crops according to specific agro-ecological (altitude, soils) and
             socio-economic (communication, markets, farmers organisations etc.); conditions;
    (iii)    animal production systems, which play an essential role in the family economy and in
             the management of soil fertility (availability of manure).

3.1.3. Sector institutions

62. The Agricultural Sector Institutions include:
        (i) public institutions at the central level units
        (ii) local authorities at decentralised levels,
        (iii) private institutions;
        (iv) civil society;
        (v) other development partners.

63. At the Central level one can distinguish two types of institutions concerned with the Sector.
The Ministries and the public or semi-public autonomous institutions under MINAGRI.

64. Ministries share the following responsibilities: policy formulation, strategies, operational
programmes for agricultural policy (MINAGRI); planning of Agricultural Public Investment
Programmes (MINECOFIN), natural resource management related to agriculture such as land,
water, environment (MINITERE); road infrastructure and energy to facilitate intensification and
modernisation of agriculture (MININFRA); coordination of development activities at Provincial and
District levels (MINALOC); gender promotion, and capacity building for women engaged in
agricultural activities (MIGEPROF); training in modern agricultural techniques and other
professional training (MINEDUC).

65. Among the main public or autonomous semi-public institutions involved in the agricultural
sector are: the RIEPA, which promotes local and foreign investors in the agricultural sector, BNR
which ensures the supervision of credits and savings financial services in the agricultural sector,
and the Rwanda Development Bank (BRD), which is the spearheading institution in the financing



                                                                                                      10
of agro-industry, and the “ Union des Banques Populaires” (UBPR), which is specialized in
mobilisation of rural savings and small – scale credits.

66. Parasitical and other support structures include: research institutions (ISAR, IRCT), teaching
institutions (Faculty of Agriculture at the National University of Rwanda, KIST, ISAE Busogo),
some NGOS involved in research (development research) as well as offices responsible for the
management of tea and coffee (OCIR-THE, OCIR-CAFÉ). The Ministry also manages some
agricultural production support units like the National Centre for Artificial Insemination, the
National Veterinary Laboratory at Rubilizi, the National Seed Service and the Rubilizi National
Poultry Hatchery. These Institutions play an important role in the development and adaptation of
appropriate technological innovations in the sector .

67. The implementation of agricultural policies and programmes is under the responsibility of
districts and at provincial level under coordination of the Prefet. At the Provincial level the
agricultural activities are coordinated by the Director of Agriculture, Livestock and Forests (DAEF)
and at district level all agricultural activities are coordinated by the Officer in charge of the District
Agricultural Services (RSAD).

68. All activities related to planning, execution, follow-up, evaluation and reports are coordinated
the hierarchy of MINALOC, Province and Districts: Regular reports are made by the RSAD to the
DAEF who in turn submits the report to the Prefect. The latter sends a provincial report to the
Minister responsible for Local Administration (MINALOC) who in turn sends it to all Ministries
concerned.

69. Different private Institutions are also interested in the agricultural sector. Many entrepreneurs
in the private sector such as the “Rwanda Private Sector Federation (RPSF), which brings
together seventeen professional and sector associations and six provincial associations, are
becoming more and more involved in agriculture. Commercial Banks and UBPR are important
Institutions as far as financing investments in agriculture are concerned. The number of micro
finance institutions is growing steadily and these will equally play an important role in the
agricultural sector.

70. Agricultural Development Projects and programmes are often largely financed by
development partners. The Public Investment Programme (PIP) 2003-2005 indicates that most of
the funding in the agricultural sector is foreign funding (88.3 %). The multilateral funding
Institutions are the World Bank, ADB, FIDA, EU and BADEA; United Nations Agencies such
UNDP and FAO. Bilateral cooperation partners such as USAID, Netherlands, Belgium, China,
Germany, Italy, Canada, Great Britain, and International NGOS are equally involved in the sector.

71. A number of agricultural projects financed through loans are characterised by a low level of
disbursement, due to the poor absorptive capacity of the services responsible for their
implementation as well as the complexity of the donor procedures or delays in operations.


72. Several organizations and associations are also partners in the agricultural sector either as
service providers or beneficiaries in different projects and programmes. Community-based
organisations play a big role in the organisation of farmers and extension services, as well as in
the marketing of agricultural products.

73. The agricultural professional organizations are the major beneficiaries of the sector, not only
primary beneficiaries of various projects and programmes, but also as service providers and
service intermediaries at different levels, such as micro finance programmes. There are a number
of agricultural cooperatives and associations operating at national level. These include the Union
of Tea growers (FERWATHE) the coffee growers cooperative and the Association of Rice
growers. Some organizations, such as the association “ MBARAGA” grouping agriculturists and




                                                                                                       11
livestock keepers, and currently active in six provinces in Rwanda, are gradually taking a national
outlook in their provision of services.

3.2.     Specific characteristics

3.2.1. Poverty in rural areas

74. The general overview of poverty in Rwanda reveals the following: (i) the average annual per
capita income is about 250 USD; (ii) population below poverty line in 2000 was 64 % and 60 % in
2002 (iii)estimate household under the poverty line in rural areas is higher (68 %) than urban
areas 23 %; (iv) levels of agricultural yields are very low and on decline and 66 % of the
production is for subsistence and 34% commercial, (V) export revenues represent about 16 USD
per capita (Sub-Sahara Africa’s average is 100 USD) (vi) quantity of utilized fertilisers is 2kg per
hectare per year.

75. The poverty line was established in 2000 and set at the expenditure of 64.000 Rwf per adult
and per year and 45.000 Rwf is spent on food per adult and per year. This poverty line shows the
destitute status, which is further accompanied by other hardships such as insufficient means of
production or lack of access to land, health facilities, housing, clothing and school attendance for
children.

76. Over the last two decades, poverty had two peaks in 1980 and in the 1990s. The proportion of
poor households was 53 % in 1993. It sharply rose to 78% in 1994 and declined to settle at 60 %
in 2001.

77. Poverty is more rampant in rural areas (68 %) than in towns (23 %).
The Rwanda poverty profile shows that 96 % of poor food insecure people live in rural areas and
4 % in towns. Poverty and living standards depend to a large extent on land and livestock
property. The average size of a farm in Kibungo Province is (1 ha), Umutara (0,99 Ha), Kigali
Ngali( 0,9 Ha), Gitarama (0,86 Ha). These have farms bigger than the national average.
On the other hand, the surface area of form in the Provinces of Butare (0,36 Ha), Gikongoro (0,50
Ha), Kibuye (0,34 Ha), and Cyangugu (0,72 Ha) are below the national average. Further
accompanied by other hardships such as insufficient means of production or lack of access to
land, health facilities, housing, clothing and school attendance for children.

78. The level of poverty is reflected through the average size of farming land. This was 0.76 ha in
2000. However there is a big difference within the provinces .

79. Ownership of livestock, especially cattle, constitutes, just at the same level as ownership of
land, an indicator of the standard of living. Associated with these two indicators is the
characterization of poverty of households in six categories:

        (i)The category of destitute is composed of people who must beg for their livelihood. They
       neither have land nor do they keep animal (Umutindi nyakujya);
       (ii)     The very poor but who can work in other peoples fields, they own no land or have
                very little land and do not keep animals (Umutindi);
       (iii)    The poor who has just enough land to produce food for their family and who have no
                savings whatsoever (Umukene);
       (iv)     The poor who has a bit more land, keeps a few animals and besides subsistence
                production have a little more income to satisfy a few other needs like school fees for
                children (Umukene wifashije);
       (v)      The rich in terms of food security have a large farm, rich soils, some animals, enough
                food and at times get access to paid employment (Umukungu);
       (vi)     The rich in terms of monetary revenue (Umukire) have land, animals and
                enough monetary revenues (paid employment, trade) to maintain a living standard
                that is above average.



                                                                                                   12
The prosperity of this category of people often pushes them to migrate to urban centres.

80. The proportion between the six categories does not clearly appear in statistics. But it is
estimated that half the grandees households do not possess animals and a third of farmers do
not use manure.

81. Data on poverty according to different regions show a very big difference between Kigali city
and other provinces. Food related poverty stands at 96 % in rural areas. The provinces of
Gikongoro, Butare, Kigali-Ngali and Ruhengeri are relatively poorer-especially due to the high
population density and heavy soil degradation.

3.2.2 Food and Nutrition situation

82.     The analysis over time shows five major periods:

(i)     The food scarcity situation in the 40s and 50s forced the colonial administration to put in
        place administrative measures forcing people to plant non-seasonal food crops to combat
        frequent famines and food scarcity.
(ii)    The period between 1960 and 1980 did not experience any food crisis because of the
        continuation of the colonial coercive policy;
(iii)   In the middle of the 1980s the system reached its limit and production progressively went
        down; the critical point being in 1984 when a serious food crisis hit the country;
(iv)    A collapse in food and nutrition indicators was again observed in 1994;
(v)     A light improvement, compared to the 1990s, has been observed since the year 2000.

83. Compared to FAO standards of average food requirements per person per day Rwanda’s
agricultural production only partially covers needs: 87 % for calories, 70 % for proteins, and 22 %
for lipids the nutritional deficit is a general one, for energy and proteins, the deficit in fats is
chronically critical and has to be urgently addressed.

84. The food situation and the level of coverage of food needs, which are regularly established on
a seasonal basis throughout the country, shows different forms of disparities. The seasonal
variability is linked with the cycle of seasonal crops. The geographical variability shows evidently
the most fragile provinces as far as the food situation is concerned.
 Butare and Gikongoro variability are the most vulnerable Provinces in terms of food security.
They often register poor rate of food availability as compared to other Provinces. Byumba and
Kibungo are generally better covered. Disparities also exist at the level of agro-ecological zones
and at the local and household levels. For instance, Bugesera as well as some areas in Kibungo
and Umutara Region experience food shortages because of regular droughts. Some districts of
Ruhengeri, Kibuye, Gisenyi experience food shortages because of population pressure, infertile
land and high levels or soil erosion.

85. Data on the access to food of vulnerable households is not available and households headed
by widows and children, people without land, chronically sick people, and people with HIV/AIDS).
However, these categories merit special attention in addressing their of food security.

86. For the majority of Rwandans, daily food intake largely consists of bananas, roots and tubers
(sweet potatoes, cassava, and Irish potatoes), which contribute 60 % of calories. Leguminous
crops constitute the principle source of proteins and a considerable source of fats. Beans alone
account for 40 % of protein source, peas, soybeans and groundnuts are present. The last two are
the source of fat. Consumption of cereals (sorghum and maize) is poor despite the fact that they
are energy generating foods. Cereals contribute only 15.4 % of the energy needs. Animal foods
contribute little in the diet, they contribute just above 2% for calories, 6 % for proteins, and 40 %
for fats (the average is as calculated for the years 2001-2003). Although, vitamins and mineral
salts are important for a balanced diet, fruits and vegetables are only eaten in small quantities.




                                                                                                  13
87. The nutritional situation is precarious if one considers the fact that the rate of infantile
malnutrition (poor weight/underweight) recorded in 2002 was 24 %. Provinces with the higher rate
of chronic malnutrition are Gikongoro (50 %), Kibuye and Butare (48 %) and Byumba (47 %).

Table n°1: Malnutrition rate for under five children

 Residence/        Chronic malnutrition        Acute Malnutrition       Underweight
 Province          Weight/Height               Height/age               Height/age
                   Severe      Moderate        Severe     Moderate      Severe     Moderate
 Urban             11          28              2.5        6.4           2.1        15.2
 Rural             20          45              1.7        6.8           5.8        25.9
 Butare            22.5        48.2            1.8        7.9           8.3        31.5
 Byumba            23.4        47.1            1.4        7.0           6.6        26.0
 Cyangugu          19.1        39.9            1.5        7.7           4.6        25.5
 Gikongoro         21.9        49.7            1.1        4.0           5.5        30.3
 Gisenyi           17.7        42.0            2.4        7.1           3.4        18.5
 Gitarama          19.3        42.4            1.0        5.3           5.2        25.2
 Kibungo           19.2        44.3            2.0        8.9           5.7        27.7
 Kibuye            19.9        48.0            1.7        8.2           5.3        26.0
 Ville de Kigali   6.7         22.8            1.1        5.2           3.1        13.7
 Kigali Rural      19.1        42.2            1.8        5.0           6.5        23.8
 Ruhengeri         17.7        38.8            2.8        7.8           3.8        22.2
 Umutara           18.5        39.8            1.4        6.7           5.3        22.1
 Total             19.1        42.6            1.8        6.8           5.2        24.3
Source: EDS 2000

88. In order to fill the gap between production and needs, Rwanda and her partners have to
resort to importation and food aid. In 2002, 16 % of the total expenditure on imports was on food,
equivalent to 46 million US dollars, without counting food aid, which equally represented a
significant amount.

Table n° 2: Total cover rate

                       Local production                  Imports          Total    Cover rate in
                         contribution                  contribution                     %
Energy                       2025                          148            2173         103
Kcal/capita/day
Proteins                     44                         3                   47           80
g/p/j
Lipids                       10                         6                   16           40
g/p/d
Source: Compilation GECAD from Minagri and BNR statistics.

3.2.3. Land and labour productivity

89. Based on the volume of animal and crop production in 2002 and corresponding prices,
estimates for land and labour productivity were made in order to measure the current productivity
performances.

90. The value of the production in 2002 was estimated to be equivalent to 328 Billion Rwf (572
Million USD). This corresponds to a labour productivity between 0.91 and 1.36 USD per day of
labour and 400 USD per cultivated hectare. This corresponds more or less to the land area
managed by a household, integrating with crops grown twice a year ( 1 ha managed on an area
of about 0.75 ha for a household)




                                                                                               14
   Tableau n° 3: Estimation of land and labour productivity in 2002 value

Value of production in Rwf                    328,375,074,000     Rwf
Value of production in USD                        572,082,010     USD



                                                                  Productivity per        Productivity
Productivity Indicators              units    Number              unit (Rwf)              per unit (USD)
Cultivated land per year             ha            1,400,000                 234,554               408.63
Farms                                Nb            1,400,000                 234,554               408.63
Labour (2 actives/exploitation)      Nb            2,800,000                 117,277               204.32
                                     HJ          420,000,000                      782                1.36
Labour (3 actives/exploitation)      Nb            4,200,000                   78,185              136.21
                                     HJ          630,000,000                      521                0.91

   3.2.4. The role of women in agriculture

   91.In 1996 it was estimated that 34 % of households were female-headed, out of which 21 %
   were widows. The proportion of households headed by widows varies from Province to Province
   – 13 % in Gikongoro and 28 % in Butare. These households constitute the population at high-risk
   poverty.

   92. Even in other similar situations but where the number of female-headed households is lower,
   it has been proved that women play an important role in agricultural production activities.

   93. The participation of the rwandese women in production and notably in agricultural production
   is something so common that any anomalies or challenges in that field usually go unnoticed.
   Nonetheless it would be good to illustrate this phenomenon with some figures from observations
   or research carried out in Africa or in the sub-region. A glimpse at their activities shows that:



   (i) Rural women work almost all the time without rest except for some hours of     sleep.
   (ii) Women take part in all forms of activity whereas men do not do certain          types of work
   reserved for women by nature (breastfeeding, childcare) or           by tradition (grinding on the
   traditional grinding stone).

   94. It appears that, although men and women work together in agricultural work in different
   regions, there is always some form of division of labour according to gender. For example men
   tend      to     tender    cash    crops       such      as     tobacco,    coffee,    banana
   plantations and vegetables. Women tend to be more involved in food crops (cereals, tubers,
   beans, peas and maize).

   95. Division of labour according to gender are also observed in respect to certain tasks. Most
   labour activities, such as sowing and weeding are jointly done by men and women while other
   operations (manuring, stocking) are mainly done by women.

   96. Some socio-economic studies have suggested classification which distinguishes activities that
   are predominantly masculine and those that are predominantly feminine and the “mixed” type. In
   general non-productive activities and non-obligatory ones (visits, walks, rest, feast, mourning) are
   mixed, as they are practiced by both sexes in the same proportions. Activities that are productive
   but not compulsory (mainly commercial or paid in type) are masculine.

   97. Boys more frequently attend school and have more responsibilities in looking father animals.



                                                                                                    15
(more than 90 %) than the girls.

98. Studies carried out in the region show that women in age groups of 15-60 years spend one
third of their time in agriculture, while men spend only 19.4 % in agriculture 54 % of their time in
diverse leisure activities and on paid work against 18 % for women. Women use 29.8 % of their
time on domestic activities while men spend only 4.1 % of their time.

3.2.5. Peasants without land

99. People who have no land comprise 11.5 % of households in Rwanda according to EICV
survey (2000-2001) with the Provinces of Cyangugu (13 %), Kigali Ngali (7,8 %) and Gisenyi (7,2
%) on top of the list.

100. The EICV found out that households without land and who have to rent it often get bad
quality land. These families are often poor with no means to acquire farm inputs, which would
help to produce enough food for them. They depend essentially on their production for their
livelihood and have no other source of income (off-farm activities).

101. Therefore any shock on their production (e.g. climatic) throws them into a food insecurity
situation.

102. On the other hand, it has been noted that farm workers alternatively go through periods with
heavy activity- with a lot of activities timetables (for instance during tea harvest) and periods law
activities and have no savings.

103. gain, off-farm employment is rare in the rural areas, which partially results from poor labour
skills.


3.2.6 The youth and their future in agriculture

104. Even though there are no real figures available on the youth in rural areas, there are some
indications that unemployment is increasing (small groups along the roads and some town and
city suburbs; school drop outs and rural exodus).

105. Young orphans of war and AIDS orphans are heading households and have to take over the
cultivation of their parents farms without having had any preparation for it. A synchronised action
for professional training should identify what is feasible with the view to preparing the youth for a
better form of agriculture or even other business opportunities.

IV.    SUB-SECTOR ANALYSIS

4.1.   Natural resources management and water and soil conservation

4.1.1. Situation of the sub sector of natural resources management

106. The rwandese agricultural landscape faces a thorny problem of availability of arable land
and the small size of the country (26.336 km2) does not offer any alternative to increase arable
land. The surface of arable land is estimated at 1.4 million hectares (52 % of the total surface of
the country).

107. In addition to the small size of the agricultural farms, crops are grown on steep slopes up to
80 %. The most marginal zones (steep slopes and poor fertility are occupied by less demanding
crops generally cassava.




                                                                                                  16
108. It is generally agreed that slopes of more than 5 % need erosion control measures.
However, most of the cultivated land has steeper slopes and is not protected, according to the
recommended control measures.

109. It is estimated that only 23.4 of land in the cultivated are is more or less free from risk of
erosion, 37,5 % requires preparation before cultivations while 39.1 % % of the land has high risk
of erosion.

110. It has been established that Rwanda is losing 1.4 Million tons of soil per year. This
corresponds with a decline in the country’s capacity to feed 40.000 people per year. The annual
loss is estimated to be for organic matter (945.200 tons), nitrogen (41.210 tons) phosphorus (280
tons) and potassium (3055 tons). In some areas it can go up to 557 tons/hectare. These losses
affected all crops. The Nyabarongo river carries 51 Kg/second of soil at Nyabarongo-Kigali; 44
Kg/second at Nyabarongo-Kanzenze, and 26 Kg/second at Akagera-Rusumo.

111. The climate is aggressive and capricious. On one hand it is characterised by strong
precipitation in the mountainous areas resulting into heavy erosion and soil degradation. On the
other hand, low altitude areas such as Imbo, Bugesera, Mayaga, Mutara experience erratic and
low rainfalls.

112. Out of 165.000 hectares of marshlands, 93.754 hectares have been cultivated (57 % of the
total surface area). Only 5000 hectares are developed and can be cultivated throughout the year.
Other hectares are arbitrarily cultivated without any technical study by peasants grouped in
organizations or by cooperative groups supported by local or foreign non-governmental
organisations. Such developments risk causing ecological disequilibria in the fragile ecosystems.

113. Other general problems in terms of soil and water and management in Rwanda are the
following:

     Poor use of farmyard manure even though more than 50 % more or less raise cattle, the
         average number of cattle is small and cattle breeders practicing zero grazing are rare.
     Agroforestry is not well developed- which explains lack of firewood and this results in
         people using farm residues for home use;
                    Erosion control actions are being applied but not sufficient not diversified and
not well spread over all the zones needing erosion control. Erosion control is not yet perceived as
a parameter for intensification of production.

4.1.2. Constraints

114. The first constraint to improved soil and water management is the demographic pressure. It
leads to: rapid decline in the size of farms; fallows disappear from the farming system, over
cultivation, lack of replenishment of organic matter, cultivation on excessively steep slopes
without any erosion control measures.

115. The second constraint is connected to soil quality and their advanced degree of degradation.
Soils are very poor and have low organic matter and low fertility potential except in lowlands and
volcanic soils. Some hillsides are already completely degraded by erosion and production is
impossible without fertility restoration.
Agroforestry is less developed yet it can be adapted to all zones and on all slopes while playing a
multiple role in soil conservation and biomass production.

116. The third constraint lies in maintaining inappropriate agricultural techniques and low interest
of farmers to apply the recommended measures..

117. The fourth constraint is linked to institutional aspects. Services in charge of water and soil
conservation (WSC) are not efficient. Very few marshlands have been developed and given



                                                                                                 17
enough infrastructures for water management. The law on WSC has never been applied. The
results from research are meagre. Upland irrigation is unknown in Rwanda.

4.1.3. Potentialities

118. Potentialities are linked to a number of favourable factors: a big agro-ecological variability;
existence of 165.000 hectares of marshland of which 100.000 hectares can be developed and
make agricultural intensification possible; water resources are abundant and can be used for
irrigation purposes on hills; rainfall is relatively abundant.

4.2.    Crop production and commodity chains

4.2.1    Situation of the sub-sector of crop production commodity chains

119. Agricultural crop production in Rwanda can be grouped in three categories: food crops
(leguminous, cereals, roots and tubers, banana); and the traditional cash crops (coffee, tea,
pyrethrum). And the new cash or export crops(fruits and vegetables flowers, spices etc.)

120. Food crops occupy 92 % of the total cultivated land; while coffee and tea occupy
respectively 6,3 and I,6 % of the total cultivated land. The average cultivated land in the 1997-
2003 period was 1,428,033 hectares. This surface area is divided as follows: cereals 18 %,
leguminous crops 26 %, bananas 26 % roots and tubers 28 %. In 2002 the cultivated surface was
74 % of the available land while fallow land/grazing land, woodland and others occupied
respectively 14%, 7 %, 5 %. The Agricultural farming typology shows that 17 % of the farms are
less                                                                                         than
0,25 ha; 26 % are between 0,25 ha – 0,5 ha; 29 % between 0,5 ha and          1ha, and 28 % are
more than 1ha.

121. With regard to cereals, the commodities Maize and rice need a special attention.

122. The commodity chain of Maize

Is currently under full reorganization and will undergo a profound change, also due to increased
involvement of the private sector in its production, transformation and commercialisation. This is
best illustrated by the case of the company MINIMEX, which has started the construction of
factory for maize flow processing factory with the capacity of 300t/day i.e. a capacity of 60.000
tonnes in 200 days a year. This is equivalent to 75 % of the current total national production and
a partnership with farmers organizations for partnership with farmers organizations for the
production of the raw material (maize)has already been established. The maize crops possesses
the advantage of being grown in all agro-ecological zones of the country, with a higher potential in
the provinces of Ruhengeri, Gisenyi and in developed marshland. Maize has a very big potential
for intensification fertilizes application.

123. Rice is a cereal with growing importance in Rwanda and the year 2004 was dedicated to it
worldwide. In 2003 rice was grown on 6.020 ha with a total production of 27.866kg paddy rice,
equivalent to 18.112 kg of polished rice
Rice production is conducted in rice schemes in the provinces of Cyangugu, Butare, Gitarama,
Kigali-Ngali, Umutara and Kibungo. The study for the marshlands utilization master plan identified
48.000ha of marchlands, which can be used for rice production. The national rice production
covered 28 % of rice needs in 2001, 50 % of needs in 2002 and 60% of need in 2003. Importation
of rice costs the country an average of 305 Billion Rwf annually, which can be greatly reduced if
the national production capacity is increased. MINAGRI plans in this regard to increase the area
of development works marchlands development works will be through the Rural Sector Support
Project (RSSP). Research activities by ISAR have shown results of up to 10t/ha under controlled
plots, compared to 5 t/ha on farmers plots.




                                                                                                 18
124. The traditional export crops (coffee, tea, pyrethrum) are particularly important to the nation
(foreign exchange earners) and to the farmers (monetary income).

125. Coffee is grown by 400.000 farmers in 60 Districts, which were identified as the most
suitable for the crop in the context of regional specialization and intensification of coffee growing.
The number of associations working with OCIR-CAFÉ is 80. In the 2000-2003 period coffee
exports were worth 19 million dollars on average per year, being about 28 % of the total export
earnings. Coffee production rose up to the middle of 1980s with a maximum recorded in 1986.
Production began to fall until 1998 and started to come up again in 1999. The level of production
recorded until 01/09/2004 is 25.000 tons. In order to improve the quality of coffee, which had
deteriorated (48 % coffee in 1986 against 2.4 % in 1995), the Government has undertaken a
promotion programme of washing stations (13 in 2003, with an anticipated raise to 20 in 2004).
The fully washed coffee production is currently 700 tons in 2004 and standard coffee stands at 35
% of the national coffee production.

126. Tea constitutes the second traditional export crop. Tea production covers an area of 12.800
ha, in industrial blocks and village smallholdings. It is processed in 10 factories: Mulindi, Pfunda,
Rubaya, Nyabihu, Mata, Kitabi, Gisovu, Shagasha, Gisakura and the private factory of
SORWATHE.

127. In 2002, tea was the major export earner (USD 27 millions, representing 39 % of export
earnings). Prices fluctuate enormously on the world market; it rose from 0,70 cents per kilo in
1995 to 1.40 USD per kilo in 2001 and 1.75 USD in 2004. Production varies from 13.000 tons to
17.000 tons in normal conditions and income from tea is around 20 million to 27 millions USD.

128. Following the recent implementation of price differentiation and improvement in tea
transport, OCIR-THE has recorded considerable increase in the rwandese tea quality which is
now ranked first in Mombasa.

129. Prospects for tea growing development are based on the privatisation of 8 factors of OCIR-
THE by 2005.

130. Pyrethrum growing has created a new window of opportunity for the national economy,
especially since the privatisation of its factory, which went to SOPYRWA in 1999. Production of
fresh flowers has reached 4.000 tons per annum and income to the 25.000 planters is in the
range of 200 million rwandese francs; export earnings have reached 2.7 Million USD per season.
With the installation of the 500 Kg/day capacity refinery in October 2004, a new window of
opportunity was created and this will enable supplying the markets in the sub-region.

131.The use of fertilizers: Rwandese Agriculture is characterized by a very low level of inputs
use, especially mineral fertilizers. The national fertilizers consumption per cultivated hectare is
estimated at less than 4kg. This is clearly less than the averages (from 9 to 11kg/ha during last
year) for Sub-Saharan Africa in general, which has still the weakest fertilizers utilisation level as
compared to any other region all over the world. The analysis of the trends of the last ten years
shows that the quantities of imported fertilizers have rarely exceeded 8,000 tons per year.
Fertilizers’ import has been liberalized in 1999 and private companies have begun to be more
interested in this sector. The Government has, in this regard, taken measures that were to favour
the involvement of the private sector by abolishing free fertilizers distributions as well as ICHA
and customs fees for entry of fertilizers (May 2000).

132. The Government has also put in place, under funding from the World Bank, a credit line for
fertilizer import and under subsidized interest rates (9% instead of 16%) within the Rural
Agricultural Markets Development Project. According to the final report of the Project on 28 June
2004, an amount of US $ 1,28 millions was used (and fully reimbursed) with credits provided
through commercial Banks, that is, 64% of the total amount that had been budgeted for.



                                                                                                   19
133. Among the factors that limit the use of fertilizers, the following can be cited (i) lack of enough
skills in the use of fertilizers; (ii) high cost of fertilizers; (III) inadequate supply and demand which
is difficult to be assessed and (iv) lack of credits to buy fertilizers.

134. The advocated measures to make the potential use of fertilizers meet with the effective
demand are (i) the increase of the rate of fertilizers’ adoption by improving the
research/development and extension; (ii) the improvement of farmers’ awareness in the fertilizers’
potential and the way they are used and (iii) the improvement of supply so that fertilizers can be
available any time and anywhere they are needed.

135. As far as producers’ organization is concerned, there is existence, at all levels, of a number
of Associations, groups, federations and cooperatives, which intervene at different steps of
agricultural commodity chains. Most of Associations and federations deal with production of food
crops and vegetables , but since some years , a certain change within Associations of tea and
coffee farmers can be noticed. Tea farmers’ Associations are grouped at a national level within
the Rwanda Federation of Tea Farmers’ Associations (FERWATHE). Different Rice Cooperatives
are also grouped at a national level within the Rwanda Rice Cooperatives Union called
UCORIRWA.

136. Rwanda farmers and cattle breeders are, in addition, grouped since 1989 in the association
IMBARAGA that grouped 65.520 members in 2003 from Butare, Byumba, Cyangugu, Gikongoro,
Gisenyi and Ruhengeri Provinces. The ambition of this association is to be present in all the
provinces of the country. It is a national organization, which embarked on defending farmers’
rights as well as serving them. One of the realizations which has to be supported is the
organization of farmers within federations according to commodity chains..

137. Major problems faced by Farmers’ Associations are (i) the low level of members’
organization and participation , (ii) weak capacities especially in planning monitoring and
negotiation, (iii) lack of human, material and financial resources.

138. The national agricultural policy puts particular emphasis on the existence of a political and
strong will to restore Research and to restructure the Agricultural Research Institute of Rwanda
(ISAR). It also underlines the important challenge of the translation and transmission of research
results to the beneficiaries. The new mission of ISAR which is defined within the Strategic Plan,
published in 2002 seeks to involve, more strongly, the rural beneficiaries communities as well as
other partners in the dissemination of adapted innovations, so as to promote high levels of
productivity of agriculture that is oriented towards market, which contributes to the ultimate goal of
improving the population’s incomes, and food security thereby preserving the environment. The
definite goal is to move quickly towards a system of Research that is demand-based.

139. Regarding Extension, the National Agricultural Policy underlines the need to make the
participatory approach a routine, in order to allow all the concerned actors to be associated in
identification of extension needs and themes. Such a strategic orientation represents a good
innovation in terms of approach since it takes place within a conducive general context that has
been induced through the adoption, by the Government of Rwanda, of the program of good
governance, putting special emphasis on the concepts of popular participation as well as giving
them a sense of responsibility and ownership


140. The agricultural extension has been, for a long time, considered as the primary responsibility
of public services. It has been, on the whole, characterized by directive and administrative
approaches, with a little impact as far as the adaptation of extended technologies and agricultural
transformation are concerned.




                                                                                                      20
141. But we also notice , since some years ago, changes in approach which are positive signs
indicating a real will for change: it is , first and foremost, taking charge of some aspects of
extension activities by farmers’ associations. This is the case in some rice schemes and tea
plantations, where farmers’ associations are responsible for paying employees in charge of
extension. It is also the case of the Association IMBARAGA, which has already launched a
training program for farmers, which serve as an intermediary for extension services. This
appropriation of extension by farmers’ Associations is a source of efficiency and sustainability. It
has to be supported.

142. Worth mentioning is also the increasing implication of the private sector in the agricultural
production (Rice, coffee, tea, maize, new export cultures) and its partnership with public services
and farmers’ Associations in the promotion of commodity chains that are oriented towards the
market, the distribution of fertilizers as well as modern techniques of production. This partnership
constitutes an opportunity for agricultural development and must be supported.

4.2.2 Constraints

143. The major constraints that affect development food crops growing can be grouped into
different categories:

    (i) Constraints linked to production systems are due to predominance in subsistence farming
             and poor market integration; extreme land fragmentation, over cultivation without
             restoration of mineral elements washed away by erosion; very low farm output
             compared with the potential because of poor use of manure and fertilisers or other
             farm inputs; poor capacity in terms of plant protection;
    (ii)     Constraints linked to support services can be observed at the level of poor use of
             fertilisers because of ignorance about their effects by majority of peasant farmers and
             poor availability of these fertilisers (distribution circuits) as well as poor accessibility
             (purchasing power); sale of improved seeds does not satisfy the demand; a
             disorganised system of selling fertilisers; inadequate relation between research and
             extension services leading to poor technology transfer to farmers and difficulties in
             accessing loans;
    (iii)    Constraints linked to markets arise because of the fact that there is no added value to
             agricultural production due to lack of resources, infrastructure and transformation
             technology, conservation and conditioning; farming techniques which do not
             guarantee quality and security; poor marketing capacity amongst farmers
             organisations; etc…

144. Among constraints behind the fall in coffee production are: reduction in productivity, a large
proportion of old coffee trees, poor productive potential of traditional varieties, inefficiency in
extension services, poor capacity among farmers organisations, low coffee prices at the
international markets and lack of motivation amongst the farmers.

145. As for the low quality, it is due to the shortage of washing stations and inefficient systems of
quality control, poor conditions of coffee trees, insufficient price differentiation in relation to quality
and excessive competition among factories and exporters, which affects quality.

146. Among the constraints affecting tea development are:

    (i) poor capacity of tea producer organisations;
    (ii)      poor output of tea leaves especially among peasant farmers small holdings (7
              tons/ha average for OCIR-THE against 15 tons/ha for SORWATHE);
    (iii)     high costs of energy and transport of exports.




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4.2.3 Opportunities

147. Despite the numerous constraints, the crop protection sub-sector has a number of
opportunities:

       (i) political will to modernise and transform the agricultural sector as clearly expressed in the
                  2020 Vision, the Poverty Reduction Programme, the National Agriculture Policy;
       (ii)       MINAGRI leadership and committed and qualified staff;
       (iii)      involvement of private investors in the agricultural sector;
       (iv)       dynamism in farmers self-organisation and their good will in taking charge of
                  development of the agricultural sector;
       (v)        the last tenure act law which will limit land fragmentation and encourage land
                  regrouping with a view to utilising the land resource better;
       (vi)       future establishment of promotion tools (Agricultural Credit and Guarantee Fund) and
                  research prospects (rice, maize, wheat, tea, coffee, in vitro tissue culture etc…).

4.3.     Animal production and commodity chains.

4.3.1 Situation of the livestock sub sector

148. The livestock sector contributes about 8.8 % of GDP. The major animals raised in Rwanda
are cows (991,697) goats (1.270,973), sheep (371,766), pigs (211,918), chicken (2,482,124) and
rabbits (498,401).

149. The three provinces having the largest number of cattle are Umutara, Gitarama and Kigali.
The first province in characterised by the extensive type of animal husbandry, whereas the other
two are more or less oriented towards milk production. Raising of goats is more concentrated in
the provinces of Kigali, Byumba and Kibuye. Pigs are raised mainly in the provinces of Gitarama
and Butare. Bee-keeping is wide-spread in the provinces of Kibungo, Byumba and Gitarama.

150. The production systems are essentially of the traditional type, with very little improved
techniques utilized. Intensive production is practiced for diary production, with genetic
improvement activities, around Kigali City as well in the one of Gishwati, where great progress
has been achieved regarding genetic improvement.

151. Annual animal production is estimated at 97,981 litres of milk, 39,126 tons of meat, 2,432
tons of eggs, 7,612 tons of fish and 1,499 tons of hides and skins. This does not satisfy the needs
and requirements of the population. Consumption in Rwanda is 12 litres of milk and 4.8 Kg of
meat per person per year, while FAO recommends respectively 220 litres and 50 Kg per person
per year.

4.3.2. Constraints in the Livestock Sub-Sector

152. Major constraints for the livestock development in Rwanda are numerous:

       (i) Deficiency in animal feed both in quality and quantity. This arises from poor and narrow
                 pastures, water shortage, poor quality of commercialised feeds and limited use of
                 agricultural by-products;
       (ii)      Animal diseases, especially epidemic diseases which regularly affect animals;
       (iii)     Poorly performing local breeds with low productivity;
       (iv)      Poor diversification: livestock is essentially centred on cows which have a long
                 reproductive cycle and which are not accessible for the majority of farmers;
       (v)       Inappropriate veterinary legislation: laws regarding animal health are outdated
                 whereas laws on different other aspects such as hygiene, quality control and
                 veterinary profession do not exist;




                                                                                                     22
       (vi)     Poor veterinary services with few qualified cadres and poor means of responding to
                farmers needs,
       (vii)    Low level of investment in Livestock development which results into the absence of
                necessary infrastructure especially for transformation of animal products;
       (viii)   Inaccessibility to loans by small livestock farmers which limits their opportunities and
                possibilities of adopting modern technology in animal production;
       (ix)     Weaknesses in farmers organizations, which do not have sufficient human and
                material resources;
       (x)      Weak link between research and extension services. Most of the research is carried
                out in research stations and have no impact on the farmer.

4.3.3. Potentialities

153. (i) First of all, a high demand from producers which can be explained by the long livestock
keeping tradition and the need for restocking following the large number of animals decimated the
large number of animals decimated during the war, and the strong tendency of livestock keepers
to apply genetic improvement actions, including modern artificial insemination techniques.
There are currently a certain number of opportunities, which could contribute to livestock
development.

             (ii)The decentralisation policy will bring services closer to the people, notably at the level
             of the sector, which is at the base of development. Veterinary services should penetrate
             into this logic particularly at the level of administrative sectors where animal production
             constitutes a major economic activity;
             (iii)Land law which is about to be adopted will give to farmers more land security enhance
             the livestock of investments;
       (iv)        Drafts of revision of the law on animal health and proposals for new laws to cover
                   other aspects, which are not covered. This legislation will lead to better organisation
                   within the veterinary profession and will hence contribute to sub-sector development.
       (v)         Strengthening the veterinary profession through draft laws for better organisation of
                   the profession so as to play a more marked role in animal production development.
       (vi)        Existence of financial facilities to modern farmers through some institutions such as
                   the Rwandese Development Bank (BRD) and projects like PADEBL essentially for
                   the importation of improved breeds.
       (vii)       Establishment of Agricultural Credit and Guarantee Fund

4.4.      Farmers Organisations and Service to producers.

154. The grassroots farmer organisations (Urugaga Imbaraga) and animal productions farmers in
Rwanda) contribute, through extension work, to the strengthening of production structures and
marketing, though still meagrely. Agricultural services personnel should give more priority to
supporting decentralised collective units (through CDC) and farmers organisations and ensure a
follow up of actions and projects under them. They must assist them in the preparation and
negotiations of their projects and in their local development plans. Training of leaders of NGO’s
and peasant organisations is important for the future.

155. The Agro-business is a new concept in developing countries. It targets the integration of
agricultural sector development within an approach of market where the demand condition the
productivity and the competitiveness of the agricultural sector. Instead of concentrating
investment efforts on the food supply, the actual debate puts a special emphasis on skills and
control of markets.

156. Therefore, Agro-business puts together all the factors of agricultural markets in order to
stimulate the production so as to respond to consumers’ demand. It particularly deals with the
agro-industry sector in the broad sense ( collection, transformation, preserving, conditioning and
marketing of products from agricultural origin) and the sector of agricultural inputs.



                                                                                                        23
157. The Government of Rwanda is engaged in promoting the Agro-business through (i)
commodity chains development, (ii) transformation and competitiveness of agricultural products
to facilitate access to markets.

158. The Rwandan agriculture is less integrated into markets. As it has already been underlined
in sections related to agricultural and animal production, activities supporting the production are
hampered by a number of weaknesses both upstream ( proximity services such as inputs supply,
credit, organization and training of the rural population )and downstream (commercialisation,
preserving and transformation of products).

159. The Commodity chain approach, constitutes one of the Government’s essential axes of
intervention methodology and is based on the reinforcement of professionalism, specialisation
and regionalisation of agriculture. Research constitutes an important support since it has to
intervene at all stages of the commodity chain. The promotion of export products as well as the
increasing involvement of the private sector have particular importance.


4.5. Agribusiness, promotion of commodity chains, competitiveness, processing and
access to markets (agribusiness)

4.5.1 Situation in the area of agro-business and promotion of commodity chains.

160. Competitiveness and integration of agricultural products into domestic and foreign markets
are more and more determined by the capacity of producing countries to satisfy the requirements
of consumers in terms of quality and reliability of the food produced or transformed. If agriculture
in Rwanda does not attain the standards of quality and reliability required internationally, it will
miss the opportunity offered by globalisation. The projected rapid agricultural growth for poverty
reduction will depend to a large extent on the professionalisation of rwandese agriculture and its
rapid integration into the world market.

161. Domestically, poor food quality and reliability have severe consequences in terms of
diseases and malnutrition, especially in young children. It hampers the achievement of the food
security and nutritional programmes objectives.

162. Rwanda is importing food to ensure national food security. Imported food may be of poor
quality, which may compromise the nutritional situation. Imports may also enter into competition
with domestic production.

163. By aiming at quality, quantity and value of agricultural products, it will be possible to rapidly
ensure rapid growth through internal and external market development.

164. For a rapid agricultural growth to take place, there are three conditions:

        (i)   Technological changes which will increase animal and plant production by applying
                 modern techniques;
        (ii) Low transaction costs as a result of good road conditions, telecommunication and
                 market development;
        (iii) Export products, which will allow for production to increase more rapidly than internal
                 demand.

4.5.2 Constraints in the area of agro-business and promotion of commodity chains.

165. There are still following constraints to be removed:

    - Rwandese agriculture is not yet market-oriented



                                                                                                   24
       - Production and productivity levels are still low;
       - Commodity chains actors are not organized into inter-professional groupings
       - The fact that Rwanda is landlocked makes the cost of transport for export high (between
          Kigali, Mombassa and Dar Es-Salaam , the transport cost varies for example from
          US$3,000 and US $ 4,000 per container of 40 feet
       - Lack of cold chains
       - The limited number of sufficient export cargo which makes necessary for some products to
          wait for up to 5 days in stores and this has a negative impact on the products’ quality due
          to the fact that some products have to be delivered on the market within 24 hours;
       - The unavailability of basic agricultural equipment both in quality and quantity;
       - The inadequacy of appropriate technologies and products which do not meet standards
          and norms required for export market, therefore limited by the existence of non-tariff
          barriers
       - A low level of technical skills for most of producers and actors in the agricultural commodity
          chains;
       - Lack of entrepreneurs with sufficient financial capacities and determination to venture in
          Agro-business projects.

4.5.3. Potentialities in the area of agribusiness and promotion of commodity chains

166. Despite these constraints, there are development opportunities if there was implementation
of sub-sector strategies aiming at rapid growth, better allocation and appropriate management of
the existing natural resources.

167. Among the major opportunities are:
     Priority accorded by the Government of Rwanda on the development of agriculture as
       expressed in the national plan for the development of agriculture and in the poverty
       reduction strategy;
     Creation by the Government of Rwanda of a good environment for competitiveness
       through the legal and statutory framework that promote the development of the private
       sector, liberalisation of the economy, improvement in fiscal system, privatisation of public
       enterprises- notably those concerned with water, energy, telecommunication and
       privatisation of agricultural units (tea, coffee, pyrethrum);
     Strong will to promote partnerships between the public and private sector, in particular for
       the promotion of exports;
     Good effort by the Government to conquer foreign markets for agribusiness;
     Support by donors in the development of agriculture as an engine for growth and poverty
       reduction;
     Favourable climatic conditions for intensification and diversification of agricultural products;
     Growing consciousness of the importance of quality control in traditional and non traditional
       exports;
     An emerging interest for agribusiness amongst some associations, cooperatives or private
       investors;
     Abundant and young labour force.

4.6.     Support infrastructure

168. The development and modernization of agriculture in Rwanda faces problems of lack of
support infrastructure for production, transformation and marketing.

169. This infrastructure would largely create off-farm employment through labour intensive work,
agro-based industries, marketing and distribution services and types of connected jobs generated
by the development of agribusiness and the promotion of modern farms;

170. Analysis of the current situation has exposed various problems in the sub-sectors .




                                                                                                    25
171. In the area of livestock support infrastructure, the following constraints were identified:

           On the whole, water points for cattle are insufficient compared to number of animals.
            In Umutara Province, which is the principal animal production zone, there are only 57
            of them. The situation is even worse in regions that are vulnerable to droughts like
            Bugesera and Gako.

           There are only two big abattoirs in Kigali: SABAN in Nyabugogo and SATRA in
            Kicukiro. In each province and some districts, there are slaughter houses but these
            do not fulfil the hygienic conditions required besides poor slaughter infrastructure in
            general. Also environmental impact is not taken into account.
           Para veterinary services such as dispensaries and pharmacies are insufficient. This
            means that small and average farmers who cannot afford specialised services for
            their sick animals meet problems.
           Other infrastructures that are not sufficient are quarantine posts, veterinary
            laboratories and spraying corridors.
           The existing dairies with an annual production of 112.000 tons represents only 30%
            of requirements and this is insufficient. The only dairies available are: Nyabisindu,
            Inyange, Rubirizi, Gishwati and Nyagatare. Dairies at Gishwati and Nyagatare are not
            functional because they have not been rehabilitated.
           A well structured collection network lacks for milk. It is a major constraint in the
            development of the dairy sector because it is a handicap to local production flow and
            does not encourage intensification. This problem seriously compromises the reliability
            of the quality of milk and the health of its consumers especially young children.

172. The area of support infrastructure for transformation, packing and storing of agricultural
products faces numerous constraints. Except for the traditional export crops: coffee, tea,
pyrethrum- for which there are agro-industrial units, often old and inadequate, there is lack of re-
equipment programmes. The oil sector used to have an oil production for groundnuts but it no
longer functions. The European Union Programme for food security tried to put in place small
mills and oil extracting plants for the transformation of oleaginous grains in different parts of the
country but this distribution is still marginal

     A major hindrance for investment in agro-industry is the absence of cold room facilities
       between production and transformation sites, packing or expedition for export.
     Thus, the MAGERWA transit centre in Kigali has only two 20 feet cold containers at the
                                       3                                       °    °
       airport with a capacity of 18 m or ten tons. One of them can cool at 0 - 20 C while the
                           °    ° C.
       other cools at – 20 - 15
     Refrigerator trucks are almost unknown in Rwanda, but they are indispensable in improving
       transport conditions for food products and flowers for export;
     Small and medium enterprises requirements for exports have already been identified, but
       the low volume of exports, the high cost and irregularity of air transport are major
       constraints.

173. As far as transport infrastructure is concerned, the following constraints have been
observed:

     The principal road network, generally composed of earthen roads, is 1023 Km long of
       which 229 Km are in good condition (22 %), 440 Km in reasonable condition (43 %), 241
       Km in bad condition (24 %) and 113 Km in very bad condition (11 %).
     The road conditions in the rural areas are deplorable. This makes the marketing of
       agricultural products difficult and expensive.
     The transport of goods and passengers are performed by more or less specialised
       companies, but these are rare in the countryside far from urban centres.
     Connection by land with neighbouring countries and sea ports meets problems of high
       transport costs for different reasons (Bad road conditions between Kigali and Mombasa –



                                                                                                   26
           1750 Km in approximately 5 days; bureaucracy at the borders; long waiting periods in
           Mombasa, formalities of centralised export at MAGERWA; lack of and necessary
           equipment and installations at MAGERWA; bad condition of Rusumo road at the
           Tanzanian railway terminus; air connection with European countries is dependent on few
           Airlines with Nairobi as the connecting point).
        Insufficiency of Rwandan exporters leads to the fact that products may represent only 2 to
           4 tons per flight, depending on the availability of space. In actual practice, priority is often
           given to Kenyan exporters. Hence Rwanda’s perishable products have to wait. The result
           is decline in quality, which often leads to partial refusal or total rejection of the
           merchandise in Europe.

174. The tea sector is experiencing specific additional constraints.
     Since certain agricultural cooperatives have for some time now been responsible for the
       maintenance of the roads that link their plantations to the tea factories, the roads are
       almost impassable, since the farmers lack the means to ensure proper road
       maintenance. The tea factories thus affected are Cyohoha, Rukeri, Mata and Nshili-Kivu
       factories.
     Funding for the construction of Nshili-Kivu tea factory is available, but construction of a 50-
       km stretch of road is required to ensure access to the factory, as well as electricity for the
       functioning of the factories.
     Drying machines have been using wood, which has now become a rare product. This
       hampers the drying capacity of the factories, hence limiting the production capacity of tea
       growers.

175. Similarly, the coffee washing stations have other specific constraints. Before the 1994 War
and Genocide, there were only 2 such washing stations; Kora in Kayove Gisenyi and Masaka, in
Rural Kigali. There were also some small manual machines that OCIR CAFÉ had distributed. In
the last two years, 20 washing stations were constructed, and next year 15 others will be
constructed. On the whole, it is anticipated that about 100 stations will be set up. However, the
required infrastructure such as feeder roads and water sources are lacking.

176. Concerning the pyrethrum factory, the dryers (at Kora, Kabatwa, Butaka and Musanze) that
prepare the pyrethrum leaves for processing in the pyrethrum factory use wood. However, the
issue of deforestation has become a nationwide preoccupation, and the roads that link the dryers
to the factory are practically impassable.

4.7.     Legal and Regulatory Framework

177. Concerning legislative and institutional aspects, MINAGRI has to ensure the following: (a)
ensure an improved co-ordination between MINAGRI and other ministries involved in the
agricultural sector; (b) ensure the promotion of grassroots organizations, with a comprehensive
rural supervisory/training scheme that would be in direct contact with the grassroots
community/peasants; (c) promote professional organizations; (d) promote women’s organizations
and ensure capacity building/strengthening of their members; (e) ensure capacity
building/strengthening of service providers (agencies, research and popularisation bodies, private
sector, NGOs, etc.); (f) promote organizations that develop networks; (g) facilitate the organizing
and functioning of inter-professions; (h) arbitrate in conflicts between organizations

178. In addition, the government is in the process of establishing an environment that favours
private investment. Such an action requires some legislative reforms some of which have already
been carried out. What is remaining is to establish a more favourable legal framework so as to
increase economic activity and private investment. This may be achieved mostly through the
following measures:




                                                                                                        27
        The strengthening of MINAGRI and other related agencies, through the creation and
           implementation of agencies that could function privately, in the same way as service
           providers;
        Capacity building at district level, mostly through matching of their resources with
           monitoring of their responsibilities, as well as the instalment of simple systems to
           facilitate movement of funds and to manage information flow between the ministry and
           the districts (i.e. follow-up and monitoring, transparency and accountability, training);
        Reforming of the financial sector with the aim of restoring financial stability, to encourage
           commercial banks to fund agro-processing, to mobilize long-term (and more flexible)
           funding for the agricultural sector, increase small businesses’ access to funding
           (consideration of the gender factor), and to reduce the risk incurred by banks in
           establishing a guarantee fund;
        Reforming of commercial and business laws, as well as the establishment of a legal
           framework that would act as an incentive for private investment;
        Clarification of laws relating to agribusiness;
        Modification of policies and tariffs relating to taxes, customs duties and other levies.
        Establishment of structures and mechanisms for co-ordination between various partners in
           the agricultural sector as well as their networks; namely MINAGRI, the producers, local
           traders, the local authorities, UNR research centres, ISAR, NGOs, philanthropic and
           religious associations, so that each partner may play his/her role efficiently, in the
           interests of competitivity;
        Continuation of the policy of privatisation.

179. Constraints faced by the Ministry in this field may be grouped as follows:

        Monopolistic activity of the state which manifests itself mostly through (a) deeply
          entrenched bureaucracy (b) insufficient dialogue between the public and private sector
          and (c) too few investments within the private sector.
        An obsolete legal framework, with mostly (a) the absence of a jurisdiction adapted to the
          agricultural sector (b) a lack of safety mechanisms adapted to current conditions being
          faced by owners of small businesses; (c) poorly organized business networks.
        An insufficiently developed financial system that is not well adapted to the requirements of
          economic operators in the agricultural domain; a lack of financial institutions that
          specifically deal in funding of the rural sector; an extremely high interest rate (16%); the
          agricultural sector being a high-risk one, commercial banks are reluctant to give funding.
          In Rwanda, the percentage of private loans that are granted so as to enhance agricultural
          development does not go beyond 2% of the total amount loaned out by local commercial
          banks.

4.8.     Financing , coordination and monitoring evaluation of the agricultural sector

180. The success of the agricultural sector development strategies depends on the capacity of
the Government to mobilize the necessary funds to finance investments in this sector. These
funds are from the State’s budget, investors, or donors. For the latter, their funds can be either
donations, or loans. The financing propositions of these strategies have to take into account the
different macroeconomic constraints, which are related to the increase of expenses and of the
currency in use. Besides, in accordance with the different economic theories, the optimal level of
expenses depends on the relation between the growth, the interests rates and the yield related to
these expenses. Within the scope of macroeconomic policy, the increase of expenses that are
related to the new investments does not have to be inflationary. If financing funds come from
credits (bank system or donors), one has to make sure that the engaged expenditures lead to a
net rate of yield that exceeds the interest rates, that is, resources costs. This aspect is of great
importance because since the liberalisation of prices that was introduced in 1998, the Rwandan
currency authority is particularly preoccupied by the rates levels. This preoccupation is based on
the leverage effect hypothesis under which a high rate level discourages loans demand. On the



                                                                                                   28
other side, in order to maintain a strong RWF, the NBR gives prefers the restrictive policy within
which the high interest rate is one of the privileged instruments. This problem of high interest rate
constitutes an obstacle for private investments.

181.The agricultural sector is quite huge, and includes several stakeholders, as well as several
sectors. It is therefore important to develop a coordination and consultation framework that may
stimulate synergies in planning for, and managing the available resources.

182. With regards to the National Investment Strategy, the general orientation is to rise in
vestment levels from 18% of GDP during 2001 to 20 – 22% of GDP in 2010, so as to achieve an
annual growth rate of at least 7%, required to achieve the objectives of the National Poverty
Reduction Strategy. The required level of public investment would then grow from 51 billion RWF
during 2002 to 127 billion RWF in 2010.

183. The level of investment in the agricultural sector should grow from 8.3 billion Francs during
2002 to 14.7 billion Francs then 2006, then gradually the level of 10.4 billion Francs during 2010.
It is expected that from 2007 onwards, the private sector shall be the driving force behind
economic growth, and shall contribute in a consistent manner to the growth process.

184. If one compares these requirements to the reality, the current degree of investment within
this sector falls short of the required level. It is 84% of amount investment advocated by NIS in
2002; 72% of that advocated in 2003, and 79% of that advocated in 2004. The portion of the
national budget allocated to agricultural investments fee from 5.8% during 2001 to approximately
3% during 2003 and 2004.

185. In 2003, the main donors in the sector were: the World Bank (27% of total funding); the ADB
(19%); IFAD (15%); the USA (10%); the Netherlands (6%); Belgium (5%); and China (2%). Total
pledges amount to 195 billion Francs for the funding of 72 projects and programs, 29 of which are
big projects funded by the above-mentioned donors, and amounting to 84% of the overall funding.
186. The contribution of public financing in the sector is difficult to precise, given the inadequate
classification of the officially used nomenclature. This does not take into consideration the
projects or programs that are monitored outside MINAGRI but that have agricultural components
such as PDRCIU, CDF, PDL-HIMO, and PADDEP all which under the tutelle of Minaloc.

187. In terms of disbursement performances, it is noticed that there is an absorption rate, which is
relatively low (65 % of the investment budget in 2003) for the projects under MINAGRI, compared
to other ministries (100 % Mineduc; 98% Minisante).

188. The Rural Sector Support Project has particularly very low disbursement rates. The
disbursement rate was only 21 % by end June 2004, 32 months after its effectiveness and 18
months before the closure of its first phase. Weaknesses are observed both in the conception
and in the project implementation.

189. It is worth mentioning that the Government has put in place a mechanism of decentralized
financing (the Common Development Fund – CDF), whose performances are handicapped by the
limited capacity of districts to formulate projects and supervise their implementation.

190. Other weaknesses noticed at the following levels have been identified:
- The bank financing to the agricultural sector only represents 1,92 % of the total credits allocated
to the country’s economy in 2003. The institutions of micro finance are less developed and are
not enough and their direct contribution to agriculture is still very marginal. The only institutions,
which operate considerably in giving credits to agriculture, are the BRD and the Union of Peoples
Banks (UBPR). The contribution of the BRD to finance the sector rose from 156 Million Rwf to
913 Million Rwf in 2003, that is respectively 8,6% and 27% of the total amount of the credit
portfolio. The UBPR is progressively playing a more and more important role extension of micro-
credits . From 29,273 approved loans in 2002, loans of less than 20,000Rwf represented 8% and



                                                                                                   29
395 had amounts from 20,000 to 100,000Rwf. In spite of its recent efforts, the supply is still under
the needs of rural financial services.
- Concerning communication system, monitoring and evaluation, there is lack of a computerized
system which is easily accessible to key actors such as MINAGRI, MINECOFIN and MINALOC to
efficiently monitor and coordinate interventions within the agriculture sector.
- The monitoring and evaluation system in particular is not systematized, and only takes place
during the exercises of projects formulation or evaluation.
- There is a crucial lack of modern communication infrastructures (ICT) at the decentralized level
especially at the level of districts, which have to play a central role in planning and executing
agricultural development programs.
- The sharing of roles between the central Government, provinces and the districts require a
coordination mechanism as well as material and human resources in order to encourage a larger
participation of the population in the agricultural development.
- The coordination of donors intervening in the sector is still weak. The rural development cluster
created in 2002 is more a discussion framework than an effective tool of dialogue and
mobilisation of a long term partnership that is necessary for development of agriculture sector.

- The coordination of donors intervening in the sector is still weak. The rural development cluster
created in 2002 is more of a discussion forum than an effective tool of dialogue and mobilization
of a long-term partnership that is necessary for development of the agricultural sector.

V.     ANALYSIS OF CONSULTATIONS AT GRASSROOTS LEVEL

5.1.   Objectives, Methodology and general organisation of grassroots of consultations

191. Grassroots consultations aim at achieving four objectives: (i) information, sensitisation and
mobilization of beneficiaries compared with the new national agricultural policy; (ii) the
compendium for the beneficiaries’ points of view and contributions; (iii) making accountable the
beneficiaries and their communities in the choice of priority activities and their Implementation (iv)
the process ownership including monitoring and evaluation.

192. The beneficiaries’ consultations in 106 districts of the country took place in three phases in
accordance with the methodology described in appendix 3. The pilot phase, relating to
participatory workshops in the 10 districts of Kigali-Ngali, took place in July 2004. The second
phase has covered the Districts in Kibuye and Gikongoro Provinces (August 2004). For the two
other Provinces, Umutara and Kibungo, the district workshops took place in September 2004.
The last step will be about the 7 other Provinces (October-November 2004). Thus, all provincial
restitutions will have been finalized before the end of the year 2004.

193. During the 5 workshops held so far, the participation of populations and local authorities was
active. Such enthusiasm reflects the importance of agriculture in rural economy. The workshops
enabled the MINAGRI to re-establish communication with the base. The workshops have
inevitably created expectations in local authorities that the actions will follows the words. The
effective carrying out of the Strategic Plan is therefore very important to meet those expectations.
The results of consultations presented here show the constraints and opportunities identified in
the Provinces of Kigali-Ngali, Gikongoro and Kibuye. On this basis, participants in workshops
suggested solution ways, priority fields, as well as proposals of concrete actions to complete
those already included in the Community Development Plans.

5.2.   Constraints and problems raised

194. The outline in annex 1 presents, in the vocabulary of participants in the workshops, the
problems mentioned during the workshops. They are regrouped in seven fields: natural
resources, vegetable productions, animal production, producers’ capacities, support advice to
producers, agricultural credit and institutional environment. The totality of these mentioned
problems presents an integrated analysis of the problems of rural production systems, of daily



                                                                                                   30
problems which producers must cope with, weaknesses of proximity services, and general
problems the linked with institutional environment.

The problems mentioned are about the causes of generalized poverty in provinces, food
insecurity for rural households and low income for producers. They explain the low levels of
production and productivity for vegetable and animal productions, as well as the fundamental
reasons for the small orientation of production systems to the markets.

5.3.   Priority commodities

195. During the workshops, participants deeply discussed about the commodities in their districts
in order to choose the most useful ones. Thus, each district retained priority commodities (annex
2). The box in annex 2 shows the justification of choices of commodities for the three provinces.

196. As indicated by the choices of districts, the retained fields are not necessarily the more
important ones in terms of area or production, not even those relating to the soils’ potentialities.
Pending that a deeper analysis relating to the potentialities map be carried out in 2005, it clearly
comes out that the existence of the markets for local products orientate too much the choices of
priority commodities. For the commodities other than traditional crops for export, the urban
demand and the proximity of transformation units are very important. The choices of commodities
show that it is by conviction that producers maintain themselves in the logic of subsistence
agriculture. In the event conductive conditions are met, populations develop commercial
orientation for their agricultural production systems.

197. Justifications of choices for potato, wheat, climbing beans, milk and goat and pork meat
suggest that the promotion and the development of commodity chains require the creation of
favourable environment, whose elements are the following: availability of agricultural credit (to
invest), availability of seeds, inputs and support-advice (to obtain good outputs) and the markets
and prices which are relatively sure.

5.4.   Priority axes for the transformation of agriculture at local level.

198. During provincial consultations, problems were presented in form of a problem tree. Such a
form of presentation enabled to make the outline of agricultural development objectives for
Provinces. Provincial syntheses present first outlines of provincial community programmes for
agricultural development.
199. From grassroots consultations, it comes out that in fact the fundamental issues for the local
agricultural development are at two levels:
    (i) intensification and diversification of production systems and
    (ii)      quality proximity services to producers.

200. For the first level, priority is to be given to support measures, which enable producers to
better manage their farms and to be in charge of themselves in charge. Finally, producers
themselves must manage natural resources intensify and diversify their production systems and
penetrate the markets.

Priority axes are the promotion of the farmers’ organizations and the information and the training
of producers in order to build their professional capacities. This is mostly technical and
organizational support that enables producers to find solutions to the problems, which arise at the
level of their agricultural farms and in their fields and pastures.

201. Those priority axes require, at a second level, a system for providing quality and proximity
services to producers. And as it is shown by the mentioned problems, this is where the low level
fits in the present situation. The planning and the coordination of agricultural development
activities are poor; there is a lack of financial and human resources; appropriate technologies are




                                                                                                 31
not enough developed, accessible, diffused and adopted; micro finance services do not meet the
needs; and diverse agricultural inputs are not available.

202. Most of current interventions are isolated or punctual and do not lead to genuine
transformation of agriculture. During the workshops, participants gave examples of interventions
which have not produced the expected impact: (i) small impact of developments of hillsides and
marshlands because of the lack of accompanying measures (organization of producers,
agricultural intensification); (ii) disappointing results of restocking and genetic improvement of
livestock, because of problems linked to the maintenance of animals and the in accessibility of
feed for livestock to small and middle agro-breeders; (iii) Non-functionality of fish ponds, due to
lake of supervision and organization among producers.

203. he complexity of agricultural development requires a coherent set of interventions and
collaboration between the actors and stakeholders in the agricultural sector.

204.The analysis of the results from the participatory workshops shows that the populations call
out to all stakeholders in order to create agricultural innovation and service systems to producers
who associate support to the organization of producers, the search for adapted technologies,
technical support-advice, micro-finance, supply of inputs, information about the markets and the
prices for agricultural products. This method is to be realized within the context of the State’s
decentralization and disengagement, policies.

5.5.   Towards the Implementation of districts agricultural development plans

205. During the workshops, participants identified many projects and concrete actions, some of
which were already in the PDC. Other proposals have been added after analysis problems and
opportunities. The lists of the chosen actions are long and contain actions relating to
developments of side basins and marshes, integrated management of soils, agricultural
intensification and diversification, perfect command of cultural techniques, the fight against
erosion, storage, preservation and transformation of agricultural products, infrastructures,
livestock restocking, the organization and the training of producers, the intensification of
supervision, etc.

206.The total cost for the Provinces’ agricultural development proposal varies between 5 and 10
billion Rwf, i.e. between 10 and 20 Million US Dollars. By the year 2010, this represents an
amount of about an amount from 1.5 to 3 Million USD per year and per province. So far, such
amounts have never been spent for local agricultural development. However, they are not
unrealistic, because they perfectly reflect the breadth of the challenges to be taken up, notably as
regards the management of side basins, the management of soils’ fertility and rural
infrastructures. For the period 2005-2008, it is important that decentralized entities select more
priority actions and reinforce their technical organizational and financial absorption capacities.

207. One of the main conclusions which come out from basic consultations is that transformation
of agriculture requires first institutional reorganizations, reinforcement of the producers’
organizational and technical capacities and appropriate funding modalities, in order to find
appropriate answers to areas of weakness in the local institutional environment and to the
weaknesses of the services of support-advice to producers. Otherwise, there are high risks that
projects and solutions provided for will only be very partly carried out at the base, as it was the
case during the last decades.




                                                                                                 32
PART TWO: STRATEGIES, PRIORITY PROGRAMMES AND INTERACTION WITH SECTORS
FOR SUPPORT TO AGRICULTURAL DEVELOPMENT.

VI.    STRATEGIC PLAN FOR AGRICULTURAL TRANSFORMATION (SPAT)

6.1.   Challenges

208. The main challenges of the agricultural sector are the following: (i) transformation of
subsistence agriculture into commercial agriculture with all its involvements in terms of
institutional, social changes of behaviour and distribution of roles and responsibilities between
different stakeholders; (ii) to ensure food and food security in the country; (iii) improvement of the
farmers’ income and monetisation of agricultural economy; (iv) creation of extra agricultural jobs
enabling to notably reduce the agricultural population; (v) to contribute to the improvement of the
commercial balance, the domestic product and savings; (vi) to reverse the soils’ degradation
process and to manage the property soil in a sustainable manner.

6.2.   Mission of the Strategic Plan

209. The mission of the PASTA is derived from the vision 2020 and the objectives it assigns to
the rural sector in the fight against poverty and improvement of living conditions for poor rural
populations as well as their integration in an economic environment, which can bring then
prosperity and assurances of good life for future generations. The mission of the PASTA is «to
ensure to farmers’ populations a prosperous life and improved living conditions in modernised
and organized agriculture».

6.3.   Objectives of the SPAT

210. The Strategic Plan fits in the guiding in the driving line of the Strategic Framework for
Poverty Reduction. The overall objective of the agricultural sector corresponds with the one of the
National Agricultural Policy (NAP), more specifically the overall objective of the SPAT is to
contribute in a sustainable manner to poverty reduction and to support Rwanda’s economic
growth through increasing productivities of production factors, maximal valorisation of
productions, diversification of income opportunities, preservation and maintenance of natural and
environmental resources. Growth sources of the agricultural sector will be of two types: those
which are linked to a potential of export in the fields and the which are linked to the development
of the internal market, mainly the cereal fields (rice, maize), milk, meat and vegetable crops.

211. Six specific objectives are assigned to the sector: (i) to ensure a sufficient offer of
agricultural products and food security to the populations; (ii) to increase levels and to diversify
the households’ income sources; (iii) to maintain, preserve and improve the management of water
resources and soils; (iv) to contribute to macro-economic balances and to growth; (v) to
contribute to the resolution of social problems notably linked to gender, youth, farmers without
land and other vulnerable groups as well as to AIDS; (vi) to transform the mission and the role of
different actors (Administration, producers, civil society and private sector) so that adapt
themselves to the new-vision.

212. For some aspects, documents of vision 2020 as well as the document for the National
Strategy for Poverty Reduction are still more explicit in terms of quantified objectives. Within the
perspective of making Rwanda a country with medium income, from now to the year 2020, the
GDP per capita will have to go from about 230 USD in 2002 to 800-1000 USD (estimated in 2000
constant terms). This involves an annual medium growth rate of the real GDP included between
8% and 9% over the period. Agriculture would intervene in that growth at the rate of 6.3% per
year. The agriculture GDP would have to go from 310.292 Milliard Rwf in 2000 to 460.706 Milliard
Rwf in 2005; 646.066 Milliard Rwf in 2010; 824.562 Milliard Rwf in 2015 and 1052.373 Milliards
Rwf in 2020. This requires transforming 50% of agricultural farms in farms of modern type, to
treble the land productivity and to multiply the work productivity by 4 or 5. The part of the



                                                                                                   33
agricultural GDP in the total GDP would go from more than 45% to less than 30% between 2004
and 2020.

213. These objectives have been defined with the preoccupation to meet expectation of rural
populations both at the level of what is new in adopted strategies and proposed actions and in
their implementation modalities.

6.4.   Guiding principles

214. The agricultural strategy is defined in accordance with guiding principles and expressed big
orientations of development (i) in Vision 2020 notably as regards contribution of the agricultural
sector to the expectation of global objectives; (ii) in the Strategic Framework for Poverty
Reduction and in (iii) the Paper for the National Agricultural Policy.


215. The SPAT has acquired the following specific guiding principles as regards its strategic
approach: (i) it is first a participatory pro-poor strategy. This option is based on the fact that the
majority of the population are rural, live of agriculture and because it is in that sector that there
are the majority of poor. It makes intervene beneficiaries and their communities at all levels. (ii)
The strategy is progressive, flexible and dynamic. We must be conscious that the new
voluntaristic vision of agricultural development puts the population in new destinies and that risks
can be associated with that development. The strategy must be conceived so as to make
necessary adjustments and take into account the moment’s changing circumstances. (iii) The
strategy is based on the demand and the incentives to producers’ («demand driven»)0 It is for
taking into account the producers’ free and negotiated choices; public powers intervening in the
orientation through the setting up of appropriate incentive mechanisms. (iv) The strategy is
sensitive to the issues of gender, youth, environment and AIDS. Whatever is the phase, the
moment and the space in which you are, those dimensions intervene in the planning and the
carrying out of actions. (v) The strategy will be based on the principle that the development of
agriculture is mainly the fact of the private sector and producers who composed it. But in the
present situation, the role of the State, which is decisive, will be refocused in order to reinforce
ownership and assumption of responsibility by the farmers communities and
organizations and private operators as well as partnership between the State and those other
actors. (vi) It will apply the principle of subsidiarity so that the intervention of the public service,
which will be decisive at the beginning, will have to progressively give up to communities and the
private sector, responsibilities that go to them. (vii) The allocation of the State’s financial
resources will be made in priority towards the more competitive actions and productions.

216. The SPAT’s guiding principles are established duly taking into account the following priority
general orientations: (i) political and economic good governance; (ii) decentralization; (iii)
economic transformation of the rural sector; (iv) the development of the service sector and
manufacturing industry; (v) the development of human resources; (vi) the development and the
promotion of the private; (vii) economic integration at regional and international level. In particular,
vision 2020 considers that by 2020, the modernized agricultural sector would only occupy 50% of
the country’s population.

6.5.   Strategic axes

217. The following strategic Axes of the SPAT were established based on the National
Agricultural Policy’s orientations relating to the modernization of agriculture through horizontal
actions linked on one hand to increase in crop productivity and on the other hand through
reinforcement of producers’ professionalisation and specialization of agriculture through vertical
actions of the lopment. They are connected to the main lines of Vision 2020 and those for the
Strategic Framework for Poverty Reduction.




                                                                                                     34
218. They take into account the need of innovating in the nature of relations established between
different actors and in particular at the level of public services’ restructuring so that they meet
requirements of the new policy, participatory approach, actors’ capacity building and of the
partners’ role to development in the adoption and the carrying out of the enlarged programme
approach.

219.The following strategic main lines have been retained: (i) diversification and intensification of
crop, animal and aquatic production; (ii) diversification of income sources and jobs for rural
populations; (iii) linking production with the market and integration of agricultural economy in
national and regional economy; (iv) sustainable management of natural resources and in
particular that of water and soils; (v) Organization, mobilizations and building capacities for
producers and professional organizations; (vi) Building capacities for service providers,
privatisation and promotion of the private sector; (vii) Creation of a favourable institutional
framework for the professionalisation of producers and the transformation of the Rwandese
agriculture; (viii) Creation of an environment favourable to productive investment and to the
development of enterprise and employment in agribusiness; (ix) refocusing of Menagerie’s role
and restructuring of its actions towards the sector programme approach within the framework of
decentralization; (x) promotion of the gender approach and reduction of vulnerability for
disadvantaged groups.

6.5.1. Diversification and intensification of crop, animal and aquatic production.


220.Present cultivation practices participate in aggravating the levels of productivity in agriculture
and producers’ strategies rarely integrate the internal external markets’ evolution, except in the
case of coffee, tea and some crops such as potato, rice, maize and passion fruit for example and
to a small extent milk and meat.

221.The present sub-regional and international economic context is meant to become more and
more open. Agriculture of traditional type will not be able to put up with competition on regional
markets, which will develop without any doubt at the level of the neighbouring countries’
productions. It will be still less able to position itself on the international market, which is one of
the country’s objectives. It is therefore appropriate to adopt a voluntaristic approach in order to
avoid the risk of aggravating that Rwanda’s agriculture becomes withdrawn and which could start
more its present low productivity. It is therefore necessary to act on all factors likely to generate
quality transformations at the level of the production apparatus, regarding the behaviour of all
actors and regarding the socio-economic at the economic environment.

6.5.2. Diversification sources of income and employment for rural populations

222.The objective of reducing the agricultural population by 50% by 2020 involves a huge effort
for the agricultural sector to generate extra agricultural activities from a production, which must be
diversified and competitive enough to put up with the constraints of the transports of the transport
cost and transformation.

223.The promotion of non-agricultural job opportunities in particular in the fields of HIMO and
agribusiness and the development of other income sources notably through craft industry, micro-
transformation, etc. will enable to valorise the labour factor already in excess in the country and to
generate new opportunities for non-agricultural income.

6.5.3. Productions between production and the market and integration of agricultural
economy in the national and regional economy.

224.The fight against poverty is carried out through the increase of rural populations’ income. For
that reason, it is necessary to evolve towards an agriculture whose production must no more be
only designed for self-consumption, but more and more turned towards the market (local,



                                                                                                    35
national, regional and international). For this reason, the resolution of constraints downstream of
production must be a priority for the PSTA. The choice of productions to be developed must be
based on the demand, on the products’ comparative advantages, and on the search of
appropriate solutions to meat downstream constraints (preservations, transformation, marketing).

225.The priority orientation of incentives and resources towards the commodity chain and
agribusiness should be therefore being carried out in favour of opening up agriculture for the
internal as well as the external markets.

6.5.4. Sustainable management of natural resources particularly water and soils.

226.Rwanda can no longer allow the destruction of its essential soil and water resources without
taking corrective measures. The future generations will depend on actions taken in the first place
by village communities themselves because it is their heritage and their means for survival. The
task is enormous but it is vital. The government should mobilize all the energies to eliminate the
present psychological barriers to development and to the generalization and anti erosion actions
and integrate the producers in the process of soil conservation and rehabilitation of their fertility.
This process will be supported by major scale activities financial by partners of development
partners who are very conscious of the seriousness of the problem and invest financial resource
including those which can be used to change the attitude of the peasant society with regard to
this question.

6.5.5. Organization; mobilization, strengthening capacities of producers and professional
organizations.

227.This is a control axis of SPAT It is based on the principle of making the producers and their
organizations responsible for the reforms, which will be put in place in the agricultural sector aim
s at the centralization of the public services and pus all the producers and their organizations in
the development process. However, it opens up opportunities and new perspectives, and this
new context introduces new requirements to be fulfilled; without which they not operate. It is for
this reason the support of capacities in these organizations constitutes an essential element for
the success of SPAT.

228.Undertaking will require commitment and important mobilization of beneficiaries taking into
account the fact that she actions should be taken starting from the needs shown by the produces.

6.5.6. Strengthening capacities in providers of services, privatisation and promotion the
private sector.

229.In the above mentioned areas, the concept of Minagri towards the private sector will be
based essentially on non equivocal definition of the necessity for the later to undertake their
responsibilities in a revised institutional and legal framework taking into account new realities. In
this regard the initiative of MINAGRI will be proactive. It will require attentiveness in the first
instance and sensitive to problems of the private partners and ready to assist them to solve the
problems which are institutional in the nature but without distorting the market.

6.5.7. Creation of institutional framework conducive for the professionalisation of
producers and transformation of Rwandan agriculture.

230.The government has shown its commitment in professionalisation of producers its adoption
of a clear policy of decentralization and a set of institutional legal and regulatory frameworks.
Implementation of this policy should be perfectly reflected in SPAT, which will support in the first
instance the rural organizations, which are responsible for the development process. This
institutional framework should address the need for profit, to put in place appropriate means of
incentives to create a coordinated framework and communication with federations, unions and




                                                                                                   36
other professional organizations in order to attract the critical mass that these instruments offer
for professionalisation of the trade.

6.5.8. Creation of conducive environment for productive investment and development of
entrepreneurship and employment in agro-business

231.The are four categories of priority productive investments
       (i) small scale individual initiatives
       (ii) collective initiatives by the beneficiaries (OPS or the CDCs).
       (iii) mall and medium size investments and
       (iv) big investments.

232. Different fools will be put in place to offer a set of possibilities to this diversity of demand.
Activities related to the use and sustainable management of land, agricultural transformation and
commercialisation will be first put in place.

233. The improvement of the environment will be carried out along with the revision of the laws
regulation, adequate edition of application texts putting in place the Agricultural Guarantee and
Credit Fund, creation of a specialized department for agro-business questions and negotiation of
a specific project for conserve water and soil conservation.

6.5.9. Review of the role of MINAGRI and restructuring of its actions through a sector
program approach within the decentralization framework.

234.Decentralization, disengagement of government from productive sectors and the promotion
of diversified interventions in the agricultural sector should cause MINAGRI to restructure its
functions in a radical manner as well as in the manner in which it conducts its business.

235.An important change should take place in the type of relation and connections to participants
and in its approach among the communities that it serves and in other actions, which contribute to
the growth of the agricultural sector. It should change the way it carries its mission, mainly in the
advices it gives and participative research, in programming and in Coordination of its activities. In
this context, Information and communication Technology (I.CT) should be put in place to support
the pilot functions of the process, but equally to put in place a new form of communication,
internal as well as external in MINAGRI.

236.The participation of beneficiaries in all the stages of operation of the process will be extended
to analysis mechanisms, approval of demands and financial management. The experience of
CDF and of MINAGRI projects in financial decentralization will constitute a base to consolidate
and to extend its approach in all methods of financing.

6.5.10.    Promotion of gender approach and reduction of vulnerability of the
disadvantaged groups.

237.Gender, agricultural production nutrition and the protection of vulnerable groups are
intimately linked. In fact, the woman (and often the youth) is regularly required to accomplish a
number of tasks of the agriculture sector (marshland crops, small scale animal husbandry, and
agriculture in general if field works are considered). Furthermore, extension systems adapted to
Rwanda for many years have not taken the woman into account as a beneficiary and as an actor
in agricultural extension. Potentialities however exist for an effective integration of gender in the
process of agricultural development.




                                                                                                   37
     VII.   PRIORITY PROGRAMMES AND EXPECTED OUTPUTS

     238.The SPAT comprises of 4 principal programs with 17 of subprograms. Whose expected
     results appear in the quantified objectives of the Plan of Action (Appendix I), as well as in the
     attached annex (Appedix IX).

     239.The structuring of these programs responds to the type “program approach” where all the
     activities of the sub programs should follow services of common objectives with resources and
     complementary means.

     240.This grouping does not follow an ideal structure and overlaps between these programs are
     inevitable. However the later are considered to be liaison elements to assure complementation
     instead of duplication sources or conflicts.


     Interrelations between the 4 programmes of the SPAT.


                                                 3
                                 Promotion of commodity chains and
                                   devevelopment of agribusness
        2                                                                                   4
                                                                                      Institutional
  Support to the                                                                     development
Professionalisation
  Of producers.




                                                  1
                                        Intensification and
                                         Development of
                                 sustainable production systems.




     7.1.   Intensification and development of sustainable production systems

     241. This program comprises five sub programs: conservation of water and soils and sustainable
     management of natural resources
             (i) Integration of agriculture and animal husbandry and management of soil fertility.
             (ii) Use of marshland and irrigation development.
             (iii) Supply of agriculture inputs.
             (iv) Food security and risk management and marshlands vulnerability in the framework
                      of quantitative objectives, which are presented in the action, plan in the annex.

     7.1.1. Sustainable management of natural resources and conservation of water and of
     soils.

     242. The diagnosis of the sector has shown different level or degradation of process on land and
     its harmful impact that it can bring to the present and future generation. Based on the principle
     that the protection of the land heritage is the responsibility of those using it, the communities



                                                                                                      38
should be sufficiently conscious to be in charge of this problem and reverse the passive attitude
prevailing at present as regards the necessity to put in place anti erosion activities. It has equally
been shown that a large part of the problems lies on exposed land, being partially or
progressively exploited by the users themselves, adopting adequate cultural methods like
ploughing and curved ridges, construction of earth banks with plants, mulching, etc. It is evident
that systematic exploitation of land and anti erosion measure is an enormous venture requiring
financing which is impossible to mobilize.

243. The strategy for this sub sector will therefore be based on.
  the reinforcement of capacities of local governments in the area of land management
  sensitisation of communities to change attitude regarding Erosion control measures
  inclusion of erosion control programs in district development plans which can be supported
     financially by the CDF.
  Advising when required
  The financing of heavy works by the state, which assist the communities.
  Revision of legislative framework and regulations in relation with land issues
  Management of soil fertility

244. Vision 2020 has fixed the following specific objectives for the period 2002 to 2020
       o 90% of land will be protected against erosion
       o (II)° 10000 ha of land on hills will be irrigated
       o 40000 ha of marsh land will be developed
       o 140 valley dams and water reservoirs on hillsides will be constructed.

245. The action which will be carried out by SPAT are embedded in this long term objective. The
    period 2005 – 2008 will be dedicated mainly to the following:

    Revision of legal framework relating to conservation of water and soil (revision of the law of
        the
     30 March 1982 and its application).
    Updating the action plan and the conservation of water and soils (IFS/CES).
    Launching of pilot operations of integrated management initiatives of catchments areas in
     the provinces, which have placed this activity as a priority in their local programs.
     Mobilization of funds is being carried out for this operation in five provinces. These pilot
     actions will lead to the elaboration of a national program of protection and management of
     water catchment areas.
    Support of ISAR activities in the management of soil fertility
    Putting in place of sensitising and training groups of villagers on food production and
     conservation.
    Launch priority actions of protection of resources in forest zones and model fauna,
    Taking into account the general character, the government will follow up the efforts of
     mobilizing efforts of financial resources mainly those of GEF for actions to prevent
     degradation and management of international water resources

7.1.2. Development of integrated livestock systems, agro-sylvo-pastoral production and
promotion of specialized intensive animal husbandry

246. The development of an integrated livestock within agriculture is the principal option that is
offered to reverse the current process of soil fertility degradation and to reduce the disequilibria of
the population nutrition. But another option, that is complementary to the first one, consists of
encouraging moderns livestock keepers, specialized in intensive breeding techniques, in order to
promote milk and meat( production in large quantities (cattle raising, feedlots, intensive breeding
of pigs, goats, sheep, etc…), eggs and many other animal productions. This option calls for a
more intensive action in terms of modern breeding inputs supply (cattle food, veterinary products,
supply in improved breeds of cattle) as well as improvement of breeding training services
(prevention and veterinary inspection services etc..)




                                                                                                    39
247.The analysis of constraints shows that a set of actions is necessary to achieve this result.

248. The actions are to be carried out by MINAGRI as well as other stockholders. They involve
actions of reform and security of land tenure. The removal of psychological constraints on
livestock requires pasture production on small holding through introduction of small ruminants,
the constraint of purchasing big animals by credit facilities (important follow up), complementarity
between agricultural activities in the hillsides and management of marshland. The protection of
sensitive forest zones and marshland and their importance to the development of extra
agricultural activities mainly in the park zones where special programs will be carried out.

249. The basic strategy of this program is based on (i) the principle that any agricultural farm has
to possess some animals whose nature and number will vary according to the size of the farm
and the production system. These animals can be pigs, small ruminants and poultry. This
principle implies a strong action of restocking that is accompanied with genetic, technical, and
sanitary improvements that are necessary for expected quick transformation and investments as
well as enough incentives to attract the grassroots to efficiently participate (ii) the promotion of
conservation, transformation and commercialisation of animal products (iii) diversification which
will allow the utilization of all potentialities of different provinces for one or another type of
production and which will concern cattle , small ruminants, pig raising , poultry keeping , rabbit
breeding, beekeeping and fish farming in accordance with the demands expressed by the
population within the CDPs. The organization of support-advice at the level of each sector and
district should meet the precise demands for all these production activities.

250. Taking into account the nutritional needs, emphasis will be put on milk production which will
constitute a specific commodity chain approach.

251. Meat production will be developed through small animals development (goats , pigs and
sheep ) and promotion of improved village poultry through improved races and financial services.

252. As far as fisheries and fish farming is concerned, the Government has already approved a
big project for the development of these two activities and which is taken into account in the
elaboration of the action plan of the SPAT.

253. The projects in place which will continue out in the next three years will be revised to adopt
them to new trends of PNA and SPAT. In particular this concerns;

   National Poultry Hatchery of Rubilizi
   Support to the development of cattle and milk production
   Pan African program of epizooties control
   National veterinary laboratory of Rubilizi
   National Artificial insemination centre
   Restocking project

254. Project PAIGELAC The newly planned Priority actions will allow to reduce some constraints
of the sub sector, putting in place necessary conditions and costing animal husbandry bases
which contribute to the general objectives of the sector, namely: elimination of food deficit,
rehabilitation of soil fertility and increase of producers revenues.

  255.       The following actions are proposed to this effect;

   Follow up of ADB Project and development of milk and meat production.
   Restructuring the artificial insemination centre of putting in place a genetic improvement
    project and develop agriculture.
   Support restocking programmes services and appropriate incitements
   Advisory services in the improvement of feeding animals (production of fodder crops,
    creation of pastures)



                                                                                                   40
   Reinforcement of veterinary services in cooperation with the private sector and putting in
    place a monitoring project and intervention in the area of animal health.

7.1.3. Marshland development

256. The country has a master plan for marshlands development , protection of water
catchments and soil conservation, which was carried out basing on hydrology, pedology,
environment agro economic and sociology studies. An aptitude and land utilization plan has
equally been elaborated . Basing of typology of swamps cleared , two master plans have equally
been elaborated; these are the master plan for marshlands development and master plan for
catchments protection and conservation of soils. The two plans are complementary and should
be integrated.

257. The choice of marshlands to development and to manage should take into account the
orientations given by the master plan for marshlands development and for protection of
catchments areas.

258. The strategy marshlands to development of swamps will be based on the following
elements;
  The choice of marshland to manage should take into account the orientation of the master
    plan for management of swamps, protection of catchments areas, and conservation of soils.
  Before any development, before any big marshland development feasibility studies and a
    detailed pre-project including an Environment impact Assessment, will be an obligatory
    requirement
  The state will finance development works as they are very costly works.
  The development of a marshland will go hand in hand with the management of the
    catchment areas in which it lies.
  The elaboration of the specific legislative framework for utilization of marshlands.

259. The actions which will be carried out during the period 2005 – 2008 are the follows as:
  Elaborate a specific land law for swampy areas
  Security of more by those wishing to develop swamps.
  Develop and add value to the swamps basing on the existing master plan; The 2005 – 2008
    program will cover 5000 ha.
  Support the agricultural organizations and undertake the maintenance costs of
    infrastructures.

7.1.4 Irrigation development

260. Rwanda has abundant water resources that can irrigate areas. Gravity land irrigation is the
only one known in Rwanda and can not be practiced elsewhere outside the swamps. Much
remains to be done for irrigation on the hills. Taking into account the important potential which
small land users represent, MINAGRI intends to develop a program for development of small
scale irrigation parallel to pilot actions of developing hilly areas basins mentioned above and to
reinforce the sufficiency of existing large and medium - size perimeters;

261. The strategy in small the area of small –scale irrigation will be based on the following
principles;

   Support will be given for development of small scale pilot irrigation community projects
    identified in the local development plans;
   The contribution of the state will cover the construction of hydro - infrastructure putting
    emphasis on construction of upland water retention
    The contribution of beneficiaries should be mobilized

262. The following actions well be carried out;



                                                                                                 41
   Research and extension of methods to efficiently manage water resources in agriculture.
   Participatory identification of deficit sites water and study of water needs
   Support to elaborate irrigation and drainage studies
   Study and put in place a priority development plan for the irrigation of Bugesera and Rusumo
   Study the possibilities of pumping water from rivers, lakes and underground layer.

7.1.5. Supply and utilization of agricultural inputs.

263. Given that the quantity of fertilizers used is very little (4Kg per ha per year) due to problems
of distribution, it is necessary to put in place appropriate mechanisms to support the private
sector to raise by 25% each year the quantities of fertilizers imported so as to bring it to 8000
tones per annum and to at least 15000 to 20000 tones by the year 2008.

264. Alongside the increase in supplying fertilizers, research in participative popularisation
should be undertaken in a way to ensure the distribution of intensive methods associated with the
use of organic manure ,mineral fertilizers and soil improvement chemicals(e.g. lime application).

265. In the same way, depending on available resources, the government will support the follow
up and speeding up, importation of improved breeds as well as improving artificial insemination
methods and cross breeding;

266. The multiplication of seeds and of plants will equally be supported through support given to
professional organizations to develop private plant nurseries.

267.The agricultural mechanisation component will be developed in order to increase the
productivity of production factors, particularly that of labour. This evolution is a must in the sense
that it has to meet both the progressive agricultural labour force , on one hand, and the increase
of food demand on the other hand.

268. To achieve such a goal, the SPAT plans, among its activities, to put in place a section of
testing and dissemination of modern or improved agricultural equipment which will cover a wide
variety of needs such as improved farm tools and implements, milking machines, bicycle pumps,
tractors, combined harvesters, different equipments for the processing of agricultural and milk
products, etc.

7.1.6. Food security, management of risks and of vulnerability.

269. The country ha an agricultural potential, enough to ensure sufficient food availability in
quantity and quality, for the present and future population. The strategy to ensure food security is
based on:

        (i)   Putting in places productivity improvement programs for the traditional foods crops
                 and intensification of production for strategic products such as rice, maize, Irish
                 potatoes, milk and meat.

        (ii) Targeting of zones and vulnerable groups taking into account the disparities existing
                in the social groups and in regions and eventual shocks, which affect them .

270. The objectives in this area as determined from the objectives of vision 2020 summarized in
the table below;




                                                                                                   42
Table 4. Nutritional objectives set up in vision 2020

Availability             2010               Gap to               2020               Gap to
                                            objective 2010                          Objective 2020
                                            (%)                                     (%)
Energy in                2183               9                    3236               47
kcal/person/day
Protein                  58                 5                    108                43
In g/person/day
Lipids/person/ day       18                                      90


271. Three objectives will be pursued in this regard:

   Reduce food and nutritional deficits, mostly in lipids and balance the food situation targeting
    mostly the development of oil yielding types, cereals as well as milk and meat;

   Reduce vulnerability in food deficit zones and in population groups affected taking into
    account specific problems in these zone(mainly draught and acidity of soils), and population
    (rural households without land or having small pieces or land for crops, women and children
    managing households, the resettled persons, the demobilized , etc.
   Create employment mostly using the HIMO approach (Labour Intensive Works). They should
    target the forest persons as well as the unemployed and include a training component in
    skills in order to increase their professional capacity.
    Support to the professionalisation of producers

272.The retained priority actions are the following

   Putting in place a special food security programmer (PSSA).
   tracking system for agricultural production (mostly cereals and legumes)
   Put in place an information system on markets
   put in place an information system on food security and agriculture and rapid alertness
    (SNIAR)
   close follow – up of projects in other sectors in favour of special groups (youth without
    employment and demobilized soldiers) to ensure coherence with agriculture

7.2. Support to professionalisation of producers

273.This programme of support of organization capacities and t to the professionalisation of
producers) concerns:
(i)The promotion of farmers organizations and the reinforcement of producers capacities
 (ii) Restructuring of proximity services to producers, rural innovation, research for development,
 participatory
 Rural financial systems and the development of agricultural credit
 (iii)Rural infrastructure supporting producers

274. The requirements of SPAT to transform traditional agriculture and turn it towards the market
calls for training of producers to acquire a notion of accounts, management of agricultural
operations technology and profit.

7.2.1. Promotion of farmers organisations and strengthening of producers capacities

275. The NAP and SPAT put the peasants and their rural enterprises at the centre of their
preoccupation and are based on the conviction that effective transformation of Rwandan
agriculture should be based on social capital of the rural areas and it should give value to the
most important resource of the sector which is the producers and their organizations. Participative


                                                                                                  43
workshops have revealed that each district has tens if not hundreds of village organizations. The
village organizations are increasing and turning professional at the level of sectors districts and
provinces. It is mostly in the Northern provinces that the level of village organizations takes a
large part. Some unions and federations have existed for longer them 10 years, indicating
structural stability in rural zones and continuity in the management. MINAGRI expects to profit
from the dynamic existing movement and is promoting organization of agro-livestock keepers and
associations.

276. The SPAT plans technical support, logistics and finance to OP, mostly in the provinces
where rural population is still relatively weak. It concerns mainly the provinces of Kigali –Ngali,
Umutara, Kibungo, Kibuye and Gikongoro.

277. Considering the very important role of women in agriculture, MINAGRI has objectives for
actions of agricultural development benefiting both women and men. For the unions IMBARAGA
and INGABO, operating in 7 provinces of the country the representation of women is between 40
and 60% of their members, This situation opens door for effective achievement of this objective.

278. MINAGRI will actively support formation of base organizations and federations of OP. This
strategy is particularly an indication in the areas where efficient intervention requires constitution
of critical mass. Such is the case to be faced mainly to answer the urgent question of
rehabilitation and extension of anti erosion plans and family operations on sloppy basins,
management of swamps and river beds; supply of farm inputs, technical training,
commercialisation of agricultural products.

279. The SPAT will equally support the participation of associations of economic interest around
economic groups organized in, around commodity chain inter professional networks and putting
producers together water other professionals in the channel being considered. This strategy
important for the development of new commodity chains in general, and for the rationalization of
the made of management of collective farms (tea, rice, coffee etc.) and the development of
commodity chains for new crops, in particular.

280. For the period 2005 – 2008, MINAGRI recommends an intensive dialogue with the village
organizations and promises participation of producers organisation in different plat - forms of
coordination.

281. MINAGRI, in direct collaboration with its partners, will formulate a new policy of
popularisation, which will give an essential role to village organizations for benefits of services
close to producers. It has been shown shat a certain number of OP have already developed
actions of constructive advocacy and deliver various types of services appreciated by their
members. In order to prepare its new policy of extension, MINAGRI in collaboration with local
authorities MINALOC, IMBARAGA and the national network of village organizations of Rwanda
(ROPARWA), will organize contacts with the OPS operating in districts. Considering the diversity
of producers organisation, the objective of this exercise is principally identification of POs, which
are strongly engaged in delivery of services to their members. It is such organizations which shall
play an essential role in supply of farm inputs, rural innovation, support advices to producers and
organization of marketing of agricultural products.

282. In dialogue with the OPS and local authorities, MINAGRI proposes to create a network of
peasant trainers in all sectors and cells. These peasant “agents” will carry out innovations,
organize demonstrations and will play a role in the monitoring of the agricultural sector.

283. Furthermore, the actions for the period 2005 – 2008 will concentrate on training of local
village organization by specialized agents of OP and on progressively giving responsibility to the
later to manage functions of giving advice to producers, basing on requests form members of OP.
MINAGRI is conscious that the profession develops risk of OP alienating their base members.
Particular attention will be given to the quality of services rendered and to the level of satisfaction



                                                                                                    44
of OP members, shown by subscriptions to OP in question. Previous minimum contribution
should be give by the beneficiaries.

284. In the process of professionalisation of OP, MINAGRI proposes to pray a role of being a
partner as well as facilitator. Basing in the Principle of subsidiary MINAGRI encourages
international collaboration between civil society organizations the experiences of international
partnerships existing show that this model allows unions, federations and Rwanda syndicates for
professionalism. The projects in place (PROPARWA/PIFA, support projects/IMBARAGA,
INGABO, BAIR, FOR and others) financed by the Netherlands cooperation and ACDI, will follow
in the next years.

7.2.2. Reform of proximity services to producers and rural innovation

285. The expected agricultural profile in 2020 necessitates a profound change of the extension
mechanism in order to respond to the needs and precise requests from the producer communities
in an institutional context based on decentralization, professionalisation of actors and specific
needs of each commodity chain.

286. The new mechanism will be inspired by the new extension policies based on.

    (I) Participatory development and dissemination of technological options specific to each
               environment as well as training and information to producers.
         (iii) Development of own capacities of peasants through training of peasants innovators
                    in the OPS. This training will be carried out from “apprentice ship. Fields”,
                    research action to develop through an investigation spirit.
         (iii) Participatory research based on participatory definition of producers needs and which
         associate the research, support advice and the producers.

287. The mechanism will be carried out giving priority to the most competitive productions,
according to advices of PAN with regard to the selections in district plans, of those priority
productions which will be the air of public services support.

288. The proposed actions in this area will start by elaboration of a new policy of support advice
and of participative research which should result in the restructuring of popularisation service and
putting in place a plan of action A/C adapted to the new agriculture policy and or the coordination
between central and provincial departments will be carried out with the objective of reinforcing
technical capacities of produced and to respond to priority request from the communities. A policy
of support advices to produces will be elaborated during the year 2005 as well as a strategy not
communication in the rural areas.

7.2.3 Promotion of Research for Agriculture and Livestock Development

289. Actions of research for development will be about public services’ capacity building as far as
support to intensification of crop and animal production is concerned. This particularly concerns:
(i) increase in the foundation and basic seed production capacity, as well as improved species of
cattle by ISAR and SNS (laboratories for in vitro tissue culture, capacities to meet the demand in
quantity and quality); (ii) National capacity building regarding crop protection ; (iii) perfecting
agronomic techniques adapted to different agro-climatic zones, especially with regard to
irrigation, soil conservation and fertilizer application ; (iv) perfecting adapted, resistant and highly
productive cattle crossbreeds, appropriate prevention (prophylactic) and processing plans, as well
as livestock production systems, technically and financially performing and environmentally
sound.




                                                                                                     45
7.2.4 Rural financial systems and agriculture credit development

290.The government orientation position for the agricultural sector consists of increasing the
investments in the sector from 8.3 to 14.7. billion RWF in the first phase of 2004 – 2006 in a way
to stimulate sufficiently the private sector This should progressively rise during the second phase
and the government contribution in the sector will reduce form 14.7.To l0.4 million RWF from
2006 – 2010.

291. It is in this perspective that the sector strategy puts accent on the role of micro-economic
activities by participants in agriculture development. The finance sector should to this effect play a
central role in savings mobilization to finance the sector by the classic type of credit and by micro
finance.

292. Currently the role of the financial sector in agricultural sector remains very marginal and
does not represent more than 2.3% of the total credits in the economy. Some participants in the
dynamic financial sector for agriculture in 2003 were UBPR to the extent of 1.5 billion RWF and
BRD with 913 millions representing 11% and 27% respectively of port folio of these institutions
the contributions of the commercial banks remain weak.

293. The micro finance institutions have developed but their technical capacity is very weak.
From 292 institutions registered by BNR, only 17 had obtained approval and 8 were in the
process of being approved. The contribution of micro finance to agricultural credit is very low and
does not exceed 5 % of the total financing.

294. For the private sector to participate in agriculture, a particular attention should be put on the
poor who constitute a large part of produces and consumers of agricultural products they
therefore has need to access to financial services, not only for their current consumption, but also
to acquire the agricultural inputs and other financial and social services.

295. A strategy to create financial services in the neighbourhood and assure the development of
the agriculture credit should be developed through the following actions:

   Elaboration of a study on agriculture credit problems and putting in place agriculture
    guarantee fund
   Encouragement of the banking sector to intervene in agriculture through a close dialogue
    and services of credit to create a partnership and continued exchange of information on the
    agricultural sector.
   Mobilization of credit lines for agriculture projects.
   Support to create micro finance institutions at provincial level
   Reinforcement of financial capacities and mechanism of management of those institutions.
   Negotiations witch different partners to harmonies the facilities and conditions of loans given
    to farmers
   The training on the agriculture credit and supervision of businessmen on the differentiation of
    financial products to facilitate the choice of the credit type suitable for their agricultural
    activities.
   Integration of refinancing of these institutions of micro finance among the eligibility criteria in
    the agriculture guarantee fund.

296. This programme will contain four sub programmes:
                    (i) creation of a conducive environment and promotion of entrepreneurship
                    (ii) promotion and development of commodity chains,
                    (iii) transformation and competitiveness of agricultural products,
                    (iv) rural infrastructures for support to producers.




                                                                                                    46
7.3.    Promotion of commodity chains horticulture and development of agribusiness

7.3.1 Promotion and development of commodity chains and horticulture

297. The criteria of choosing the commodity chain takes into account the importance of potential
production and intensification, generation of revenues in the national as well as regional and
international market possibilities of transformation conservation, and storage.

298. It is proposed that during the year 2005, emphasis will be put on the promotion in a holistic
the commodity chains of tea and Rice. Other commodity chains to be promoted are coffee,
maize, beans, wheat, oil crops, mainly soybean as well as fruits and legumes. The organization
actions and preparation and expansion of those chains will equally be undertaken, in way to put
together all the required conditions for their development during the following years. The
accompanying actions (inputs, seeds, research, and protection of crops) are equally developed in
this document.

Specific Action for the commodity chain tea

299. The planned objective for tea is to attain a production of 39000 tons of black tea in the year
2010. For this to be attained, it is envisaged to carry out she following actions;

      Intensification in view of multiplying by 3 the yield of green leaf from now to the year 2010.
      (Fertilization, new varieties which are more productive, better extensions services to
       producers and their associations
      Improve the quality of green leaf from 67% to 80%
      Establish a tea factory at Mushubi and Nshili
      Fellow up the privatisation programmer of 8 factories of OCIR Tea
      Reinforce the partnership in research with ISAR (put in place a laboratory of culture and
       tissues in vitro, research of new varieties etc).
      Put in place specific actions of popularisation on the tea (partner ship with productive
       associations, partnership with the Banques Populaires for the credit facilities of inputs.
      Diversify the products put on the market (black tea, green leaf etc).
      Carry out promotion of Rwanda tea in Rwanda and outside.

Specific actions for the commodity chain Rice

300. (ii) strength en research on varieties especially highly productive varieties, with short cycles,
to produce 2 harvests annually

(iii) Strengthen the capacity of producers associations in order to acquire knowledge of inputs
supply chains. These aim at elimination of\rice imports and coverage of national needs as well as
the realization exportable surplus. The assumptions within the framework of this action plan are
based on continued development of rice schemes in order to attain 11.800 ha in the year 2009
and average yields of 5 Tonnes of paddy rice/ha so as to produce 40,000 tonnes of milledrice in
the year 2009. It is in this framework that the following actions shall be carried out:

      Mobilize the supplementary funds for development of new rice perimeters so as to attain
       11.8000 ha developed area in the 2009.
      Reinforce the capacities of associations in the management of the agricultural production
       time schedule , water management, take charge of extension personnel based on regional,
       successful experiences in intensive rice production systems.
      Expedite the privatisation process of rice processing units.
      Establish incentive measures to the private sector for installation of new rice processing
       units.




                                                                                                        47
Specific actions for the maize

301. These aim at increasing the yield and production of maize with a view of increasing demand,
following changes in habits of eating habits. It is planned to double production and to attain
160.000 in the year 2010.

302. It is in this framework that the following actions will be undertaken.
  Reinforce research in varieties in view of improving the range of avail able varieties;
  Support the private initiatives for taking in charge of the commodity chain (organization of
     produces, supply of inputs)
  Put in place measures to promote maize growing by rotation with Irish potatoes in Ruhengeri
     and Gisenyi zones to avoid problems of monoculture of the Irish potatoes;
  Promote partnership with ISAR, popularisation departments, the private sector and producer
     organizations for better transfer of technologies
  Facilitate the private sector and the OP to get access to the market offered by public
     departments and humanitarian organizations in the sub region
  put in place mechanisms aimed at promoting changes in food habits of Rwandans and to
     increase the share of maize and of its derivatives in food rations.

Specific actions for the commodity chain wheat

303. These are included because of contributing to reduction of importations so as to attain
production of around 39000 tons in the year 2010. It is in this frame that the following actions
have been developed.
  Provide support establish flour mills in Gikongoro and Byumba and launch production in
    these regions
  Reinforce the research program on wheat suitable for bread making.
  Offer facilities to the private sector in view of ensuring pattern ship with producer
    organizations for availing inputs and supervision of production.
  Support the training of local bakers in view of promoting consumption of bread and other
    products from wheat flour. Promote food technology programs aimed at giving maximum
    value to wheat flour.

Specific action for the commodity chain of Irish potatoes.

304. These will allow to satisfy national demand, mainly by increasing yields. It concerns in
particular;
  Reinforce the diversified research of varieties, improve the quality and the productive
     potential in general;
  increase the production capacity of seeds to grow (we presently have 30% of natural needs)
     in view of satisfying the national and sub regional market.
  Support profession of production of commercial seeds and guarantee the quality.
  Reinforce the commercial capacities of organizations of producers kind commercial
     participants in view of guarantying regular supply and good prince to producers;

Specific actions for the beans commodity chain.

305. These aim at increasing production and the yields of this crop which remains of great
importance in Rwandans’ food, notably as regards proteins. Thus, the following will be
undertaken is:
     To develop research programmes in order to improve the quality of the climbing bean
       seeds (early maturing, colour, productivity etc.)
     To provide increased availability of support sticks via accelerated development of agro-
       forestry
     To promote cultivation in rotation with maize or potato.




                                                                                             48
Specific actions for oil crops

306. These are produced to contribute in reduction of chronic deficit in lipids. The interventions
will be concentrated on soybeans with diversification by the promotion of sunflower and
groundnuts.
  Increase the production capacity of good quality seeds and of inoculation for soybeans
     (Rhizobium)
  Develop programs of development research on the mineral fertilization in order to increase
     the production potential even in regions having acidic soils;
  Support the development of transformation units of soybeans into flour and other derived
     products(milk and Tofu)
  Make the consumption of products based on soybeans popular

Specific actions for the Coffee commodity chain

307. The aim is the production of 37,000 tonnes of green coffee by 2010 of which 60% should be
fully washed coffee.

308. Actions for promotion of coffee commodity chain will target the increase of both quantity and
quality.

a) With regard to quantity, the following is planned:

     Intensification and improvement of agronomic techniques ( regeneration size, mineral
        fertilization, fight against diseases…)
     Replacing old coffee trees, planting new productive and disease-resistant varieties (
        production of 69 millions plants by 2010)
     Strengthening research on new varieties and fight against diseases
     Reorganise the extension system by establishing 5 coffee-growing areas
     Support to associations of coffee farmers ( easier access to inputs and materials)

b )Regarding the quality

     Increase quantity of standard coffee ( hulling centres and access to credit)
     Increase the quantity of fully washed ( aiming at 60% fully washed coffee, setting 107
        cleaning stations with a capacity of 200 tons/year of green coffee by 2010)
     Carry out marketing for Rwanda coffee ( search for market, organizing and participating in
        fairs and exhibitions)
     Maintain quality control
     Promote local consumption of Rwanda coffee

309. The targeted objective for horticulture is to boost the production activity on a sustainable
basis. This supposes putting in place of an appropriate and sustainable airfreight mechanism;
technical improvement of production ; improvement of the organizational framework and
professionalization in the exports sector.

310. From a technical point of view, the actions to be carried out relate to: putting in place, within
the extension framework , of a specialized service for the training of supervisors, the proximity
environment (conditioning fields and centres) with regard to production standards, quality and
packing.

311. Institutional support will be provided to exporters with a view to a better organization and
professionalisation of their profession, especially concerning permanent market prospecting
(keeping pace with commercial innovations); Continuous promotion of Rwandese products on the
external markets; rational and efficient organization of export; and very strict quality controls.




                                                                                                   49
312. It is envisaged to cooperate with other concerned Ministries, with the view to put in place
appropriate support infrastructure and equipment, particularly establishment of an adequate cold
chain, starting with the rehabilitation of Kanombe Airport’s cold rooms.

Specifications for the milk commodity chain

313. The development of the milk field will be closely linked to the action of the improvement of
cattle performance as well as modernization and intensification of its production. The overall
objective is to reduce the number of cattle from the current number of 991,000 heads to 703 000
in 2020 , while increasing milk production to cover the needs estimated at 180 litres per inhabitant
instead of the current 12 litres . This requires important genetic improvement, which will be based
on crossbreeding activities through artificial insemination, embryo transfers and importation of
pure breed cows . The following are the working assumptions:

     The current livestock is composed of 86% local breeds, 13% of crossbreeds and 1% exotic
        pure breeds.
     The proposed breeding process is 5% in year 1 and 2% for the following years. At the
        same time, 18% of the livestock of local breed will be eliminated and be used to provide
        meat to the market. This will reduce the local cattle to 305 000 heads in 2020.
     The crossbreed cattle which is currently 13% of the population will reach 434 000 heads in
        2020.
     Imports of pure breeds will continue at the current level of 500 heads/year up to 2010. With
        natural increase this category will reach 23 000 heads in 2010 as compared to the
        current number of 9 800 , in order to reach the objectives in animal production.

314. The expected total milk production is 2 240 million litres, which corresponds to an average
production of about 3 000 litres of milk per cow, which represents an average performance of 10
to 15 litres of milk per day and per cow.

315. Necessary support with regard to animal health will be the organization of a system for
providing veterinary services and artificial insemination which will be gradually transferred to the
private sector, and encouraging professional organisations to put in place, in the main milk
centres, adequate systems for collecting and processing milk, based on quality and hygiene
criteria in conformity with good practices, especially regarding cold chains and laboratories for
quality control.

Specific actions for the meat commodity chain

316. The development of the meat commodity chain will be carried out through intensification of
production techniques, promotion of modern investments for abattoirs, processing, conservation
and transport of produced meat. Effort will also be put on diversification so as to produce goat
meat, pork, beef, chicken and other kinds of meat. The objective is to maintain the growth rate of
meat production between 14 and 18% per year so as to increase the availability from 5 kg per
person and per year in 2002 to about 34 kg per person and per year in 2020.

317. Specific actions consist of promoting the financing of investments in intensive livestock
farms (cattle, goats, beekeeping, etc.) as well as slaughterhouses and modern equipment for
transportation and conservation through the mechanism of an agricultural guarantee fund.

318. The promotion of a veterinary supervision service will be carried out through supporting
initiatives of livestock keepers organizations, private veterinary doctors, as well as farmers or
organizations capable of providing proximity services to other livestock keepers.




                                                                                                 50
Specific actions for the commodity chain of hides and skins

319. The development of the meat commodity chain will lead to the intensification of activities in
related to hides and skins.

320. Specific actions consist in promoting hides of good quality and leather work by craftsmen
and small SME/SMIs, through training, financing and institutional support to professional bodies
involved in these processes.

7.3.2 Transformation and competitiveness of agricultural products

321. Diagnosis has revealed that transformation of agricultural products is an important factor in
competitiveness in the sense that it improves intrinsic quality of products, and helps in diversifying
and presenting them. Indeed competitiveness of a product depends on the type, quality and cost
price, its stability and marketing in approaching and making customers faithful. Productivity is an
important factor of the competitiveness agricultural products .

322. The strategy adopted is the development of agro business through promotion of
competitiveness of Rwandan agricultural products and the creation of a conducive environment to
investment in agriculture.

323. Actions and measures intended to increase productivity are presented in the program that
tackles the development of systems of sustainable production. These are mainly the investment
in increasing soil fertility and improvement of proximity service delivery (availability and increased
use of inputs, agronomic research and reformed extension - advice and demand-driven).

324. The second series of actions for increasing productivity are related to infrastructure
development. The State should invest in basic infrastructures (electrification, water supply, roads
etc.) in order to create conditions that are conducive to the establishment of transformation units
by the private sector (coffee washing stations, tea factories, flour mills and others, construction of
markets, ICT and telecommunication etc.) It is also envisaged that the State should develop
important infrastructures and later transfer their management to the private sector (factories,
transformation units, cold storage at the airport to attract foreign investors for promotion of
exports) Private businessmen will be encouraged to invest in refrigerated lorries to collect
perishable products from remote areas in order to have in place an uninterrupted cold chain.

325. Searching for and penetrating new markets are critical in agribusiness and competitiveness.
Therefore promotion activities should be carried out to identify niches, certification and respect to
the standards required by markets, development of the fair-trade model. Measures should be
taken as well to benefit from AGOA. Rwandan embassies abroad should play a big role in the
promotion of commerce while the Government is to encourage organizing exhibitions at national
and provincial levels, and the participation in international fairs abroad by Rwandan private
businessmen.

326. The central role of the Government is to set up a political, social, economic and legal
environment, which is attractive and conducive to the private sector in such a way that
entrepreneurs fully assume the risk of their investment and get benefits from it. Support from the
public sector will mainly consist of funding studies in neighbouring countries prior to creation of an
enterprise, in agronomic research, pilot trials, market studies, and search for information, support
to investment (bonus credit, investment code, fiscal advantages).

327. It is in this context that the following is to be conducted:
         (i) CAPMER interventions will be enhanced
         (ii) Investment code must be updated to be made more attractive, by considering
                   suggestions from different stakeholders (RIEPA, Rwanda Private Sector
                   Federation, Inter-professions etc.)



                                                                                                   51
        (iii) Cooperation with partner countries in agribusiness is to be fostered
        (iv) An information centre with e-commerce facilities will be created by collecting and
                disseminating information about business opportunities and agricultural markets
        (v) Incentive measures for promoting SME/SMI should be developed (training potential
                investors in drafting projects to be presented to the bank-CEFE approach or
                others, creation of an incubation centre for innovations and promotion of
                agricultural enterprises).

7.3.3. Rural infrastructures for support to producers

328. Diagnosis of the sector has revealed great lack of infrastructures to support production,
transformation and marketing of agricultural products.

329. The strategy for this sector will be based on:
             Implementation of local development plans plus mobilization of resources with
                grassroots communities,
             Mobilization of financial resources through the process of strengthening the CDF,
             Development of basic infrastructures for the development of networks,
             Total involvement and enhancement of capacities of the grassroots communities
                in management and maintenance of infrastructures.

330.The following are specific objectives planned for the period from to-date to 2020:
             The good road net work will pass from 0,54 km/Sq Km in 2000 to 0,60 Km/Sq Km
                in 2020.
             Annual electricity consumption will pass from 30 Kwh/inhabitant in 2000 to
                100Kwh/inhabitant in 2020.


331. The SPAT will conduct long term actions, however for the period 2005-2008 will be devoted
mainly to the following actions:

In the area of Livestock:
     Increasing watering points in areas of strong water deficit
     Enhancing actions for the development of local markets for agricultural and livestock
        products
     Setting up para-veterinary services
     Development of milk collection centres for milk collection and cold storages among farmers
        associations.

In the area of road infrastructures:
      Development and rehabilitation of feeder roads
      Mobilization of beneficiaries (communities) to ensure maintenance of the infrastructures by
         farmers organized around big production networks or transformation units.

In the area of marketing, storage, conservation and transformation
      Development of infrastructures for storage, conservation and the cold chain to facilitate
         exports
      Increasing the number of coffee washing stations to increase production of speciality coffee
      Preparation of a plan for rural electrification

7.3.4 Creation of a conducive business environment and enterprise promotion

332. One of the components of the strategy concerns capacity building of the service providers
(SP). The SPs who have most needs for capacity building include: local NGOs, associations
federations, young research departments or private individuals who regularly offer or have the
possibility to offer proximity goods or services to beneficiaries. It is often a matter of delivering



                                                                                                  52
services of studies, diverse support (trainings, management support, etc.) or supply of inputs.
This component will also concern key public institutions such as research, extension, services for
competitiveness and agribusiness promotion, laboratories, pre-basic seed production and
animals of appropriate genotypes, as well as agricultural training institutions.

333. The second component of this strategy concerns privatisation of public bodies or public
services, which, by their nature, have a quite attractive character for the private sector. This
concerns particularly the pursuit of actions currently underway with regard to privatisation of
public tea and rice entities, inputs supply (manure, improved cattle, pesticides, etc.), seed
multiplication on some segments of the seed commodity chain, some training and supervision
activities, fertilizer marketing, etc. This option will lead to the state’s non-ambiguous
disengagement from these sectors in order not to endanger the emergence of private initiatives.

7.4.   Institutional development

334. This programme is comprised of three sub-programmes: (i) the legal and regulatory
framework; (ii) Reforms and institutional support to public services, and (iii) Coordination and
Monitoring and Evaluation of the agricultural sector.

7.4.1 The legal and regulatory framework

335. In order to be able to accomplish its mission, Minagri will conduct , during the year 2005, a
review of its organizational structure (the Ministry’s restructuring) and review and update
agricultural legislation. Among these, the new land law will have to find the implementation texts
and different laws in the areas of inputs, sanitary prevention, natural resources management, and
encouragement of the private sector’s enterprise and professionalisation will be reviewed and
updated where necessary.

7.4.2 Reforms and institutional support to public services

336. Minagri will also carry out a series of reforms with regard to both its organisation and from
the point of view of its functioning.

337. Reforms will particularly affect the extension services, public or para-statal bodies under the
tutelle of Minagri, etc. with the view of adapting those structures to the new missions. These
reforms will be carried out based on the institutional analysis carried out in 2003 and whose
recommendations will be the subject of an implementation plan within the framework of the
support envisaged for the period from 2005 supported through external funding. Three
development partners have already expressed their willingness to support MINAGRI in this
fundamental action.

7.4.3 Coordination and Monitoring and Evaluation of the agricultural sector

338. Decentralization, disengagement of the State from productive sectors and promotion of
diversified interventions in agriculture will lead Minagri to the reinforcement of its planning and
coordination functions.

339. The following are the urgent actions planned:
       (i) define a coherent and integrated planning system
       (ii) Develop a strong statistical base providing an update and accurate vision of the
                sector
       (iii) establish a dynamic and participatory system of monitoring-evaluation and an
                information system constructed on the basis of integrated database
       (iv) recruit and train a personnel in charge of piloting the sector
       (v) putting in place an environment of dialog with producer organizations and networks,
                from private sector and NGOs



                                                                                                 53
         (vi) develop support actions in capacity building ( training, information, technical
                 assistance, and various support) with communities and networks of producers
                 from private sector and NGOs.

340.In this context, new technologies of information and communication (ICT) will be involved to
support traditional functions of piloting, but also a new form of communication both internally and
externally within Minagri.

341. In addition to tools established in communication and monitoring-evaluation of the sector,
Minagri will need to effectively apply the “rural development cluster” and inter-ministerial or inter-
sectoral committees to ensure coordination of all stakeholders.

VIII.   CONTRIBUTION OF SUPPORT SECTORS TO AGRICULTURAL DEVELOPMENT

342. Effective achievement of priority objectives and actions at various PSTA strategic axes
closely depend on the contribution of the support sectors described here under:

8.1.    Governance and local development

343. Decentralization process has transferred responsibility to local governments and has created
a situation of reducing the direct relationship between MINAGRI and producers. Mechanisms and
modalities adapted to the new situation will be established so that requests from producers and
grassroots receive the support contained in the action plan of the ministry.

344. The beneficiaries` needs collected in participatory workshops and stored in a data base will
serve as a mirror to all stakeholders to facilitate use of that information in identification, funding
and monitoring of agricultural micro projects initiated by grassroots communities in a
decentralized way.

8.2.    Environment, water and land security

345 Given that all environmental problems draw the interest of all agriculture sub-sectors,
attention to this issue will be integrated as crosscutting in all actions. Anti erosion fight, promotion
of corridor cultivations, rational management of pastures and intensive cattle raising systems,
promotion of organic manure, biological methods of cultivation and agro-forestry.

346. Special action of rational water management will be developed in terms exploitation,
conservation and storage. A special plan will be devised for high risk draught areas Bugesera,
Umutara) and for fragile echo systems such as marshlands.

347. MINITERE will implement enactments for the application of the new land law. Minagri will
have to bring a contribution to this process given the importance of securing land on the
intensification and diversification of production. Working groups will be established between
concerned Ministries for implementing selected activities from 2005.

8.3.    Education and scientific research

348. Minagri will rely on the education sector to integrate at all levels, basic concepts of
preserving natural resources, valorising the agricultural profession and acquisition of basic
principles for safe, profitable and sustainable agriculture. The courses could be introduced as part
of the subjects of science or environment.

349. Schools should serve as demonstration centres as well as models for inputs production in
the case of secondary schools with a boarding house at least. The ministry of Education could, in
cooperation, with grassroots communities, organize in the frame of functional literacy, training




                                                                                                     54
and extension modules on the basis of “Guides” and other appropriate materials. Harmonization
of literacy actions will be sought in implementing every development project piloted by Minagri.

350. Universities and colleges (faculty of agronomy of UNR, KIST,IRST,ISAE etc. should be
involved in the training and extension of new agricultural techniques.

351 A special module for adaptive research centred around the SPAT priorities will be embedded
in ISAR action plan. An action of improving agriculture and veterinary institutions will be
conducted and supported.

8.4.   Commerce, Industry and handicrafts

352. Commerce, industry and handicrafts play a key role in food transformation and adding value
to local and external consumption products.

353.Food transformation centred around food quality helps getting products with high added
value matching the taste and the preferences of consumers. To get there, there is need for
agricultural strategies centred around the following three axes: 1.improvement and capacity
building of the institutional framework; 2. promotion of agribusiness through transformation of
agricultural products; 3. search for product preferences and quality improvement and stimulation
of active participation of private sector.

354. Improvement and institutional capacity building will be achieved through revision of the legal
and regulatory framework.

355. The latter must first create conditions for food products safety. A study is to be conducted to
establish an agency or another institution in charge of food security and food safety standards.

356. Such a structure should be responsible for the coordination of activities, setting and
controlling standards in matters of national food safety, certification of food industries, programs
of education on good cultivation practices, danger control for food, implementing activities related
to food products like the National Bureau of Standards, reinforce national capacity namely of the
National Office of Standardization, develop national laboratories to carry out specific tasks

357. Promotion of agro business is seeking improvement of added value of specific net works in
order to serve internal and external markets. Quality starts with production, good farming
practices should be introduced during production to avoid taking late corrective measures, after
having suffered losses.

358. Minagri is expected to put in place from 2005, a centre in charge of promoting agribusiness
and competitiveness. The centre will: ensure training of producers` associations ( book keeping,
good farming practices, use of inputs and modern conservation techniques); putting in place a
code of farming practices, devising certification and regulation amongst associations: develop a
program for the promotion of small-scale food industries, develop a program for standards of
international food security for small food industries (HACCP) by associating universities and
research institutions ( KIST and others); develop institutional support for small food industries;
promoting cooperation between Minagri and institutions involved in food transformation like KIST,
ISAR, NGOs etc., mobilize people working in food transformation to share necessary information;
encourage the promotion of cultivation of high value crops , initiating pilot programs for
transformation, develop marketing locally and abroad, develop incentives to attract investment in
agribusiness, improve access to credit, strengthen partnership between public and private sectors
in matters of basic investment , marketing etc.

359. The considerations above indicate that the sector of commerce, industry and handicrafts is
expected to play a key role to foster the implementation of PSTA. Further to what is indicated, the
following complementary actions are expected: 1 promoting services for access to information,



                                                                                                 55
access to training and local, regional and international markets; 2. develop, though appropriate
institutions, new transformation technologies, communication and marketing techniques, 3. set
international standards in matters of food safety and food hygiene, 4. foster networks and
associations of agribusiness with other regional and international organizations, 5. promote
initiatives and activities for the development of handicrafts and industry.

8.5.   Health and social protection

360. The sectors of health and social protection will cooperate more in the framework of the
SPAT in a number of areas: 1) the nutritional status of the populations, the nutritional surveillance
of children, pregnant women, sick people ( obesity, malnourished, HIV/AIDS etc.,2) food for other
vulnerable groups (orphans, old people, destitute, etc.)

361. Appropriate measures are to be taken for mainstreaming people living with HIV/AIDS and
their protection by ensuring health prevention of food through control of quality and the place for
food storage and transformation.

362. Mechanisms for general monitoring of the food situation in the country are to be put in place,
and ensure that tools for correct harvest forecast and quick warning system are in place to detect
risks for food deficit, catastrophes so as to prevent famine and rescue people under threat.

8.6.   Infrastructure of transport and communication (ICT)

363. Cooperation is needed between MININFRA in order: 1) to rehabilitate roads, 2) for
promotion of transport of goods , easing administrative constraints and diversification of routes
and corridors for regional and international trade, 3) dissemination of new information and
communication technologies in rural areas and to the professionals of the sector.

8.7.   Financial sector

364. For the financial sector to play its role of as investment catalyst, particular efforts must be
made by the Government and financial institutions to reinforce the financial sector to enable it to
respond to potential requests for agricultural credits. Reinforcing the financial sector will be
achieved through diversifying tools and financial products such as the creation of: 1) a market of
assets for local mobilization of long-term resources, 2) a company dealing with assets related to
profitable agricultural projects, 3) a leasing company to finance equipment and necessary tools to
modernize agriculture, and 4 ), a system for agricultural credit guarantee for which a study for its
establishment has just been completed.

365. The role of financial institutions as regarding agricultural credit should be clarified to facilitate
dialog with stakeholders from the agriculture sector. Thus, proximity financial services should be
developed through establishing appropriate regulation, strengthening of micro finance institution
capacities, and external mobilization of funds for the re- financing of those institutions. The BRD
initiative should be given support so as to stimulate micro finance initiatives in agriculture.

366 UBPR has got a crucial role to play in funding agricultural SME/SMI in rural areas. On this
issue, agreements between Minagri and UBPR will be set to channel the lines of credit to be
mobilized. UBPR will act as an intermediary to facilitate the PME/PMI to benefit from the
agricultural guarantee fund.

367. Commercial banks will be encouraged to support BRD in funding agribusiness. Considering
its mission, BRD will foster funding newly emerging enterprises whose financial needs for growth
and turnover will be borne by commercial banks.




                                                                                                       56
PART THREE:           ACTION PLAN AND INDICATIVE FINANCING PLAN

IX       LOGICAL FRAMEWORK AND ACTION PLAN

368. The logical framework of THE SPAT and the comprehensive action plan are presented as
appendices 1 and 2 . This presentation illustrates the harmony between objectives, results and
actions proposed.

9.1.     Content of the action plan

369. The SPAT action plan for 2005-2008 is presented as appendix II. It presents the different
programmes, specific objectives, expected results, actions to be carried out and the responsible
actors in charge of implementation of the actions.

9.2.     Implementation modalities

9.2.1 Coherence and articulation challenges

370. There is need to establish coherence of the SPAT with regard to the following:

      With existing and prospective logical frameworks, namely the Logical Frame for the Fight
       against Poverty and the Rural Development Strategy (SDR). The government is finalizing a
       strategy for rural development with the World Bank, and Minagri will be a stake holder. The
       task force to be put in place will act in such a way that SDR considers strategic elements and
       priority programs and that necessary coherence is insured. Besides, PSTA will have to
       consider the close relationships between mandates of MINAGRI, MINALOC, MINITERE etc.
       and must develop harmonization framework of their different strategies. That exercise is
       expected to be completed before the end of the SPAT transitional year 2005.

      With other programs and projects. Those are the projects identified in the support to private
       and public sectors on the one hand, and projects identified in local development plans on the
       other. It will be important to exploit the reports from cooperation workshops at grassroots and
       update development plans of districts to better include needs and requirements of agriculture
       at the local level.




                                                                                                   57
Diagram 2. Toward a local dynamics for agricultural development

                                  Accompanying measures
        -   Supply in inputs
        -   Micro-finance and agricultural credit
        -   Animal health and crop production
        -   Research and Development and Support – Advice
        -   Promotion SME/SMI
        -   Infrastructures and Development
        -   ……………………………………




       Crop Production                                             Animal Production
-   Crop Production                                          -   Animal Restocking
-   Export crops                                             -   Cattle
                                        Integration
-   Cash crops for internal                                  -   Small Ruminants, Poultry,
    markets                                                      Rabbits
-   Crops for the niche markets    Agriculture - Livestock   -   Fisheries and Fish farming
-   Horticulture                                             -   Bee keeping
-   ……………                                                    -   …………..




                          Water and Soil Conservation and NRM
                   -    Erosion Control and Hillsides development
                   -    Integration of agro-forestry trees in crop systems
                   -    …..




              Farmer Organisations and professionalisation of producers
        -   Promotion of producers ’organisations
        -   Promotion of nterprofessional organisations by commodity chains
        -   Consultation with public and private sector
        -   Technical training
        -   Methodological trainings (organisation, management, ….)
        -   ………………….

371.During the exercise of making the SPAT coherent , five major challenges were identified and
are described in the following paragraphs.

372. Mobilising and coordinating all stakeholders in the agricultural sector: The national
agricultural policy clearly indicates that development of this sector is largely dependent on the



                                                                                              58
private sector. Transformation of agriculture sector requires a great number of actors ( peasants`
organizations, private sector, local authorities, public services, NGOs…) It is this fundamental
characteristic that widely explains why approaches in the past, dominated by production means
belonging to the State and centralized planning, did not succeed. Transformation of the rural
economy needs joint efforts from private, public sectors and civil society. The first challenge is,
thus , the promotion of exchanges and cooperation between the different stakeholders and the
formulation of strategies that integrate different interventions allowing the various actors to play
their respective roles.

373. Coordination of technical and financial support. In the current situation, many projects
interventions in agriculture lack adequate coordination, resulting in inefficiency: Parallel existence
of different strategies, partial interventions, duplication of efforts, wastage of funds and energy,
discontinuity of reforms engaged. Taking into account these shortcomings, the Government with
partners intends to progress from the project approach to the program approach presenting the
following benefits: shared sector vision, cooperation of partners to implement a common strategy,
combination of human, logistic, and financial resources, clarification of roles and institutional
continuity. The second challenge is that of progressing toward well harmonized approaches
(ministries and donors, and having tools and mechanisms that guarantee good coordination of
planning, implementation and monitoring-evaluation of agricultural development programs.

374. Articulation of national level at centralized levels. Decentralized entities: provinces. Districts,
villages and even sectors have got to prepare their own development plans. Their policies and
strategies will get support from National documents. The guidelines for the national strategy
elaboration indicate that this is a repeated approach “since national planning starts from
decentralized strategies”. The approach of elaborating decentralized plans is based on a
systemic perception of development issues and cooperation between different actors to identify:1)
problems and their causes, 2) constraints, 3)potentials, 4)hierarchy of problems, 5) solutions to
be envisaged as well as strategies to be implemented. Decentralized entities elaborate policies
and strategies for sectors they consider as priorities. Elaboration of provincial development
sectors is based on districts development plans. The MINECOFIN guidelines underlines,
however, that development plan of provinces is neither an addition, nor a synthesis of PDC.
Analysis of provincial priority problems is needed and suggestion of actions beyond individual
districts in the aim of facilitating mobilization of resources and coordination of interventions.

375. Elaboration of the SPAT comes after the elaboration of community development plans
(PDC). In the sense that most provinces have already formulated their PDC, there is risk for lack
of interest and reluctance from beneficiaries to participate in the formulation of national
development strategies, since most activities of PDC have not been funded . The third challenge
is that of combining technical and financial support made at central level with decentralized
entities on the basis of subsidiarity principle which stipulates that development actions and
management of affairs should be conducted by appropriate actors and at the right levels .

376. Articulation of needs and financial flow to national macro-economic frame work and to the
multi-actor environment of the sector. National policies consider agriculture sector as the stepping
stone for fight against poverty. Economic growth in the primary sector should help rural
households get out of their generalized poverty. This economic growth would create progressive
development of secondary and tertiary sectors in rural areas, which could help create
employment outside agriculture. However, most agricultural activities remain at subsistence. The
agricultural development strategy should combine commercial with development orientation.
Transformation of a market-oriented agriculture must be coupled with food security and
environmental protection. Besides, in the context of fight against poverty, it is important to attend
to the fact that all social layers, especially the most vulnerable, take benefit from the economic
growth advocated.

377. The articulation of the commercial orientation to the development orientation. National
policies consider the agricultural sector as the springboard for fighting poverty. Economic growth



                                                                                                     59
in the primary sector will enable rural households to come out of their situation of generalised
poverty. This economic growth will also encourage the progressive development of the secondary
and tertiary sectors in rural areas, which will result in creation of off-farm jobs . However, the
majority of agricultural households are still in a subsistence economy. The strategy of agricultural
development should conciliate the commercial orientation with the developmental orientation. The
transformation of a market-orientated agriculture must go hand in hand with the search for food
security and environmental protection. And in addition, within the context of fighting poverty, it is
important to make sure that the different social strata, especially the most vulnerable, benefit from
the envisaged economic growth.

9.2.2 Elaboration of operational programmes and investment programmes

378. The transitional year will be devoted to formulation of priority programs, which have shown
funding willingness at the donors` conference or following the negotiations Minagri will have
started with the government and partners.

379.In this regard, the program for institutional support currently under elaboration which intends
to reinforce Minagri`s capacity, will help start the process in a relatively reasonable period of time.

9.2.3 Elaboration of sub-sector policies and strategies

380. Given the necessity of implementing innovative approaches that are consistent with the
ambitions of the sector, Minagri must revisit some of its policies and strategies together with
various action plans especially in the service of assistance and support, in participatory research,
soil reclamation and fertility etc.

381. The ministry ought to get a “gender strategy” as well that will serve as guide to actors from
public services and OP, and a communication strategy helping to improve the relationship
between various stake holders.

9.2.4 Establishment of a mechanism and system for monitoring/evaluation

382. Successful implementation of the strategy requires regular monitoring and periodic
evaluation so as to make necessary adjustments.

383. In this view, a monitoring/evaluation mechanism led by the Division for planning and
agricultural statistics in Minagri, involving all stakeholders, in accordance with modalities is to be
elaborated soon by following the monitoring/evaluation of the Poverty Reduction Strategy
framework led by Minecofin, should be established.

384. Annual reports will be made by DPS(Planning Department of MINAGRI) on basis of reports
presented by managers of different programs.

385. The strategy will be reviewed periodically in relation to that of CSLP, while relevant
indicators are to be defined and regularly revised.

9.2.5 Next steps: Elaboration of MTEF, macro-economic and financial framework

386. Elaboration of Mid term Expenditures (CDMT) for 2006-2008 and the polishing of macro-
economic and financial framework will continue on 2005.

9.2.6. Search for harmony in multi-stakeholder environment

387. Since independence the State has been playing a crucial role in the agricultural sector:
research, supplying inputs, micro finance, marketing agricultural products. The process of
economy globalisation, market liberalizations, democratisation and decentralization and reforms



                                                                                                    60
of public sector, have deeply altered the institutional landscape. These processes enhance the
progressive disengagement of the State, and emergence of other actors.

388. In the current situation, Minagri regards business men, peasants` organizations and local
authorities as partners in the implementation of PSTA.
Minagri will facilitate synergy between public, private sectors and civil society who are
development partners. Economic operators are in search for market opportunities and require
competitive products. They can, therefore, initiate diversification of production and stimulate
quality of agricultural products.

389. A well rural setting organized can mobilize populations for actions contributing to
intensification, diversification and sustainability of production systems. Public authorities play a
crucial role of in programming the implementation of agricultural action plans, which are adapted
to local reality.

390. Agricultural development is to be framed in fight against poverty and encourage economic
growth. This fight needs coalition of several forces at several fronts:

   Coalition of forces alludes to pluralism, multi-actors process, mobilization and reinforcement
    of capacities of civil society, to social dialog, partnership between public sector and civil
    society. The SPAT is strongly based on the principle of horizontal subsidiarity showing that
    public sector is stepping down for private sector, or civil society organizations.
    Different levels refer to acting at international, regional, national, provincial and local levels.
    In additional to horizontal integration of different stakeholders from the same geographic
    area, each stakeholder has to develop its vertical links. Production net works from producers
    to consumers are the examples. Development of agriculture in Rwanda depends on
    international agreements as well as organizations of producers in villages. The SPAT
    subscribes to the principle of vertical subsidiarity, which stipulates that development actions
    and management of affairs are to be carried out at the right levels. In practice, this principle
    generally results from a delegation of powers from the centre to decentralized levels.
   Multiple fronts indicate that agricultural transformation can take place only by combining
    several processes of performance improvement. The SPAT puts special emphasis on a
    number of services to be delivered to the rural area: research, extension services, supply of
    inputs, credits, marketing, and transformation of agricultural products etc.

391. Taking into account the new context, PSTA defines the role of the State especially around
the creation of conditions that are conducive to the development of the various stakeholders. For
so doing, Minagri aims at partnership with a great number of stakeholders. By so doing, MINAGRI
aims at cooperating with other stakeholders. The following table indicates the likely partners.

Table: Partners for agricultural development*

                                                         Level
Stakehold     Village/cell   Sector          Districts      Provincial      National       Internation
ers                                                                                        al

Farmer        FarmerAss      Generic FO      Producers                      ROPARW         EAFFE
organizatio   ociation       Farmer          union          FO(             A              REFON
ns                           Organizatio     Inter-         IMBARAGA,       IMBARAG        FIPA
                             ns              grouping       INGABO,         A
                             organized       Inter          BAIR,           UCORIR
                             around          professiona    FOR…)           WA(rice)
                             networks        l producers    Producers       STAVER
                                             union ( per    Federation      IAR
                                             network)
                                                            STAVER,


                                                                                                     61
                                                       Level
Stakehold      Village/cell   Sector       Districts      Provincial     National      Internation
ers                                                                                    al

                                                          IAR Inter
                                                          professional


Other civil    Community      Churches     Faith          FBO’s
society        Based                       Based
Organizatio    Organisatio                 Organisatio
ns             ns ( CBOs)                  ns (FBOs)
Private                                                   FRSP           FRSP
sector
organizatio
ns and
PPPdevelo
pment
Democratic     Consulting     Consulting   City                          National
structure      Council        Council      Consultativ                   Assembly
               CPA/CDC        CPA/CDC      e council
Coordinatin                                               OCIR coffee    National      COMESA
g structures                                              OCIR tea       Tender        OMC
                                                                         Board/CE
                                                                         PEX ONR/
                                                                         OCIRs,
                                                                         RIEPA
Research                                                   ISAR          ISAR/ISA       CGIAR
service(                                                  stations       E             ASARECA
public)                                                                  UNR/KIST      ICRAF and
                                                                         /IRST         other
                                                                         National      regional
                                                                         Veterinary    bureau
                                                                         Laboratory
Research                                                                 Independe
service(                                                                 nt
private)                                                                 universitie
                                                                         s(UNR)
                                                                         Adventist
                                                                         university
Training       Nursery        Nursery      Nutrition      Farming and    UNR
Service(       and            and          centres and    veterinary     ISAE
public)        Primary        primary      secondary      schools        KIST
               schools        schools      Schools        (EAV)          RIAM
                                                          Feminine       CAPMER
                                                          agronomy       INADES
                                                          school
Training                                   Primary        Primary and    Primary
service                                    and            secondary      and
(private)                                  secondary      schools        secondary
                                           schools                       schools
Advisory                                   Farming        DAEF           National
services (                                 service        Radio          radio
public)                                    Officer                       Dir.
                                           (RSA)                         advisory



                                                                                               62
                                                           Level
Stakehold       Village/cell   Sector        Districts        Provincial    National      Internation
ers                                                                                       al

                                             Technical                      service
                                             agent                          MINAGRI
                                                                            UTT ISAR

Advisory        FO             FO            FO               FO            FO
services (      NGO            NGO           NGO              NGO           NGO
private)
Financial       Tontines       Micro-        Cash and         Commercial    NBR/BRD
services                       finance       credit           banks         Commerci
                               services      network          Community     al banks
                               Project       Micro-           banks         UBPR
                               credit line   Finance                        Agricultura
                                             Institutions                   l
                                             (IMF)                          Guarantee
                                             Community                      Fund
                                             banks
Input sector                                                  Seed          National
(Public)                                                      companies     centre for
                                                              SNS           IA
                                                                            SNS
Output                         Fertilizer,   Traders          Traders       Traders
sector (                       pesticide,    FO               FO            FO
Private)                       etc traders   Seed
                                             multipliers

Transforma      Local          PME/PMI       PME/PMI          PME/PMI       Agribusine    Foreign
tion and        craftsman                                     Agribusines   ss units      private
commercial                                                    s units                     partners
isation

* This survey, certainly non exhaustive, presents the technical and operational partners of the
central Government and local authorities for the implementation of its Rural Development and
Farming plan.
It does not take the into PTF into account ( Technical and Financial Partners )

9.2.7. Definition of the role of different actors

9.2.7.1.       Role of the State and Public service

392.The State’s responsibility in implementing SPAT is found in the following actions (i) setting up
sub sectarian operational strategies in coherence with defined strategic orientations and in
consultation with the stakeholders; (ii)organizing a consultation with different actors intervening in
rural sector development (iii) creating a favourable environment by improving the legal, regulating
and institutional framework; (iv) promoting good governance and support to decentralization
activities and especially financial mechanisms; (v) mobilize (financial, material and investments)
resources necessary for the achievement of the operational and investment programmes; (vi) to
supply public goods and services; and (vii) the monitoring/valuation of the agricultural
development process.

9.2.7.2.       Role of the District jurisdictions.




                                                                                                     63
393. In the framework of SPAT implementation, their role will focus on: ( i ) setting up and
implementing operational and investment programmes at the regional level and local
development plans; (ii ) participate in the fitting out and management of natural resources in their
territorial scope; ( iii ) exercising the working skills in the execution of programmes and soil
management projects , local development and decentralized rural development; (iv ) excitement
of the consultation scope of the different actors intervening in rural development at local or
regional level; ( v) promoting income and employment generating activities; (vi ) Participate in the
monitoring/evaluation of the process.

9.2.7.3.     Role of grassroots communities

394. In the framework of SPAT implementation, the role of rural population and their grassroots
organizations will consist of the following elements: ( i ) formulation of needs regarding
development in relation to specific constraints and potentialities; ( ii ) participate in the
formulation, implementation and monitoring/evaluation of the operational programmes and
investment projects in which they are involved; (iii ) initiate micro- projects relating to local
development, soil management or decentralized rural development; ( iv ) exercise working skills
in projects execution ; (v ) concerted management of natural resources and their soils; (vi)
promoting employment and income generating activities; (vii) participating in the
monitoring/evaluation of the process.

9.2.7.4.     Role of professional organizations and private operators

395. This actors group includes Ridge farmer organizations, professional organization of different
production subsidiaries, Regional chambers of Agriculture and private operators. The role of this
group of actors in SPAT implementation will consist of (i) participate in formulation and
implementation of operational investment programmes ( ii) participate in funding some projects (
projects co-funding principle at grassroots level); ( iii ) participate in training ,
counselling/supporting of different actors; (iv) participate in the consultation of different actors; (v)
programmes and projects execution; (vi) participate in the monitoring/evaluation process.

9.2.7.5.     Role of technical and financial partners (TFP) and the civil society

396. This group of actors includes Regional bilateral and multilateral cooperation agencies, Inter-
Governmental Organizations (IGO) International NGO or national. In the framework of SPAT
implementation, the role of these groups will consist of ( I ) participate in political dialogue with the
Government; ( ii); participate in the consultation with the different actors; (iii) support in
developing sub- sectarian operational strategies; (iv) support in formulating and implementing
operational and investment programmes; (v) availing a competent technical assistance for
institutional and operational capacity building of the administration and professional
organizations; (vi) participate in resources mobilization for the formulation, implementation and
monitoring/evaluation of programmes and development projects; (vii) participating in the
monitoring/evaluation.

9.2.7.6.     Mechanisms for coordination and financing modalities

397. . One of the most important lessons of the 4 agricultural development decades is that lack of
coordination and synergy between rural development measures have led to significant progress
in the agricultural area. Transformation of agriculture and improvement of the situation of
peasants or farming communities, requires a set of interventions adapted to ground realities.
Isolated measures (such as introducing a new variety, setting up of micro finance or rural feeder
roads) are not sufficient alone. There is need for integrated approaches combining different
appropriate measures likely to mobilize the participation of all stakeholders in the agricultural
sector. This is the reason why the MINAGRI will spare no efforts in establishing partnerships and
making cooperation plat-forms at all levels and involve all actors in the planning and
implementation process including monitoring/evaluation.



                                                                                                      64
398. Appropriate funding modalities will be very useful to bring about changes and transform
today’s operating modes. The SPAT plans to put in place agricultural development fund that will
be managed by the representatives from different stakeholders. As shown in the chart bellow
adapting funding modalities yield a new situation fundamentally different from the conventional
financing modalities.

Figure 3: chart of financing modalities



               Government and TFP                                  Government and TFP

Financial flows     Report               Financial flows


               Service providers                                  Services providers
                    Service provision          Demand              Service provision
                                                                   And report



             Clients / beneficiaries                            Clients / beneficiaries
                    Phasing

399. To consider the gap possibilities between planning and the achievements in implementing
the strategy, scenario of progress were defined and a phasing has been worked out. Three trends
(low. medium and high) were identified. The downward trend is related to a slow progress similar
to the growth observed on the previous four years today. The medium trend is related to an action
of medium intensity as far as investment and beneficiaries mobilization is concerned. The third
trend (high) is related to high level of investment from the beginning to a maximum mobilization of
beneficiaries.

400.Three scenarios were defined on each of the trends. ( I) The first takes into account a
constant growth rate during the whole planning period (2005-2020). (ii) The second scenario
supposes two variable rates starting from 2011 to 2020. (iii) The third scenario considers one
variable growth rate increasing in 2007 and in 2011.

401. Whatever envisaged scenario, it is realistic to think that the sector’s “take-off” will be slow in
the first phase. During a period of three to five years, efforts should be concentrated on partners
and resources mobilization as well as primary investments. It is only during the second phase that
results will appear progressively in manifest and by induction lead to acceleration.

402. In the same connection, the year 2005 is considered, as a transitional period deserved to
shape the strategy and its operational tools; mobilize partners and resources; maintain effective
dialogue with grassroots communities and provide them with the necessary support, especially in
the reformulation of the Caps, and prepare an MTEF for the period 2006 – 2008and elaborate
linkages which the SPAT will have with the rural development strategy and other support sectors.
Special priority will be given to land and commercial issues.

403. The year 2005 will be devoted to testing elements of the strategy on three prior identified
commodities ( tea, rice and milk) to serve as pilot. Therefore, restoring measures already planned
on the commodity chains and especially on maize , potato and coffee will be kept on. Likewise,
prospecting actions relating to new opportunities for export crops such as pepper, maracuja,
cassava flour, banana fruit and tomato will continue.



                                                                                                    65
404. It is obvious that water and soil conservation will benefit from a special programme given its
importance. This programme will consist of two phases: an emergency plan (2 to 3 years) and a
specific long-term project.

405. The strategy will be accompanied with a monitoring-evaluation system based on the hand
board in order to adapt it to the sector’s situation in relation to releasing indicators or key
indicators; and taking into account the scenario of progress and the whole economy.

X.    SPAT INDICATIVE FINANCING PLAN

10.1 Introduction

406. The SPAT indicative financing plan is based on quantified and costed proposals from 20
districts of Kigali-Ngali, Kibuye and Gikongoro provinces and SPAT budget estimated according
to programmes and sub-programmes proposed, integrating proposals from the grassroots. Based
on MINECOFIN official data, available and committed resources were identified, this allows to
calculate financial deficits. The funding plan covers the period 2004 – 2008. The proposed
funding for 2005 is identical to the one scheduled in PIP 2005. Financial data collected for the
above exercise are presented in appendix V.

407. This data does not take into account projects and actions financed by NGOs
in the agricultural sector. The preparation of MTEF will make more detailed analysis of financial
aspects of the SPAT.

10.2. Proposals of Districts

408. The amounts relating to District proposals vary between USD 219,000 and USD 4,341, 000
per District with a medium global cost of around USD 1,800,000 per District. For the total 106
Districts, the total proposals would be about 191 million USD. Based on the hypothesis, that the
latter are proposals of projects to be executed during ten coming years, the requested fund is
around 19.1 million USD per year, a total of around 77 million USD for the period 2005 – 2008.
This amount is included in SPAT financing plan for the period 2005 – 2008.

409. The consideration of funding identified at the level of grassroots consultations, were done on
the basis of the of following working assumptions and criteria:
 1. Projects identified at grassroots level make part and parcel of the Community Development
     Plans (CDP)
 2. Needs expressed are global and their satisfaction require a planning period which could be
     extended on ten years.
 3. the funding covers three types of contribution: those by the beneficiary communities, those of
     Minagri and those of other partners of the private sector and development partners . The
     hypothesis kept is for the first period of planning ( 2005 – 2008) is of 20 % for communities,
     40 % for the Minagri and 40 % for the others. These percentages will be reviewed upwards
     for grassroots communities and downwards for the two other sources. These percentages
     will be defined during SPAT review.
 4. Project proposals will be classified into three categories taking into account their degree of
     priority (1,3 and 3) and will be scheduled in time taking into account the resources
     availability.
 5. The selecting criteria will be based on the evaluation of organization and management
     capacities (ECOG) of the concerned community, the project effectiveness in relation with
     SPAT prior programmes, the value of project proposal on technical plan ( innovation and
     involving gender),the importance of its expected impact on I) poverty reduction, ii) income
     improvement, and iii) natural resources protection.
 6. Communities disqualified by ECOG are eligible for a capacity reinforcement support for the
     next selection committee.



                                                                                                66
7. A project selection committee will be set up in each District, it will have a note and project
   selection guide.
8. The SPAT Monitoring and Evaluation system will have an information branch towards the
   grassroots relating to all decision taken as far as project selection and resources affectation
   is concerned and on the modalities of access to capacity reinforcement.

10.3. SPAT budget estimates

410. The total amount of required resources to fund the four programmes and the 14 sub-
programmes during the period 2005 – 2008 is estimated at around 167 million USD. The 2005 –
2007 PIP planning for investments in agriculture sector is 9,1 billion Rwf in 2005, 14,6 billion Rwf
for 2006 and 16,3 billion Rwf in 2007, making a total of around 40,0 billion Rwf. Assuming that the
agriculture sector development budget for 2008 would be of around 20 billion Few, the total
amount of private public investment for the period of 4 years would be around 60 billion Rwf,
equivalent to 103 million USD. The total proposed financing is therefore about 162 % of the total
planned amount in the PIP.

411. Programme 1 “Intensification and development of sustainable production systems” is
allocated with a total of 74,6million UDS, representing 45 % of the total budget. It is within this
programme that all production improvement activities will be conducted at grassroots level , under
the responsibility of local authorities.

412. The sub- programme 13 “ Marshlands development and irrigation ” has 27,6 million USD,
equivalent to about 17 % of the total SPAT funds. The sub programme 11 “ Sustainable
management of resources and water and soil preservation” account for 12 % of the total cost.
The sub programmes 11 and 13 represent 29 % of SPAT total cost, reflecting the importance of
preservation and rational use of natural resources. The sub programme “ Supply and utilization of
agricultural inputs” and 12 “Integrated Livestock system” are allocated with 12 million USD
representing each 7 % of SPAT total budget. The sub programme “Food security and vulnerability
management” is budgeted for with an amount of 3 million USD.

413. The programme 2 “ Support to farmers training has an allocation of 20,2 million UDS
representing 12 % of the total cost. An amount of 10 million USD is intended for sub programme
22 “ Strengthening of proximity services to farmers and rural innovations”, while 8 million USD are
allocated to sub – programme 21 “ Promotion of Farmers organizations and reinforcement of
producers’ capacities”. The sub programme 23 “Rural financial system and agricultural credit
development” will be funded with 2,2 million USD with a particular attention to support and
promotion of micro finance institutions.

414. Programme 3 “ Commodity chains development and promotion of agribusiness” occupies
the third place ,with a total fund of 63.4 million USD, making 38 % of SPAT total cost. This
allocation reflects the importance that the National Agriculture Policy attaches to commodity
chains development, enterpreneurship, trade and competitiveness of agricultural products. With
an allocation of 19 % of the total cost, the sub-programme 32 “Promotion and development of
commodity chains “ is the major sub-sector of the programme 3. It is followed by the sub
programme 33 “Agricultural products transformation and competitiveness ” to which 9 % is
allocated. The sub programme 34 “Rural supporting infrastructures” has an estimate of 14 million
USD, for financing rural infrastructures in order to support agricultural production, such as feeder
roads, bridges, water and electricity supply in rural areas for agricultural activities and
transformation of agricultural products. Main activities related to this domain will be funded by the
support sector to agriculture, under the tutelle of other ministries and particularly MININFRA.
However, the MINAGRI has an important role to play.

415. Programme 4 “ Institutional development” is allocated with 9 million USD, representing 5 %
of the total cost. Two thirds of the envelop are allocated to sub programme 41 “ Reforms and
institutional support to public service” ( legal framework, regulating mechanisms, institutional



                                                                                                  67
support to Minagri and to its connected institutions. A total amount of 3 million USD is planned for
the sub programme 42 Coordination and monitoring- evaluation of the agriculture sector” to
ensure efficient implementation of SPAT by all involved actors both at the central and
decentralized level.

10.4. Available resources

416. Funds considered as available are the ones funding current projects and programmes and
committed funds for new programmes and project as presented in the PIP 2005 – 2007 deducting
amounts disbursed at l end 2004. Except for the project PAIGELAC (fisheries and lake
management project), which is starting in 2005 to end up in 2009, all projects will close between
2006 and 2008. Funds for these different projects are considered as being available for the period
2005 – 2008. However, their effective mobilization will depend upon the rapidity of their
disbursement and their use by the projects. The present under-utilisation of resources in
approved projects affects the mobilization of additional resources for SPAT programmes and sub
programmes, which have currently no funding .

417. All existing programmes and projects were classified in different t programmes and sub
programmes of the present SPAT, in conformity with the SPAT new nomenclature. Only the
project RSSP was fractionated , and the content of its 6 components distributed into four relevant
SPAT sub-programmes.

418. Available resources for the period 2005 – 2008 total 139,million USD, equivalent to about 84
% of the total amount required. For the year 2005 resources are 100 % available. However, some
important innovative actions for the transitional year 2005, would meet financial problems,
because they are not planned in the PIP 2005 – 2007.Regarding the period 2006 – 2008, the
funding will not be available for all sub-programmes planned in SPAT.

10.5. Financial deficits

419. The total financial deficit for the period 2005 – 2008 is evaluated at 27.8million USD,
equivalent to 16 % of the total required resources. Eleven sub-programmes show a financing gap
totalling to around 82 Million USD, while three others have an apparent excess of around 54
million USD. The deficit for programme 4 and sub programme 21 (promoting farmer organizations
and producers’ capacity reinforcement) represent 100 % and 98 % respectively.

420. The three sub programmes for which there is apparent surplus of funds are the sub
programmes 12 “ Integrated Livestock system” (23.4 million USD), the sub programme 32 “
Commodity chains promotion and agribusiness development” (30.9 million USD) and the sub
programme 22 “ Strengthening proximity services providers to producers and rural innovations”
(0.65 million USD).

421. For the sub programme 12, the apparent surplus is related to PAIGELAC project, whose
funds are not included in the needs presented in the present SPAT.

422. The surplus appearing in the sub programme 32 results from different funding sources,
namely STABEX, RSSP, PDCRE and the Special Exporting Promotion programme funded by the
Government’s own resources. However , no concrete action was planned for the use of the funds
from this exporting promotion programme. This problem of funding surplus will be reviewed
during MTEF preparation, which will follow that of SPAT.

10.6. Assumptions for the SPAT financing

423.The following assumptions make the basis of the present financing plan and effective
implementation of the SPAT:




                                                                                                 68
   The National Investment Strategy (NIS) will be reviewed in order to allow for the scaling up
    of public investments in the period beyond 2006.

   Consequent to Government increased measures to create favourable environment, the
    involvement of the private sector in agriculture will increase. It is assumed that the private
    sector could contribute for about 30 % of public investments, amounting to about 50 to 55
    million USD. This would bring the total of Gross Domestic Investments to around 220 million
    USD for the period 2005 – 2008.

   The project levels of disbursement and performance will be considerably improved through
    the improvement of (I ) the functioning of decentralized financing mechanisms; (ii) improved
    management of projects implementation and (iii) more friendly disbursement procedures by
    the donors.

   The project RSSP (phase 1) whose closing date was initially planned for end December
    2005 and for which a Mid-Term Review is planned for November 2004 will be extended for at
    least one year to allow it reach the Project Development Objective and allow the starting of
    the second phase of the project.

   The capacities of decentralized entities, producers, farmer organizations, and service
    providers will be considerably improved, so that the planned utilisation use of resources can
    be effective and in conformity with the principle of transparency and accountability in public
    finance management .

   Consequent to institutional support planned in Minagri, the SPAT action plan implementation
    and coordination will be efficient and effective to allow rapid disbursements and increase the
    absorptive capacity of different actors in the agricultural sector.




                                                                                               69
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  1. CHERVEL Marc: L’évaluation économique des projets, 1995
                    Development plan, January 2004
                    Good governance for poverty reduction in Rwanda
  2. GOVERNEMENT OF RWANDA: Economic strategy to fight rural poverty
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  4. INSTITUT ROYAL DES TROPIQUES: Financer la décentralisation rurale: Taxes et impôts
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  5. INSTITUT ROYAL DES TROPIQUES: La décentralisation au Mali: Du discours à la
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  6. INSTITUT ROYAL DES TROPIQUES: Un guide pour la recherche agricole régie par la
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  7. IYADEMA SEZIKEYE John Bosco: Kigali-Ngari Province
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  9. Manuel for the use of Objective oriented intervention planning
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  10. MINAGRI: Cinquième plan quinquennal de développement économique et social
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  11. MINAGRI: Etude sur l’élevage et la filière lait et viande bovine; Vol. 1. Situation générale,
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  12. MINAGRI: Etude sur l’élevage et la filière lait et viande bovine; Vol. 2. Plan Directeur de
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  13. MINAGRI: Etude sur l’élevage et la filière lait et viande bovine; Vol. 3. Filière lait et viande
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  14. MINAGRI: Plan triennal 2003/2005
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                                                              nd
  16. MINALOC: Financial management and accounting, 2              Edition, April 2003
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  26. MINECOFIN: Integrated Household Living Condition Survey 2000-2001, September 2002



                                                                                                   70
27. MINECOFIN: National investment strategy (NIS), 2002
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                                                                                       71
PART FOUR: APPENDICES AND ANNEXES




                                    72
APPENDIX I. LOGICAL FRAMEWORK OF THE STRATEGIC PLAN

OVERALL                                                                                    PERFORMANCE             SOURCES OF           HYPOTHESES
                        SPECIFIC OBJECTIVES               STRATEGIC AXES
OBJECTIVE                                                                                  INDICATORS (PI)         VERIFICATION          AND RISKS
To contribute in a      1. To ensure sufficient supply     Diversification and             Infant                 Surveys: EICV,   Producers are
sustainable manner to      and food security to the         intensification of crop,          malnutrition rate.     EBCM, MICS,      organized
poverty reduction and      population.                      animal and aquatic              Level of
to support economic                                         production.                       agricultural          Agricultural     Extension services
growth of Rwanda        Quantified objectives 2010:        Organization, mobilization        production             surveys          are restructured
through involvement      Infant malnutrition is reduced    and strengthening the             intensification.                        and operational
of all stakeholders,       to 20%.                          capacities of the producers     Use of fertilizers.
increase production      Agricultural production           and professional                                                          Supply of
factors productivity,      doubles between 2000 and         organizations.                                          Agricultural     production means
maximum valorisation       2010.                                                                                     surveys          is assured
of productions,          Average use of 8kg of
diversification of         fertilizers by ha per year.
income opportunities,   2. To increase level and diversify  Diversification of income      Percentage of          Surveys: EICV,   The public sector,
natural and                households income sources.        source and employment of        poor rural              EBCM, MICS,      the private sector
environmental                                                rural populations.              peoples.               Agricultural     and the civil
resources               Quantified objectives 2010:         Link of production with        Percentage of           surveys          society
preservation and         50% of rural population is         market and integration of       modern farms.                            organizations
maintenance.               above poverty line of 1           agricultural economy in the    Percentage of                            operate in close
                           US$/day.                          national and regional           financial credits      NBR and IMF      collaboration
                         50% of the agricultural farms      economy.                        allocated to the        annual reports
                           are of modern type.              Strengthening the capacities    agricultural                             The micro finance
                         Agricultural sector benefits of    of the suppliers of services,   sector.                                  system is
                           15% of financial credits.         privatisation and promotion                                              reorganized and
                                                             of the private sector.                                                   meets the needs
                                                                                                                                      of the agricultural
                                                                                                                                      sector
                        3. To maintain, preserve and       Sustainable management of       Number of              Agricultural     The population
                           improve water and soil           water and soil and natural       treated and             surveys          mobilizes itself
                           resources management.            resources.                       protected                                massively and
                                                                                             hectares.                                technical and
                        Quantified objective 2010:                                                                                    financial means
                         50% of the cultivated area is                                                                               are availed
                          protected.




                                                                                                                                                        73
OVERALL                                                                          PERFORMANCE           SOURCES OF           HYPOTHESES
            SPECIFIC OBJECTIVES                  STRATEGIC AXES
OBJECTIVE                                                                        INDICATORS (PI)       VERIFICATION          AND RISKS
            4. To contribute to macro-            Creation of a conducive        Agricultural         Economic         Normal climatic
               economic growth and                 environment to productive        sector growth        surveys          conditions
               balances.                           investment, and to the           rate.
                                                   development of                                                         Significant growth
            Quantified objectives 2010:            entrepreneurship and                                                   of private
             Annual growth rate of the            employment in agribusiness.                                            investments in
               agricultural sector is 8%.                                                                                 agricultural sector
            5. To contribute to the resolution  Promotion of gender              Number of off-       Surveys: EICV,   HIMO programs
               of social problems related        approach and reduction of         farm jobs             EBCM,            are operational
               notably to gender, youth,         the vulnerability of the          created.
               landless peasants and other       underprivileged groups.                                                  Rural support
               vulnerable groups as well as                                                                               infrastructures are
               HIV/AIDS.                                                                                                  put in place
                                                                                                                          (roads, rural
            Quantified objective 2010:                                                                                    electrification.)
             300.000 new off-farm jobs are
              created in rural zones.                                                                                     Increase of
                                                                                                                          PME/PMI in rural
                                                                                                                          areas
            6. To transform the mission and       Creation of a conducive         Rate of             Agricultural     Institutional and
               the role of the actors of the       institutional framework for      involvement of       surveys          organizational
               public sector, the private          the professionalisation of the   the rural                             support programs
               sector and the civil society so     producers and                    communities in                        come with the
               that they adapt to the new          transformation of the            the monitoring                        change of
               vision.                             Rwandan agriculture.             and evaluation                        mentalities and
                                                  Reorientation of the             systems.            Farmers          strengthen the
            Qualitative objective for 2010:        MINAGRI role and                Percentage of        associations     capacities
             The role of the MINAGRI and          restructuration of its actions   farms organized      annual reports
              other actors is in conformity        towards the sectoral             in farmers                            Dialogue
              with new orientations.               program approach in the          associations and                      frameworks are
                                                   decentralization framework.      unions.                               operational at
                                                                                                                          different levels




                                                                                                                                             74
 APPENDIX II: PLAN OF ACTION

Program 1

INTENSIFICATION AND DEVELOPMENT OF SUSTAINABLE PRODUCTION SYSTEMS

 Sub-program 11: Sustainable management of natural resources, water and soil conservation
SPECIFIC OBJECTIVES     RESULTS                             Logic of intervention                                                                Priority
                                                            ACTIONS                                                               Responsible    1     2    3
                                                                                                                                  / Partners
SO 111                       Rs 1111                                 Large scale anti-erosive control in all districts of the
To curb land deterioration   Anti-erosive measures are applied on    country through the mobilization of the communities,         Districts /
process and better utilize   a large scale.                          massive diffusion of all available options and technical     Farmers
water resources.                                                     and financial support.                                       associations
                                                                                                                                  (FA)
                             Rs 1112                                  Participative watersheds development with                  DAEF /
                             Watersheds development progresses         accompanying measures such as HIMO and shows               FA/NGOs
                             significantly, water resources           Pilot watershed development by district.
                             management improves and
                             contributes to increase productivity.
                             Rs 1113                                  Creation of a research unit on agricultural
                             Agricultural mechanization adapted to     mechanization, that develops and diffuse appropriate
                             the conditions of the country.            techniques according to agro-ecological zones and
                                                                       farming systems and that counsels public and private
                                                                       technical services.
SO 112                       Rs 1121                                  Development of parks and reserves buffer zones and
To promote conservatory      Good co-management of the parks           implication / incitement of the residents populations in
agriculture in ecological    and national reserves.                    the management of parks and national reserves.
patrimony buffer zones.




                                                                                                                                                            75
Sub-program 12: Integrated animal production systems
SPECIFIC OBJECTIVES RESULTS                                             Logic of intervention                                                     Priority
                                                                        ACTIONS                                                   Responsible /   1    2     3
                                                                                                                                  Partners
SO 121                       Rs 1211                                     Promotion of innovative mechanisms (credits,
To restock farms in          Restocking and increase of livestock         repayment in animals, "animals for work") to
livestock and improve        numbers, in particular for poorest and       encourage restocking for the poorest and more
genetic potential of         more vulnerable farms and peoples.           vulnerable households.
animals.                     Rs 1212                                     Support to the emergence of private operators
                             The number of high genetic potential         engaged in high genetic potential animals importation
                             animals increases.                           (cows, small ruminants, others), embryos transfer
                                                                          and artificial insemination.
SO 122                       Rs 1221                                     Promotion of feedlots, quality organic manure
To promote organic           Soil fertility improves and productivity     production, agroforestry and fodder production in all   FA/Districts,
manure production            of the main crops is improved.               districts,                                              NGOs, FA,
through the integration of                                               Development and diffusion of technical options for      DAEF
agriculture, animal                                                       different agro-ecological zones and different farming
production and forestry.                                                  systems.
SO 123                       Rs 1231                                     Support to private operators for importation and
Support to creation of a     Supply of veterinary products is             commercialization of veterinary products, while
private veterinary           assured to farmers.                          assuring the control by the Government of the
products supply system.                                                   veterinary products quality.
SO 124                       Rs 1241                                     Updating the legislation on veterinary medicine and
To improve the quality of    The veterinary problems are better           animal health.
animal health services on    controlled                                  Strengthening the capacities of the national
farm.                                                                     veterinary laboratory and formal and continuous
                                                                          training of the veterinary doctors and technicians.
                                                                         Promotion of the services delivery by FA or private
                                                                          qualified vets.
SO 125                       Rs 1251                                     Support to the private sector for concentrate foods
To support the creation of   Supplu of animal inputs (food, etc.) is      production and creation of links with farmers
a system of production       assured.                                     organizations.
and supply of animal
inputs.
SO 126                       Rs 1261                                     Construction and rehabilitation of valley dams and
To improve animals           Water availability for animals is            increase boring and pumping infrastructures.
watering.                    increased in water deficit zones.




                                                                                                                                                             76
Sub-program 13: Swamps and irrigation development
SPECIFIC OBJECTIVES RESULTS                                         Logical d intervention                                                        Priority
                                                                    ACTIONS                                                       Responsible /   1    2     3
                                                                                                                                  Partners
SO 131                     Rs 1311                                   Development swamps on the basis of existing Master
To improve, rehabilitate   Swamp areas are developed,                  Plan.
and develop swamps and     contribute to food deficit eradication   Participative identification of crops according to
valley bottoms.            and increase incomes.                    agronomic potential and commercial potential.
                           Rs 1312                                   Technical and organizational support to local farmers
                           The producers take in charge swamps         organizations for the management of the swamps.
                           and valley bottoms management and
                           their organization is sustainable.
                           Rs 1313                                   Definition of a specific legislation for swamps
                           Swamps land securing allows the           Concession of long lease agreements to producers
                           producers to invest.                       exploiting swamps.

Sub-program 13: Planning of the swamps and development of the irrigation
SPECIFIC OBJECTIVES RESULTS                                  Logical d intervention                                                               Priority
                                                             ACTIONS                                                              Responsible /   1    2     3
                                                                                                                                  Partners
SO 132                     Rs 1321                                   Identification of irrigable water deficit sites and study
To develop hillsides       Hillsides irrigation is developed,         the development of identified sites.
irrigation.                especially in zones with chronic water    Preparation and implementation of priority
                           deficit.                                   development plan for irrigation in Bugesera (5,000
                                                                      ha) and Rusumo (1,000 ha).




                                                                                                                                                             77
Sub-program 14: Supply and use of modern agricultural inputs
SPECIFIC OBJECTIVES RESULTS                                                Logical d intervention                                                        Priority
                                                                           ACTIONS                                                       Responsible /   1    2     3
                                                                                                                                         Partners
SO 141                         Rs 1411                                     Elaboration of the national fertilizers development policy
To support supply of           Fertilizers chain is restructured and       recommending incentive measures for the importation
mineral fertilizers to the     assures supply at national and sub-         and distribution by private operators.
producers for soil fertility   national levels.
improvement.
                               Rs 1412                                      Updating the study on lime fertilizers production in
                               Fertilizers supply system is improved         Rwanda (lime, travertine) and facilitation of national
                               at national and local levels.                 or foreign investors for lime fertilizers production at a
                                                                             large scale.
                                                                            Promotion of increased use of lime fertilizers in acidic
                                                                             soils zones.
                               Rs 1413                                      Promotion of inputs commercialization stores, at local
                               Significant increase in present               level, managed by producers organizations, that
                               fertilizers use.                              assure training and demonstrations on mineral
                                                                             fertilizers use (inputs processing, booklets..).
SO 142                         Rs 1421                                      Strengthening the capacity of the NSS to produce
To put in place a quality      Quality seeds production and supply           foundation and basic seeds.
seeds supply system, on        are assured.                                 Use of biotechnologies (in vitro culture) for quality
the basis of producers                                                       seeds production at research institutions level.
demand.                                                                     To strengthen the capacity of the private seed
                                                                             producers or associations for quality seed production
                                                                             near crops growing zones.
                                                                            Search of the necessary means to assure seed
                                                                             quality certification and control.
                               Rs 1422                                      Support to the organization of quality seed
                               The level of utilization of quality seeds     distribution circuits by FA, with technical advice to the
                               is increased.                                 members.
SO 143                         Rs 1431                                      Finalization of the legislation on crop protection and
To promote integrated          Supply in phytosanitary products is           support to the private operators for the import of
pests management and           assured at local level.                       phytosanitary products.
use of indispensable                                                        Strengthening the capacities of ISAR phytopathology
phytosanitary products.                                                      department and reinforcement of MINAGRI
                                                                             phytosanitary inspection capacities.




                                                                                                                                                                    78
                         Rs 1422                                    Support to the promotion of integrated pests
                         The phytosanitary problems are better       management and correct application of phytosanitary
                         controlled.                                 products.
SO 144                   Rs 1441                                    Support the creation of a farm equipment supply
To promote farm          Farm equipment supply and                   network (financial services, training of local artisans
equipment supply.        maintenance are assured at local level.     in farm equipment manufacturing and maintenance,
                                                                     promotion of the emergence of artisans
                                                                     organizations.


Sub-program 15: Food Security and vulnerability management
SPECIFIC OBJECTIVES RESULTS                                        Logical d intervention                                                      Priority
                                                                   ACTIONS                                                     Responsible /   1    2     3
                                                                                                                               Partners
SO 151                   Rs 1521                                    Implementation of the Special Program for Food
To reduce the risks of   The Special Program for Food Security       Security (PSSA).
food and nutritional     and Information Systems are                Support to the creation of a Markets Information
deficits.                operational.                                System.
                                                                    Support to the establishment of a food security and
                                                                     agriculture and early warning information system
                                                                     (SNIAR).
SO 152                   Rs 1522                                    Accompaniment on agricultural plan of the projects of
To create employment     Employment and training opportunities       other sectors in favor of particular groups (jobless
mainly for the poorest   are created for the most vulnerable         young and demobilized soldiers).
people as well as the    peoples.                                   Inclusion of a vocational training component in order
jobless.                                                             to increase their professional capacity.




                                                                                                                                                          79
Program 2
                                              SUPPORT TO THE PROFESSIONALISATION OF THE PRODUCERS

Sub-program 21: Promotion of farmers organizations and strengthening the capacities of the producers
SPECIFIC OBJECTIVES RESULTS                                   Logical d intervention                                                                   Priority
                                                              ACTIONS                                                              Responsible /       1    2     3
                                                                                                                                   Partners
SO 211                        Rs 2111                                   Inventory of existing producers organizations in each
To promote the                The producers are organized and the        Province in order to formulate supporting approaches
organization of the           capacities of grassroots organizations     to FA meeting the needs of the producers.
producers and encourage       are reinforced.                           Support to FA unions and federations to reinforce
their representation in the                                              grassroots FA capacities: organization,
dialogue institutions.                                                   communication, financial management, advocacy
                                                                         and negotiation.
                              Rs 2112                                   Promotion of the producers organizations                  MINAGRI /
                              Producers organizations have place         involvement in dialogue institutions (national level,     MINALOC,
                              within the national and decentralized      inter-professions, provinces and districts).              Provinces,
                              institutions, as well as in inter-                                                                   Districts, inter-
                              professional organizations.                                                                          professions,
SO 212                        Rs 2121                                   Support to FA unions and federations to reinforce
To reinforce producers        Farmers organizations take                 members technical capacities (farmer to farmer
technical capacities.         themselves in charge in relation to        extension, farmer field schools, inter-farmers visits).
                              training and inter-farmers exchanges.


Sub-program 22: Restructuration of extension services and rural innovation
SPECIFIC OBJECTIVES RESULTS                                     Logical d intervention                                                                 Priority
                                                                ACTIONS                                                            Responsible /       1    2     3
                                                                                                                                   Partners
SO 221                        Rs 2211                                   Analysis of the situation in services delivery systems                                
To improve the services       An inventory on all extension services     (supply, research, support-advice, micro-finance) and
delivered to the              is made in every district.                 elaboration of an appropriate strategy to improve the
producers, in a                                                          situation in each district.
perspective of                Rs 2212                                   Formulation of a new agricultural support-advice                                      
progressive                   The agricultural support-advice policy     policy.
disengagement of the          is reviewed and in right line with the
government.                   agricultural policy and strategy.




                                                                                                                                                                  80
                           Rs 2213                                      Privatisation of the support services and                          
                           Extension services, assured by private        generalization of subcontracting FA and private
                           operators and farmers organizations,          operators for training and support-advice to
                           are available at districts and sectors        producers.
                           level and progressively replace the          Material and financial support and strengthening the
                           services delivered by the government.         capacities of emerging services suppliers.
SO 222                     Rs 2221                                      Exchanges with FA and private operators in order to                
To create and reinforce    The services and innovation centers           create services and innovation centers.
the capacities of the      are operational in the Districts and are     Support to the creation of services and innovation
services and innovation    expanding.                                    centers (organization, infrastructures, equipment,
centers (SIC), managed                                                   ICT, promotion campaigns).
by private operators or    Rs 2222                                      Training of the staff of the SIC (identification of the            
producers organizations.   The services and innovation centers           real needs of the producers, management, services
                           give various services to members              delivery).
                           (inputs supply, technical information,
                           market information, etc.).
SO 223                     Rs 2231                                      Support to the ISAR transformation and                             
To promote a               The research system is pluralistic            decentralization process.
participative research     (producers, beneficiaries, research          Strengthening the capacities of the researchers
system, adapted to the     structures), decentralized, participative     (research, production systems, participative
demand of the producers    and oriented on the demand of the             development of technologies, production chains,
and actors of the          producers and actors of the commodity         agro-economy, transfer of technologies).
commodity chains.          chains.                                      Development of partnership relations between
                                                                         research institutions and sector stakeholders
                                                                        Support to research programs on plant and animal
                                                                         priorities.
                                                                        Feasibility studies and formulation for the
                                                                         establishment of a competitive fund for research-
                                                                         development, to be managed by stakeholders in the
                                                                         sector.
                           Rs 2232                                      Promotion of research farmer groups.                               
                           The participative research system            Promotion and valorization of the conclusive
                           produces projects adapted to the rural        research results through production of technical
                           realities and which reach the targeted        booklets, radio broadcasts, videos, cartoons. ).
                           beneficiaries
SO 224                     Rs 2241                                      Strengthening the capacities of the associative and
To reinforce technical     Technical support to the producers,           private sector to delivery support-advice services
support to the producers   qualified and efficient, is assured more      (training, didactic materials, follow-up contracts
by public and private      and more by associative sector and            according to commodity chains).
structures.                private sector.


                                                                                                                                               81
                            Rs 2241                                   Development of the agricultural development guides
                            Technical agricultural training,           for all districts (soils aptitudes, economic
                            business and professional is improved      opportunities, technical booklets).
                            and reaches an important part of the      Development of a set of technical and business
                            stakeholders in agricultural               training for agricultural producers.
                            development.


Sub-program 23: Rural financial systems and development of agricultural credit
SPECIFIC OBJECTIVES RESULTS                                   Logical d intervention                                                             Priority
                                                              ACTIONS                                                            Responsible /   1    2     3
                                                                                                                                 Partners
S0 231                      Rs 2311                                   Inventory of the situation of the micro finance
To reinforce micro          Appropriate and secure rural financial     systems by province, diagnostic analysis of the
finance institutions.       systems are developed in each              challenges to be removed and formulation of
                            province.                                  operational strategies for efficient and transparent
                                                                       management of micro-finance institutions.
                                                                      Development of an appropriate credits security
                                                                       system and regular supply of guarante funds.
SO 232                      Rs 2321                                   Implementation of the micro finances strategy and
To increase rural credit.   The number and volume of credit            technical and institutional support to the micro
                            increase substantially.                    finance institutions in partnership with other public
                                                                       and private institutions.
                                                                      Consolidation of the different credit lines of the
                                                                       development projects in one fund.
                            Rs 2322                                   Differentiation, if necessary, of financial products to
                            Different producers groups have            take into account the different commodity chains and
                            access to agricultural credit.             different social groups.




                                                                                                                                                            82
Program 3
                                  PROMOTION OF COMMODITY CHAINS AND DEVELOPMENT OF AGRIBUSINESS

Sub-program 31: Creation of a conducive business climate and promotion of entrepreneurship
SPECIFIC OBJECTIVES RESULTS                                   Logical d intervention                                                             Priority
                                                              ACTIONS                                                            Responsible /   1    2     3
                                                                                                                                 Partners
SO 311                    Rs 3121                                     Preparation of a conducive investment code, taking
To create an attractive   The Government encourages private            into account the propositions of different parties
financial and fiscal      investments through attractive financial     (RIEPA, FRSP, Federations.).
environment to private    and fiscal conditions.                      Involvement in the WTO negotiations, adhesion to
investments.                                                           COMESA and other international organizations.
SO 312                    Rs 3111                                     Creation of agribusiness sections in the faculty of       MINAGRI /
To deliver training and   Agribusiness facilities are created and      agronomy of UNR and KIST.                                 MINEDUC
information services to   agribusiness concept is well                Organization of studies, seminars and workshops on
economic operators.       understood and applied.                      agribusiness for the economic operators.                  MINAGRI /
                                                                                                                                 MINICOM,
                                                                                                                                 FRSP
                          Rs 3112                                     Establishment of an agribusiness center/secretariat       MINAGRI
                          An agribusiness center / secretariat is      in the MINAGRI with the following mandate:
                          created and operational at MINAGRI            compilation and diffusion of information on
                          level and helps to improve the                   markets and agricultural prices, economic
                          agricultural produce outlets on                  opportunities,
                          domestic, regional and international          support to embassies for commercial promotion of
                          markets.                                         the Rwandan products and facilitation of the
                                                                           participation of the operators in international
                                                                           agricultural fairs.
                                                                        organization of the exhibitions and fairs at national
                                                                           and provincial levels.
                                                                      support the inter-professional associations in
                                                                       identification of markets and negotiation of contracts
                                                                       and offer e-commerce facilities.




                                                                                                                                                            83
SO 313                        Rs 3131                                   Promotion of the dialogue between the commodity
To push the structuring of    The commodity chains actors regroup        chains actors in order to create and reinforce the
the commodity chains          in inter-professions or dynamic            capacities of inter-professional organizations for all
actors in inter-professions   commissions.                               priority commodities.
and to promote their                                                    Facilitation of having a legal status for inter-
professionalization.                                                     professional associations and material support
                                                                         (equipment, logistics, ICT etc.).
                              Rs 3132                                   Consultation with inter-professional organizations to
                              Co-management of the commodity             define the priorities of the supports to provide in an
                              chains by inter-professions and            equitable manner to all commodity chains actors
                              MINAGRI operates and the strategy of      Organization of periodic dialogue meetings between
                              commodity chains is followed regularly     the MINAGRI and inter-professional organizations to
                              and is mastered by concerned               evaluate the implementation of the commodity chains
                              peoples.                                   development actions.
                              Rs 3133                                   Development of training programs (quality and
                              The capacities of the commodity            hygiene of foodstuffs, processing, marketing,
                              chains actors improve, allowing them       negotiations of contracts) in order to improve quality
                              to better meet market requirements.        and commercial success of the products.
                                                                        Mobilization of the private sector and the civil society
                                                                         to deliver technical services to the commodity chains
                                                                         actors.


Sub-program 32: Promotion and development of commodity chains
SPECIFIC OBJECTIVES RESULTS                                Logical d intervention                                                                   Priority
                                                           ACTIONS                                                                  Responsible /   1    2     3
                                                                                                                                    Partners
SO 321                        Rs 3211                                   Dissemination of research results to help the
To improve the                Scale economies are realized and           producers in the choice of commodity chains adapted
performance of the            production is optimized through            to the conditions of their region.
commodity chains              regional specialization.                  Pursuance of the exchanges at districts and
through regional                                                         provinces levels on the choice of priority commodities
specialization.                                                          on which efforts are going to be concentrated.
                                                                        Support infrastructures to regional specialization.
SO 322                        Rs 3221                                   Establishment of a collaboration system in
To promote production,        Increase tea production to 39,000 MT       partnership with the private sector and on inter-
productivity and quality of   in 2010, increase coffee production to     professional organization basis by commodity.
traditional export crops.     37,500 T in 2010 and increase             Extension of areas under tea in Nshili and Mushubi
                              pyrethrum production.                     Privatization of 8 tea factories.
                                                                        Extension of pyrethrum production to other regions.


                                                                                                                                                               84
                            Rs 3222                                  To intensify the follow-up of tea quality
                            Improvement of traditional export        Increase of the number of washing stations
                            crops quality with the objective to      Improvement of the quality of leathers and skins
                            produce more first quality tea and to
                            increase the part of fully washed
                            coffee to 60% in 2010.
SO 323                      Rs 3231                                  Identification and development of new export
To diversify exports        New export commodities are identified     commodities such as vegetables and fruits, honey,
commodities and promote     and developed.                            essential oils, medicinal plants, flowers.
high value products.
SO 324                      Rs 3241                                  Development of research programs oriented towards
To develop cash             Cereals imports (rice, wheat and          the promotion of priority cereals (quality seeds,
commodity chains for        maize) and of other foodstuffs            technological packet, adding value to the products.)
local and regional          (tomatoes, sugar) lower and producers    To promote partnership between private sector and
consumption, organized      incomes increase.                         FA for production increase
on inter-professional                                                Identification of opportunities to be produced for
basis by commodity.                                                   processing units and government market.
                                                                     Preferential consideration for local produced
                                                                      foodstuffs at the National Tender Board.
                                                                     Intensive support-advice support: inputs, support-
                                                                      advice, collection and commercialization of cereals.
                                                                     Increase of area and intensification of rice crop in
                                                                      order to cultivate 11,800 ha in the year 2009 and
                                                                      reach average yields of 5,000 kg/ha of paddy rice, a
                                                                      production of 59,800 MT in the year 2009 of which
                                                                      40,000 T of processed rice.
                                                                     Privatization of the rice factories.
SO 325                      Rs 3251                                  Promotion of soybeans, sunflower, palm oil, peanuts,
To promote oleaginous       Local supply in oil increases and the     maize. and support actions (research, seeds,
commodities and their       lipids ratio in the diet improves.        support-advice.).
processing.                                                          Support to the private sector, FA and NGOs for the
                                                                      installation of small processing units.
SO 326                      Rs 3261                                  Surveys on the constraints and opportunities of
To develop livestock        Animal commodities are developed          animal commodities development in different agro-
commodity chains,           and organized and contribute to a         ecological regions.
apiculture, aviculture,     better cover of the needs in proteins    Conducive measures to encourage the private sector
fishing and fish farming,   and lipids and to the farmers incomes     to invest in animal products commercialization and
organized on inter-         increase.                                 processing.
professional basis by
commodity.


                                                                                                                             85
Sub-program 33: Transformation and competitiveness of agricultural products
SPECIFIC OBJECTIVES RESULTS                                   Logical d intervention                                                            Priority
                                                              ACTIONS                                                           Responsible /   1    2     3
                                                                                                                                Partners
SO 331                     Rs 3311                                   Development and implementation of conducive
To promote the             PME/PMI are created in all districts.      measures to encourage the PME/PMI.
emergence and                                                        Training of potential investors for the preparation of
development of                                                        projects to be submitted to banks (CEFE approach or
agricultural PME/PMI in                                               other).
rural areas.               Rs 3332                                   To train and develop technical capacities of local
                           Production and maintenance capacity        artisans.
                           of food processing facilities is          Establishment of a system of information and training
                           increased.                                 on conservation and food processing technologies at
                                                                      the level of the Services and Innovation Centers.
SO 332                     Rs 3321                                   Promotion of processing, packing and labeling
To improve                 A large number of products is              enterprises.
competitiveness by the     processed locally, differentiation of
control of quality and     agricultural products is developed and
hygiene of the products.   products are paid according to their
                           quality.
                           Rs 3321                                   Elaboration of a national strategy for norms of quality
                           The norms and standards of quality         and hygiene of the products and formulation of a
                           and hygiene are respected by food          strategy of certification of the Rwandan products.
                           products producers and processors         Establishment of system of animal and crops
                                                                      health control and the harmlessness of foods.
                                                                     Survey on quality and hygiene for some specific
                                                                      commodities (meat, dairy products, honey,
                                                                      horticulture).

Sub-program 34: Rural support infrastructures
SPECIFIC OBJECTIVES RESULTS                                         Logical d intervention                                                      Priority
                                                                    ACTIONS                                                     Responsible /   1    2     3
                                                                                                                                Partners




                                                                                                                                                           86
SO 341                        Rs 3411                                    Avail water for coffee washing stations, tea factories,
To invest in large-scale      Large scale infrastructures are put in      flourmills.
infrastructures in order to   place, which stimulate private             Rehabilitation of the main roads.
improve the                   initiatives, create employment, attract    Development of conservation and storage
competitiveness of            foreign investors and have a positive       infrastructures of perishable agricultural products.
Rwandan agriculture and       effect on the national economy.            Cold chambers at the airport to attract foreign
agro-industry.                                                            investors and promote export.
                                                                         Refrigerated trucks for the collection of perishable
                                                                          products in remote areas.
SO 342                        Rs 3421                                    Involvement of the population in the maintenance of
To encourage support          Rural infrastructures are put in place,     feeder roads.
infrastructures to            particularly in zones with high            Investments in the domain of telecommunications
decrease the production       agricultural potential, and generate a      and ICT in all districts.
costs and create              positive economic effect on local          Construction and rehabilitation of local markets.
economic opportunities in     economy.                                   Rural electrification for the stimulation of production
rural areas.                                                              and processing activities.




                                                                                                                                    87
 Program 4
                                                                 INSTITUTIONAL DEVELOPMENT

Sub-program 41: Reforms and institutional support to public services
SPECIFIC OBJECTIVES RESULTS                                   Logic of intervention                                                              Priority
                                                              ACTIONS                                                            Responsible /   1    2     3
                                                                                                                                 Partners
SO 411                      Rs 4111                                     Analysis, updating or revision of the existing legal
To adapt legal and          The normative role of the public             and regulatory texts.
regulatory texts to the     sector is fully filled.
context and policy of the
Rwandan agricultural
sector.
SO 412                      Rs 4121                                     Implementation of an institutional support program in
To reinforce the capacity   The capacities of the MINAGRI to             the MINAGRI, notably for the Directorates of
of the MINAGRI to pilot     pilot and coordinate the agricultural        Planning and Agricultural Statistics, Follow-up and
and coordinate the          sector are improved.                         Extension.
agricultural sector.                                                    Restructuring the services of the MINAGRI according
                                                                         to the agricultural policy and strategy adopted.
                                                                        Elaboration of a strategy of support-advice and
                                                                         participative research adapted to the new National
                                                                         Agricultural Policy.
                                                                        Development of the website of MINAGRI.
                                                                        Development of a "Client Service Charter" for the
                                                                         Ministry.
SO 413                      Rs 4131                                     Institutional support to agricultural sector public
To reinforce the            The capacities of the public                 institutions (research, seed center, agricultural
capacities of the public    institutions intervening in agricultural     extension, support to the commodity chains.).
institutions of the         sector are reinforced.
agricultural sector.        Rs 4132                                     Creation of a national technologies innovation and
                            A National Rural Innovation System           diffusion center.
                            is developed.




                                                                                                                                                            88
 SO 414                        Rs 4141                                     Prospective survey for the creation of appropriate
 To prepare the creation of    Appropriate agricultural development         agricultural development funds (working
 appropriate agricultural      funds are created and operational.           mechanisms, financing models, responsibilities of
 development funds.                                                         management, financial transparency, involvement of
                                                                            the beneficiaries, links with CDF etc.).
                                                                           Feasibility study for the creation of a competitive fund
                                                                            for the financing research-development and support-
                                                                            advice activities, managed by the stakeholders of the
                                                                            agricultural sector.
                                                                           Strengthening the capacities of the decentralized
                                                                            entities to formulate agricultural projects and
                                                                            strengthening the financial management capacities,
                                                                            in partnership with the MINALOC.


Sub-program 42: Coordination, monitoring and evaluation of the agricultural sector
SPECIFIC OBJECTIVES RESULTS                                    Logical d intervention                                                                   Priority
                                                               ACTIONS                                                                  Responsible /   1    2      3
                                                                                                                                        Partners
SO 421                        Rs 4211                                      Dialogue framework with other Ministries and PTF
To improve planning and       The coordination of activities in and off     (Cluster of DR).
coordination of the           the sector is assured and the national       Dialogue framework with producers organizations, the
agricultural development      dialogue framework operates                   private sector, NGOs and inter-professions.
activities.                   effectively.                                 Coordination of resources mobilization.
                                                                           Inter-ministerial coordination of the agricultural sector
                                                                            funding depending on other Ministries.
                              Rs 4212                                      Establishment of an efficient coordination system
                              The coordination of activities in and off     between the MINAGRI and the decentralized entities.
                              the sector is assured with all               Development and implementation of an information
                              intervening parties at the decentralized      exchange system with the partners at the
                              level.                                        decentralized levels, using new Information and
                                                                            Communication Technologies.
                                                                           Coordination of the decentralized agricultural financing.




                                                                                                                                                                   89
SO 422                     Rs 4222                                     Strengthening the capacities of the Directorate of
To constitute databases    Databases on agricultural sector are         Agricultural Statistics and development of a work
on agricultural sector.    functional and accessible to all actors.     program including the following priority elements:
                                                                         Analysis of the existing databases on agricultural
                                                                            sector in view of their integration.
                                                                         Study to establish the baseline situation, serving for
                                                                            reference for follow-up and evaluation of the
                                                                            programs (baseline study).
                                                                         Development and use of a statistical database on
                                                                            the agricultural sector.
                                                                         Development and utilization of a database on
                                                                            agricultural projects and programs, linked with the
                                                                            CEPEX system of the MINECOFIN.
SO 423                     Rs 4231                                     Negotiation with the partners for the development of a
To put in place a system   The implementation of the PSTA is            coherent monitoring and evaluation system integrated
of monitoring and          efficiently monitored and evaluated.         in the PRSP monitoring and evaluation system and
evaluation.                                                             based on the systems of monitoring and evaluation of
                                                                        the PDC at the districts and provinces level.
                                                                       To annually evaluate the results and the impact of the
                                                                        agricultural development activities.
                                                                       To establish a technical evaluation system of the public
                                                                        investments programs.

      I. SUB-PROGRAM 43: COORDINATION, MONITORING & EVALUATION OF THE AGRICULTURAL SECTOR
      II. SPECIFIC                                      Logic of intervention                                                                      Priority
                         RESULTS
              OBJECTIVE                                                                                                            Responsible /
                                                        ACTIONS                                                                                    1    2     3
              S                                                                                                                    Partners




                                                                                                                                                        90
SO 431                      Rs 4311                                          Consultation framework with other ministries and
To improve planning and     The coordination of the activities in and          PTF (DR Cluster)
coordination of             off the sector is assured and national           Consultation framework with producers
agricultural development    consultation frameworks are effectively            organizations, private sector, NGOs and
activities                  working                                            interprofessions
                                                                             Coordination of resources mobilization
                                                                             Inter-ministerial coordination of agricultural funds
                                                                               managed by other ministries
                                                                             Establishment of an efficient coordination system
                                                                               between MINAGRI and decentralized entities
                                                                             Development and implementation of an
                                                                               information exchange system with partners at
                                                                               decentralized level, using the new Information and
                                                                               Communication Technologies
                                                                             Coordination of decentralized agricultural funds.
SO 432                      Rs 4322                                     Capacity building for the Directorate of Planning and
To constitute databases     Databases on agricultural sector are        Agricultural Statistics and elaboration of a work program
on agricultural sector      operational and accessible to all           including the following priority elements:
                            actors.                                          Analysis of existing databases on agricultural
                                                                               sector for their integration
                                                                             To conduct a baseline study for monitoring and
                                                                               evaluation programs
                                                                             Development and utilization of a statistical
                                                                               database on agricultural sector
                                                                             Development and utilization of a database on
                                                                               agricultural projects and programs, linked to
                                                                               CEPEX of MINECOFIN.
SO 433                      Rs 4331                                     - Negotiation with development partners for the
To put in place a           SPAT implementation is monitored and            development of a coherent monitoring and evaluation
monitoring and evaluation   evaluated efficiently                           system integratedin the PRSP monitoring and
system.                                                                     evaluation and based on the monitoring and
                                                                            evaluation systems of the PDC at the districts and
                                                                            provinces levels
                                                                        - To annually evaluate agricultural development
                                                                            activities results and impact
                                                                        - To establish a technical evaluation system of the
                                                                            public investment programs.




                                                                                                                                     91
   Inter relations between local agricultural development actors




                                    Government



                Sectoral                       De
                policies                       ce
                                               ntr
                                               ali
                                Decentralized Entities              Déconcen
                                               zat
                                                                    tration
                                               ion




                                   Financial platforms         PRIVATE PUBLICS
  Farmers                           and mechanisms
                                                               Services providers
Organizations



    Services                                                          Services
    at                                                                at
    demand                                                            demand




                                 Rural Populations
                           (Farmers and their communities)




                                                                                    92
APPENDIX III: STRATEGIC PLAN ELABORATION PROCESS

Three axes with common themes for analysis On basis of the five articulation challenges (see
appendix 1), a methodology wit three sections was developed:

Participatory workshops at the level of the districts, provinces and at the national level (ascending
approach)
    - General thematic studies, sub-sector based analyses and structuring of the strategy
        (descending and founding approach)
    - Progressive creation of a two-component database: (i) basic data and indicators related to
        agricultural development and (ii) current agricultural development actions and identified
        actions. The first component of the database will facilitate the follow-up/evaluation of the
        sector. The second one, based on the format of project sheet, will generate the FMTE
        and facilitate financial follow-up.

The methodology for the Strategic Plan elaboration then relies on the combination of the
ascending and descending approaches, of which the results are recorded in a database about the
agricultural sector.

In order to integrate different results of analysis, the ascending and descending approaches had
common themes for analysis, which were deducted from MINAGRI present organisation and the
National Agricultural Policy new orientations. It is the following five themes:

    1. Food security, intensification, diversification and sustainability of production systems;
    2. Organisation of the rural area, promotion of entrepreneurship and support services to the
        producers;
    3. Promotion of specialities, specialisation, competitiveness, transformation and access to
        markets;
    4. Legislation, infrastructures, institutional and organisational aspects, gender and other
        cross-cutting programmes;
    5. Coordination, funding and follow-up/evaluation of the agricultural sector.

Two reference documents guided this work: a note on the practical organisation and the funding
of the exercise and a note on the methodological approach for the elaboration of Agricultural
Development Strategy and its Plan of action (end of July 2004).

The battom-up approach: Grassroots Consultations

The battom-up approach lies within the framework of decentralisation policies and responds to
the MINAGRI conviction that the Districts and the producers constitute the focal point for effective
transformation of rural economy. It is the reason why MINAGRI decided to organise two-day
participatory workshops in all the districts throughout the country, with 40 participants per district.
These participants represented different actors operating at the grassroot level: CDC, the district
sectors, producers and farmers’organisations, technical services, private economic operators,
NGOs and projects. The objectives of the grassroots consultations are the following: (i)
information dissemination and mobilisation in view of the new orientations of the national
agricultural policy; (ii) additional collection of viewpoints and the beneficiaries’contribution to the
reflection 49; (iii) empowerment of beneficiaries and local communities in a perspective of
ownership of the strategy elaboration process and the follow-up/evaluation of the implementation
of the latter.

Support documents (the mobiliser’s guide, working sheets, formats for district report, guide for
provincial analyses and framework for provincial reports) were helpful during the grassroots
consultations.




                                                                                                    93
On basis of existing strategies and plans of Community Development Plans, the grassroots
consultations made it possible to deepen analyses related to agricultural development.
The discussions focused on agro-economic opportunities in the District and the identification of
relevant areas on which the districts could concentrate their efforts.
The consultations made it possible to have a clear idea of the beneficiaries’ viewpoints and the
analysis of their perspectives facilitates the formulation of orientation strategic hypotheses from
the bottom. Beside the assessment of local operators’ “first” demand, which is recorded in each
District database, it is this element of the approach which is relatively innovative.

In accordance with the methodological note, the consultations are conducted in three phases.
The pilot phase, related to the participatory workshops on the 10 Districts of Kigali_Ngali, was
organised in July 2004. In August and September , the second phase covered the Districts of
Gikongoro, Kibuye, Umutara and Kibungo provinces. The last phase is about the other 7
provinces (before end of November 2004). With an average of 40 participants per district, this
exercise will then touch about 4,240 representatives from various socio-professional categories
which are concerned or which operate in the agricultural sector. After the districts workshops, the
results are reported during a provincial workshop. Beside the provincial summary, a complete
report of agricultural development in the province is elaborated and put at the disposal of the
province administration team. Also, each District gets a copy of the consultation report, which
summarises and highlights the results of the discussions.

The top-down and structuring approach

The top-down and structuring- approach is a logical chain approach which finds its origin in
Rwanda Vision 2020, of the PSRP and its financial framework (PRS/N/S and the MTEF), and
which is described in the policies and sector strategies. To make the National Agricultural Policy
operational, the sector strategy needs to define programmes and sub-programmes on the basis
of expected results. The sector strategy, the programmes and sub-programmes will have a mid-
term outcome (horizon 2010), even if adjustments may be done during the process. At the
grassroots level and based on programmes and sub-programmes, a plan of action and triennial
budgets will be elaborated and updated every year.

Some elements of the agricultural strategy (such as legislative aspects, system of follow-up-
evaluation, competitiveness of Rwandan products on the international and sub-regional, market,
and others cannot be discussed in a participatory and ascending way. These topics require a
national or international perspective and will make it possible to locate the situations on the field
in its global context. For the preparation of the Strategic Plan, thematic and sub-sector based
analyses were conducted:




                                                                                                  94
Themes 1+2:                                        Theme 3:
Water and soil management and use                  Competitiveness,        specialisation    and
Vegetable productions                              development of specialities
Animal productions                                 Quality, transformation and creation of added
Food and nutrition security.                       value.


Theme 4:                                           Theme 5:
Infrastructures and employment                     Funding, coordination and follow-up-evaluation
Legislative, fiscal and cross-cutting aspects.     of the agricultural sector
                                                   Agricultural projects database.

Database

The creation of a database of ideas related to identified projects by the beneficiaries derives from
the concern to quantify and materialise financial needs with project sheets designed in order to
facilitate funding mobilisation and follow-up/evaluation by local structures, MINAGRI and donors.
The system makes it possible to put in place decentralised databases up to the level of the
Province or the District and to integrate automatically the Framework of Mid-Term expenses for
the agricultural sector. The database can be expanded to include technical and socio-economic
indicators to follow.

Implementation of the methodological process

The implementation of this process for the elaboration of rural development strategy was
entrusted to a local consultancy bureau 50, under the supervision of the Directorate of
Agricultural Planning and Statistics. For the three sections of the methodological process national
consultants and mobilisers were recruited. The process also require timely support missions of
international advisers.

Senior staff MINAGR of and other Ministries, forming a consultative group, regularly gave
feedback on preliminary results and made suggestions for the continuation of the exercise. In
September, a one-week retreat in Gisenyi was organised, which gathered the Minister, MINAGRI
senior staff and national consultants. Several timely meetings were organised with a large
number relevant ministries’directorates, resource people, as well as with development partners
and other actors in the sector.

Output

The results of the analyses and consultations carried out during the process of the national
agricultural Policy operationnalisation, are described in a large number of appendix documents.
The first appendix volume includes all thematic studies and sub-sector based analyses. Today
(mid-October), they are in the form of first and second drafts. Before the end of the year, they will
put at the disposal of the public MINAGRI website.

The second appendix volume compiles all the synthesis reports for the 12 Provinces. 106 reports
from districts constitute appendices to these reports. Reports from districts are structured and
presented in the same way, and numbered according to the national codification system.
Presently, 5 provincial syntheses and forty reports from districts have been finalised.

The main report, the Strategic Plan for the Transformation of agriculture, is based on results from
different analyses and consultations and refers to documents in the appendix volumes. The main
report is composed by the main text, its appendices and its executive summary in English and
French.


                                                                                                  95
             APPENDIX IV. COLLABORATION NETWORKS AND MUTUAL PERCEPTIONS (CASE OF
             ACTORS IN MARACUJA COMMODITY CHAIN)

                 a.                 b.              c.             d. Financial    e.              f.                g.
Actors           MINAGRI            Research        Producers      Institutions    NGO and FO      Transformers      consumers
                                                                                                   and
                                                                                                   Distributors

A.MINAGRI                           Information     Adapted        Collaboration   No link of      Exhibition
                                    Exchange        agricultural   through         collaboration   and study
                                                    policy         projects                        tours
                                                    Lack of
                                                    supervision
                                                    at the
                                                    grassroot
                                                    level
B. Research      General                            Experience                                     Training
Institutions     orientation of                     and use of
                 ISAR policy                        new
                                                    research
C.               Privileged         Little                         Provision of    Need of
Producers.       partner            collaboration                  loans           quality
                 Producer not                                                      products in
                 sufficiently                                                      sufficient
                 organised                                                         quantity
D.Financial      Money deposit      No              Request for                                    Difficult
institutions     to the financial   collaboration   loans                                          access to
                 Insufficient use                                                                  loans
                 of funds


E. NGO+FO        Doesn’t master     Trainings       Request for                                    Limit
                 NGOs and           were            technical                                      themselves
                 FO’s               conducted       and                                            to producers
                 operations                         financial
                                                    supervision
F.               Acknowledges       Exchange in     Contact
Transformers     the role of        technologies    between
& distributors   maracuja           transfer        customers
                 transformers                       and
                                                    producers
G.               Acknowledge          No            Offers                            Limited
Consumers        their                information   products to                       purchasing
                 importance           about         consumers                         power
                 Not organised        present
                                      research
             Source: Résultats des travaux de groupe de l’atelier sur les systèmes d’innovation rurale,
             organize par ROPARWA et ISAR à Kigali ( Centre Iwacu, 6-8 juillet 2004). This workshop
             gathered about 40 participants, representing the public sector (MINAGRI, Research,
             Mobilisation), the civil society (producers’organisation) and the private sector (economic
             operators, banks and MFI)




                                                                                                                96
APPENDIX V: PROBLEMS RAISED DURING THE GRASSROOTS CONSULTATIONS


Natural resources
   - Climatic hazards/water deficit
   - Exiguity/land parceling/galloping demography
   - Soil overexploitation and degradation/acidity of soil
   - Much erosion/deforestation and bare steep slopes
   - Lack of or little availability of manure for most exploitations
   - Bad management of water resources/ little development of marshes


Agricultural production and commodity                Animal production
chains                                                  - Strong decrease of the cattle
   - Rudimentary farming                                - Local races not very productive
        techniques/insufficiency of agricultural        - Scarcity of pastures/Extensive breeding,
        equipment                                           inappropriate pastoral practices, animal
   - Low level of agricultural intensification              rambling
        /unavailability, difficult access and high      - Unavailability or insufficiency of
        cost agricultural chemicals                         concentrates or kinds of food for
   - Bad quality of seeds/insufficiency of                  animals
        selected seeds                                  - Undernourishment of animals
   - Phyto-sanitary problems, diseases and              - Diseases of animals
        epidemics/rodents and devastators of            - Low quality of products due to health
        crops/loss of storage                               problems and lack of hygiene
   - Inaccessible markets (lack of                      - Scarcity of veterinary products
        information, being landlocked, bad              - Inefficient management of piscicultural
        condition of roads, means of transport)             ponds
   - Bad quality of products/bad storage and            - Low production and rudimentary
        hygiene conditions, mainly for                      apiculture techniques
        perishable products                             - Low level of animal products
   - Low level of agricultural products                     transformation
        transformation                                  - Domination of businessmen in the prices
   - Low prices to producers/non-covering of                fixing
        production costs/lack of motivation to          - Little purchasing power of the population
        produce for the market
   - Prices fluctuation/difficulty to foresee the
        revenues, which discourages
        investments in their agricultural
        exploitation
   - Domination of businessmen in the prices
        fixing
   - Non-developed marketing/low prices due
        to lack of transformation unity in the
        production areas
   - Insufficiency of conservation techniques:
        direct selling after the harvest: derisory
        prices which benefit to businessmen.




                                                                                                 97
 Farmers’capacities
- Little mastery of farming techniques and of use of chemicals
- Little knowledge of intensive breeding modern techniques
- Low level of organisation and organisational deficiencies
- Population’s little capacity to elaborate funding projects
- Little capacity of the populations regarding financial and technical management of
 projects



Support-Advice to producers                         Loans for Agricultural activities
   - Technical weaknesses of service                   - Difficult access to loans
        providers                                      - High interest rates
   - Insufficiency of development,                     - Lack of guarantees
        dissemination, adoption and                    - Bureaucracy
        accessibility to new technologies              - Non-adapted reimbursement conditions
   - Lack of links between research and                    (short deadlines)
        Support-advice to the population               - Little information about existing funding
   - Research findings don’t reach the                     opportunities
        Population
   - Little impact of trainings (small
    number of people who can’t
    transfer their knowledge to their
    fellow farmers)
   - Lack of follow-up after trainings



Institutional Environment
   - Little planning and follow-up of development activity/planning of agricultural activities is part
        of general planning including all sectors
   - Low technical and financial capacities of decentralised units/non-implementation of
        planned activities
   - Inexistence of consultation frameworks between various actors intervening in the
        agricultural sector
   - Weak institutional capacities of service providers (human resources, means)
   - Too many interveners and micro-projects
   - Different conditions and modalities of intervention from a project to another (loans,
        distribution of animals, food for work)
   - Lack of coordination of NGO activities and projects
   - Reduced role of the private sector and the civil society in agricultural development




                                                                                                   98
APPENDIX VI: PRIORITY SPECIALITIES OF THE DISTRICTS IN KIGALI-NGALI, KIBUYE
AND GIKONGORO PROVINCES

KIGALI-       NGALI            KIBUYE                         GOKONGORO
Districts     Specialities     Districts     Specialities     Districts        Specialities
Kabuga City   Coffee,          Kibuye City   Coffee,          Gikongoro City   Coffee, diary
              Tomatoes,                      Cooking                           cattle
              Maize                          banana,                           breeding,
                                             Fruits and                        pork
                                             vegetables                        breeding
Bicumbi       Maize, goat      Gisunzu       Coffee,          Nyaruguru        Tea, diary
              meat,                          Maize,                            cattle
              pineapple                      milking cattle                    breeding,
                                             breeding                          Irish potato
Ngenda        Manioc,          Rutsiro       Irish potato,    Nshili           Wheat, Irish
              Maize,                         milking cattle                    potato, diary
              Milking cattle                 breeding,                         cattle
              breeding                       coffee                            breeding
Nyamata       Milking cattle   Budaha        Manioc,          Mudasomwa        Tea, Wheat,
              breeding,                      pork-                             diary cattle
              goat meat,                     breeding,                         breeding
              coffee                         milking cattle
                                             breeding
Shyorongi     Coffee           Itabire       Tea, Wheat,      Mushibi          Tea,Coffee,
              Milking cattle                 milking cattle                    pork
              breeding,                      breeding                          breeding
              Fruits and
              vegetables
Rushashi      Coffee,          Rusenyi       Coffee, Soja,    Kaduha           Voluble
              milking cattle                 Tea                               bean, coffee,
              breeding,                                                        diary cattle
              vegetables                                                       breeding

Rulindo       Maracuja,                                       Karaba           Coffee, diary
              Maize,                                                           cattle
              Coffee                                                           breeding,
                                                                               soja
Buliza        Maize,
              Tomatoes,
              Milking cattle
              breeding
Gasabo        Maize,
              tomatoes,
              goat meat




                                                                                          99
Justification of the choice of priority commodity chains (Kigali-Ngali, Kibuye and
Gikongoro)

In Kigali-Ngali, the justifications expressed by the population for the choice of maize, tomato and
coffee are related to the construction of a flour-milling which is underway in Kanombe, the
relaunching of SORWATOM activities in Kabuga City, the construction of coffee washing stations
in Rushashi, Kabuga, Ngenda and Rulindo. Market opportunities offered by Kigali City proximity
and the concern to integrate agriculture with cattle breeding make milk and goat meat promising
specialities.

Kibuye province is favourable to coffee and tea, which provide important incomes to the
population. The existence or the promise of a coffee washing stations (Kbuye City, Rusenyi and
Gisunzu) and the existence of the tea factory in Gisovu in Itabire district, explain the traditional
exportation crops in the first position in 4 out of 6 districts. Another inciting factor is the starting of
the Project for the development of “rente” and exportation crops. Irish potato and wheat are
appropriate to the agro-climatic conditions of Rutsiro and Itabire. People from those districts
indicate that the prices for these two products are motivating. Besides, they plan to integrate Irish
potato and wheat in their daily diet. Favourable climatic conditions in high altitude areas,
guaranteed markets, diet implementation and obtention of organic manure justify the choice of
milk production.

In Gikongoro, the choices of coffee, tea , and wheat are motivated by favourable agro-ecological
conditions, the existence or the construction of processing factories and the existence of markets.
The high demand at the local and national markets justify Irish potato and pork breeding
specialities. Justifications of the choice of the milk cattle breeding are numerous and vary from a
district to another. For some, it is about opportunities for feeding the cattle (pastures and waste
from the wheat facory), for others it is the opportunities for loans for cattle or the existence of a
market for milk products which motivate the choice. In Kaduha district, the choice of the voluble
bean was motivated by a series of favourable factors: availability of seeds, adaptability to the soil,
high production and opportunities of sale on the local market.




                                                                                                       100
APPENDIX VII: TABLES ABOUT THE FUNDING INDICATIVE PLAN

1. Projets proposed by the districts
1.1. Kigali-Ngali Province

Kigali-     Year 1          Year 2           Year 3          Tot. RWF         Tot.USD       %
Ngali
Kabuga      179,079,200     109,184,550      101,882,750     390,146,500      672,666       6%
City
Bicumbi
Gashora     79,350,000      27,300,000       20,500,000      127,150,000      219,224       2%
Ngenda      1,579,548,940   808,000,000      130,200,000     2,517,748,940    4,340,946     37%
Nyamata     902,938,067     349.730.067      267,660,066     1,520,328,200    2,621,256     23%
Shyorongi   761,758,400     302,264,000      233,160,00      1,297,182,400    2,236,521     19%
Rushashi    97,224,500      64,020,000       65,069,200      226,313,700      390,196       3%
Rulindo     244,260,000     209,398,000      182,970,000     636,628,000      1,097,634     9%
Buliza
Gasabo
Kigali-     3,844,159,107   1,869,896,617    1,001,442,016   6,715,497        11,578,444    100%
Ngali
Province
(RWF)
Kigali-     6,627,861       3,223,960        1,726,624       11,578,444
Ngali
Province
(USD)

1.2. Kibuye Province

Kibuye      Year 1           Year 2          Year 3           Tot. RWF          Tot.USD            %
Kibuye      1,285,445,215    547,121,500     2,004,066,715    171,500,000       3,455,287          26%
City
Gisunzu     300,415,385      107,698,000     83,201,500       491,314,885       847,095            6%
Rutsiro     374,366,250      468,944,500     227,308,993      1,070,619,743     1,845,896          14%
Budaha      740,000,000      435,500,000     158,500,000      1,334,000,000     2,300,000          17%
Itabire     737,740,000      385,500,000     176,300,000      1,299,540,000     2,240,586          17%
Rusenyi     492,178,534      719,104,834     305,729,834      1,517,013,202     2,615,540          20%
Kibuye      3,930,145,384    2,663,868,834   1,122,540,327    7,716,554,545     13,304,404         100%
Province
Kibuye      6,776,113        4,592,877       1,935,414        13,304,404
Province
(USD)




                                                                                            101
Gikongoro Province

Gikongoro              Year 1          Year 2            Year 3        Tot. RWF      Tot.USD    %

Gikongoro        187,675,000      114,000,000        64,000,000     366,675,000      630,474    6%
City
Nyaruguru        678,462,638      534,000,000       513,880,000    1,726,342,638    2,976,453   27%

Nshili           223,779,168      152,000,000       118,543,865     494,323,033      852,281    8%

Mudasomwa        455,817,584      456,886,585       358,197,166    1,270,901,335    2,191,209   20%

Mushibi          204,100,000      137,000,000       111,500,000     452,600,000      780,345    7%

Kaduha           289,063,000      201,000,000       196,000,000     686,063,000     1,182,867   11%

Karaba           653,360,000      416,000,000       409,000,000    1,478,360,000    2,548,897   23%

               2,692,257,390     2,010,886,585    1,771,121,031    6,474,265,006   11,162,526   100%
Gikongoro
Province
(RWF)
Gikongoro           4,641,823       3,467,046         3,053,657      11,162,526
Province
(USD)


1.4. Analytical summary of the districts’requests

                                                           RWF                              USD
Lowest request                                      127, 150,000                         219,224
Highest request                                    2,517,748,940                       4,340,946
Average Kigali-Ngali districts                       959,356,820                       1,654,063
Average Kibuye districts                           1,286,092,424                       2,217,401
Average Gikongoro districts                          924,895,001                       1,594,647
Average 20 districts of the 3                      1,045,315,865                       1,802,269
provinces
Tot. 106 districts                               111,803,481,880                    191,040,486
(extrapolation)




                                                                                            102
Funding to be sought

Progrmmes and sub-      Indicative Budget   Allocated Funds   Funding to be secured
programmes              2005-2008 (USD)     2005-2008 (USD)   2005-2008 (USD)
Programme 1
SP 11 Sustainable       20,000,000                            20,000,000
management of
natural resources and
water and soil
preservation

SP 12 Integration       12,000,000          35,416,276        (23,416,276)
agriculture-Breeding
and management soil
fertility
SP 13 Marshes and       27,600,000          12,662,956        14,937,044
irrigation
Development
SP 14 Supplying and     12,000,000          9,452,689         2,547,311
use of fertilisers
SP 15 Food security     3,000,000                             3,000,000
and vulnerability
management
Sub-tot. proramme 1     74,600,000          57,531,921        17,068,079
Programme 2
SP 21 Promotion of      8,000,00            137,931           7,862,069
farmers’organisations
and
producers’capacity
building
SP 22 Restructuring     10,000,000          10,646,853        (646,853)
proximity services to
producers and rural
innovation
SP 23 Rural financial   2,200,000                             2,200,000
systems and
agricultural loan
development
Sub-tot.programme 2     20,200,000          10,784,784        9,415,216

Programme 3
                        2,500,000                             2,500,000
SP 31 Creation of a
conducive
environment to
business and
entrepreneurship
development
SP 32 Promotion and     31, 800,000         62,750,360        (30,950,360)
development of
specialities
SP 33 Transformation    15,100,000                            15,100,000
and competitiveness
of agricultural



                                                                               103
products
SP 34 Rural Support        14,000,000            8,332,060                 5,667,940
Infrastructures
Sub-tot. programme 3       63,400,000            71,082,420                (7,682,420)
Programme 4
SP Reforms and             6,000,000                                       6,000,000
institutional support to
public services
SP 42 Coordination         3,000,000                                       3,000,000
and follow-
up/evaluation of the
agricultural sector
Sub-tot. programme 4       9,000,000                                       9,000,000
Tot. Funding to be         167,200,000           139,399,125               27,800,875
sought

2. Programmes and Sub-programmes Indicative Budget (2005-08)

Programmes and sub-programmes                             Amounts (USD)                  %

Programme 1: Intensification and development of
production sustainable systems
PS 11 Sustainable management of natural resources         20,000,000                     12%
and water and soil preservation
PS 12 Integrated system of breeding                       12,000,000                     7%
PS 13 Marsh and irrigation development                    27, 600,000                    17%
PS 14 Supplying and use of fertilisers                    12,000,000                     7%
PS 15 Food security and vulnerability management          3,000,000                      2%
 Sub-total programme 1                                    74,600,000                     45%
Programme 2: Support to the professionalisation of
producers
PS 21 Promotion of farmers’organisations and              8,000,000                      5%
producers’ capacity building
PS 22 Restructuring of promiximity services to            10,000,00                      6%
producers and rural innovation
PS 23 Rural financial systems and development of          2,200,000                      1%
agricultural loans
 Sub-total programme 1                                    20,200,000                     12%
Programme 3: Promotion of specialities and
agribusiness development
PS 31 Creation of a conducive environment to business     2,500,000                      1%
and entrepreneurship development
PS 32 Promotion and development of specialities           31,800,000                     19%
PS 33 transformation and competitiveness of               15,100,000                     9%
agricultural products
PS 34 Rural support infrastructures                       14,000,000                     8%
 Sub-total programme 3                                    63,400,000                     38%
Programme 4: Institutional development
PS 41 Reforms and institutional support to public         6,000,000                      4%
services
PS 42 Coordination and follow-up of agricultural sector   3,000.000                      2%
 Sub-total programme 4                                    9,000,000                      5%
Total funding USD                                         167, 200,000                   100%
Total funding RWF                                         96,976,000,000



                                                                                               104
       3. Committed Funds

Programmes and sub-      Existing projects   Sources   End    Committed      Committed    Committed    Committed
programmes                                                    funds 2005     Funds 2005   Funds        Funds total
                                                              (RWF)          (USD)        2006-2008    2005-2008
                                                                                          (USD)        (USD)
Programme 1:
Intensification and
development of
sustainable production
systems
PS 11 Sustainable
management of natural
resources and water
and soil preservation
PS 12 Integrated         PADEL               BAD       2007   703,000,000    1,212,069    10,564,000   11,776,069
system of breeding
PS 12 Integrated         PAIGELAC            BAD       2009   978,000,000    1,686,207    21,954,00    23,640,207
system of breeding
PS 13 Marsh and          RSSP                WB/IDA    2006   883,827,780    1,523,841    11,139,115   12,662,956
irrigation development   component 1
PS 14 Supplying and      Support to          Belgium   2008   843,000,000    1,453,448    6,447,000    7,900,448
use of agricultural      specialities
chemicals                “semaimières”
PS 14 Supplying and      Fertiliser          FI        2006   300,000,000    517,241      1,035,000    1,552,241
use of fertilisers       promotion
PS 15 Food security
and vulnerability
management
Sub-tot. programme 1                                          3,707,827,78   6,392,807    51,139,115   57,531,922
                                                              0
Programme 2: Support
to the producers’
professionalisation
PS21 Promotion of        Training of         FAO       2005   80,000,000     137,931                   137,931
farmers’organisations    agents and
and producers’capacity   professionals
building
PS 22 Restructuring of   RSSP                WB/IDA    2006   576,807,680    994,496      7,255,081    8,249,577
proximity services to    component 3
producers and rural
innovation
PS 22 Restructuring of   Support to          Belgium   2007   463,000,000    798,276      1,599,000    2,397,276
proximity services to    Nat.Extension
producers and rural      system
innovation
PS 23 Rural financial
systems and and
development of
agricultural loans
Sub-tot.programme 2                                           1,119,807,68   1,930,703    8,854,081    10,784,784
                                                              0
Programme 3:



                                                                                              105
Promotion of
specialities and
development of
agribusiness
PS 31 Creation of a
conducive environment
to business and
entrepreneurship
development
PS 32 Promotion and        RSSP              WB/IDA   2006   624,821,240    1,077,278    7,914,634    8,991,912
development of             component 2
specialities
PS 32 Promotion and        SP export prom.   IF       2007   1,000,000,00   1,724,138    10,345,000   12,069,138
development of             Tea,coffee                        0
specialities               &horticulture
PS 32 Promotion and        Stabex            EU       2008   930,000,000    1,603,448    19,000,000   20,603,448
development of
specialities
PS 32 Promotion and        PDCRE             IFAD     2008   1,088,000,00   1,875,862    19,210,000   21,085,862
development of                               BADEA           0
specialities
PS 33 Transformation
and competitiveness of
agricultural products
PS 34 Rural support        RSSP              WB/IDA   2006   582,143,303    1,003,695    7,328,365    8,332,060
infrastructures            component 4
Sub-tot. programme 3                                         4,224,964,54   7,284,422    63,797,999   71,082,421
                                                             3
Programme 4: Legal
aspect and
institutional
development
PS 41Legal and
regulation devices
PS 42 Reforms and
institutional support to
public services
PS 43 coordination and
follow-up/ evaluation of
agricultural sector
Sub-tot. programme 4                                         0              0            0            0
Tot. Committed funds                                         9,052,600,00   15,607,931   123,791,19   139,399,12
                                                             3                           5            6




                                                                                             106
APPENDIX VIII:        FARMERS’        ORGANIZATIONS          AND     PROXIMITY        SERVICES       TO
PRODUCERS


RWANDA has an associative movement which is progressively densifying. Basic consultations
revealed that each district receives a big number of farmers’ organizations (FO). In the region of
Kigali-Ngali, the identified number of OPs varies between 50 and 150 per district. The associative
movement is mostly developed in the Northern provinces. It is estimated for example that the
number of OPs in Ruhengeri province is around 4000. Those figures testify dynamics at the basis
and show the agro-breeders’ will to express their interests and to take themselves in charge. The
farmers’ associative movement has a huge diversity. Some organizations of community type
mostly have social aims. Others organize themselves around specific fields and rather pursue
economic objectives. Some organizations exclusively operate at local level, while others are
affiliated to local intergroupings, unions or provincial unions or interprofessional organizations.

Two farmers’ unions, created in 1992, operate at provincial and national level. They have the
union professional organization’s status recognized by the Ministry holding professionalization
within its remit (Letter of the Ministry in Charge of Labour of 1998). The texts voted in general
assembly governing the internal functioning and define planning, follow up-evaluation and
accounts mechanisms. The union INGABO is based in Gitarama Province. It has around 10,000
members 60% of whom are women. The union IMBARAGA operates at national level and is
represented in 6 Provinces (Ruhengeri, Gisenyi, Cyangugu, Gikongoro, Butare, Byumba). It has
66,500 members 41% of whom are women. With 21,200 and 22,000 members, the union
movement is remarkably booming again in the provinces of Gisenyi and Ruhengeri, where the
Bureau for Support to Rural Initiatives (BAIR; Gisenyi), and the Forum for Rural Organizations
(FOR; Ruhengeri) are also evolving. In a very estimated way, one may deduce that the level of
organization in union is around 5-10% of agricultural farms. However, this organization level
strongly varies from one province to another. Although IMBARAGA aims-again-at extending its
activities to all Provinces, it seems that the farmers’ organization level is still less developed in the
provinces of Kigali-Ngali, Umutara, Kibungo, Kibuye and Gikongoro.

BAIR, FOR, IMBARAGA and INGABO have regrouped themselves in Rwanda Network of
Farmers’ Organizations (ROPARWA). ROPARWA, INGABO and IMBARAGA are affiliated to
international organizations like EAFFE (East African Farmers’ Federation), REFON (Regional
Farmers’ Network), FIPA (Agricultural producers’ International Federation), CCFD (France),
AGRITERRA (Netherlands). They collaborate with agricultural research structures (ISAR, NUR),
training structures (INADES), HIMO programmes, the Programme for Support to the Rural
Sector, projects for support to decentralization and basic organizations’ capacity building, as well
as with the Directorates of Agriculture, Animal Resources and Forestry in the Provinces and the
districts’ CDCs. INGABO has a partnership relationship with one of the Provinces in Belgium.

The activities of IMBARAGA and INGABO rest on two pillars. By combining the roles of plea and
provision of services, they are in fact unions and cooperatives. The “union’s” objective of the first
pillar is to represent and defend agro-breeders’ interests at different levels and to negotiate best
prices for producers. The “cooperative” objective of the second pillar is to support producers in
organizing themselves around the fields, providing economic services and building capacities of
professional members. The table on the following page shows a certain number of activities
undertaken during the last years.

The unions’ annual budgets are relatively reduced: around USD 73,000 for INGABO and around
USD 250,000 for IMBARAGA. Although unions have some own incomes (members’
contributions, donations and incomes from provided services and contracts), they strongly
depend on financial support from outside (80-95% of the budget). It is thanks to that they were
able to recruit the technical and administrative staff. One the big issues for the union and farmers’
cooperatives movement’s sustainability is therefore to reinforce members’ contributions, to
develop a service provision system on remuneration and to develop cooperative activities which



                                                                                                    107
can improve the self-funding level (inputs provision, marketing and transport of agricultural
products).




                                                                                         108
Plea role                                                    Service provision role
- Defence of the agricultural union freedom in the           - structuring of potato, vegetables, fruits, wheat and rice
  draft Constitution                                           producers, federations, up to the provincial level
- Articulation of the farmers’ opinion about the land bill
              - Farmers’ representation in the districts’         - Proposal for a better organization of works for fighting
              planning meetings/putting in place of               erosion
              forums for negotiation with decentralized      - Setting up a saving and credit system, evolving towards a
              structures                                       microfinance network
- Creation of an “Ombudsman’s” service                       - Starting up a participatory research process, collaboration
              - Proposal for reducing duties/taxes             with ISAR
              collected by districts on land/marshes              - Introduction of new bean and maize varieties
              - Negotiations for increase in the price to    - Seeking markets for vegetables production
              the tea and potato producer                    - Recruitment of specialized officers for the OP’s training at
              - Negotiation of market contracts and            the beginning
              negotiation of prices (case of vegetables at   - Making available veterinary doctors specialists in artificial
              Butare and potato at Gisenyi and                 insemination for breeders
              Ruhengeri)                                     - Technical and organizational trainings
              - Participation in the board of directors of   - Regular distribution of information organs (monthly
              the Community Development Fund,                  newspaper UMUSARURO of IMBARAGA and quarterly
              negotiation of modalities of access to           newspaper of INGABO)
              farmers’ organizations with the CDF



Challenges, vision and strategies of farmers’ organizations


ROPARWA, INGABO and IMBARAGA have worked out triennial action plans for the 2004-2005
period in which they present the challenges to be lifted, strategies and the detailed action plan.
Challenges to be lifted are formulated as follows:

-   To know the impact of economic liberalism on the agricultural sector
-   To absorb people who are going to leave agriculture because of the lands’ smallness and
    degradation
-   To develop spaces in order to participate in decision-makings on agricultural policies, to
    make farmers real interlocutors instead of being used as tools for putting in place policies
    worked out in other circles
-   To facilitate producers’ and their communities’ access to different available funds
-   To create synergies among the civil society’s organizations
-   To provide services in bygone days provided by the State
-   To reduce risks of investing in agriculture and livestock farming
-   To facilitate inputs supply and the selling of agricultural products
-   To build producers’ technical and organizational capacities

Anxious of contributing to the rural environment transformation within the general framework of
reducing poverty, the OP federations have adopted the vision of making agriculture a profession
likely to enable them to have access to incomes and to reach food security. Such a vision is in
right line with the Vision 2020 and the PSTA vision.

Main orientations are defence of the farmers’ and breeders’ socio-economic rights and interests,
agro-breeders’ access to resources of investment in the agricultural profession, support to
agricultural fields’ development and the building of the producers’ professional capacities. Gender
promotion, sustainability and democracy are transversal main lines.

Among strategies are the following:


                                                                                                   109
-    To position oneself in the civil society by expressing the agro-breeders’ points of view;
-    To work in network with other organizations which support the development of rural
     environment;
-    To accompany and reinforce the OP’s structuring at the level of provinces, districts and
     sectors and to reinforce federations in the negotiation with decentralized structures;
                                                                      1
-    To collaborate in partnership with actors of specific fields and to establish commercial
     partnerships with traders within the framework of interprofessional organizations;
-    To inform members about different subjects: legislation, markets and prices, new
     technologies, fighting erosion, seeds and pesticides;
-    To increase own funds by increasing contributions and income generating infrastructures;

-    To carry out technical trainings and in management (leadership, communication, to give an
     account to the members, enterprise spirit, marketing, negotiation, accounts)

-    To develop services within federations which members are ready to pay (market studies, joint
     purchases of quality seeds and inputs, administrative support)

Proximity services to producers: collaboration between OPs, the public and private sector

The Ops’ strategies show that they propose themselves to become active actors in the
agricultural sector. Different donors support them in order to achieve this ambition through their
following programmes: Ops’ capacity building (PROP-RWA), Programme of Investment in
Agricultural Fields (PIFA), Programme of Basic Organizations’ Reinforcement in Rwanda
(PROB).

The Ops’ emergence and professionalization process comes in a new institutional context,
marked by the private sector’s promotion, decentralization and the State’s disengagement. In
fact, we therefore assist to the genesis of an “agricultural development triad”, which is comprised
of the civil society, the private and the public sector.

Within this new context, it is very important to (re) define the different actors’ roles and tasks in
order to create real agricultural development systems, which deal with providing diverse proximity
services to producers. All in all, the putting in place of agricultural development triads will be a
complex process, of an iterative character, of action-reaction, of go and back and apprenticeship
by all. For each decentralized entity, it will be necessary (i) to identify actors, (ii) to know and take
into account the functions and interests of the actors in the system who can be supplementary as
they can be conflictual and (iii) to understand the nature of relations (hierarchical, commercial,
etc.) between the actors and the forces and weaknesses of each of them within this context.

The results of such analysis help to propose institutional means and frameworks (networks,
platforms with their mechanisms) which seem to be the most appropriate to soften an agricultural
development process based on local priorities. The functionality of relations also requires
particular attention for the actors’ capacity to correctly play their role notably within a perspective
of customer-provider relations and transparent financial management.




52
   All provincial federations have identified their priority fields. Ruhengeri (PdT/maize, fruits, vegetables, wheat), Gisenyi
(PdT/maize, fruits, vegetables, coffee), Cyangugu (vegetables/maize, fruits, rice, coffee), Gikongoro (PdT, wheat, tea,
fruits), Butare (vegetables, rice, fruits, coffee), Byumba (tea, wheat, PdT, fruits). Milk is a priority for all Provinces.



                                                                                                                           110
APPENDIX IX: SOME PROJECTIONS REGARDING EXPECTED OUTPUTS




                                                           111
APPENDIX X. REPORT OF THE VALIDATION WORKSHOP OF THE STRATEGIC PLAN FOR
AGRICULTURAL TRANSFORMATION

Introduction.

The validation workshop of the Strategic Plan of Agricultural Transformation (SPAT) has been
held in Hotel Novotel Umubano from 25th to 26th October, 2004. It has been opened by Mrs.
Daphrose GAHAKWA, Minister of State in charge of Agriculture in the MINAGRI.

Topics of the day 1 have been: (i) introduction on the National Agricultural Policy (by Dr Patrick B.
HABAMENSHI, Minister of Agriculture and Animal Resources); (ii) main lines of the SPAT (by Mr.
Ernest RUZINDAZA, Director of Planning and Agricultural Statistics in the MINAGRI); (iii)
presentation of the database (by Mr. Claude BIZIMANA, Consultant); (iv) the process of the
participatory workshops and the working groups (by Mr. David BUCAKARA, Director of Extension
and Marketing in the MINAGRI).

In the end of after noon, the work has been organized in groups and has continued in the morning
of the day 2. During the after noon of the second day, presentations have been made in plenary
session and the workshop has been closed by the Minister of Agriculture and Animal Resources.

The workshop has been characterized by a strong involvement of the main stakeholders in the
agricultural sector. Besides the high ranking authorities of the MINAGRI, the workshop was
attended by representatives of ministries, public institutions and donors, the private sector and
producers organizations, as well as GECAD consultants who carried out the SPAT preparatory
studies.

Observations made by the participants on the papers presented during day 1.

After the presentations of the first day, the participants who took the floor appreciated the quality
of the SPAT and congratulated the MINAGRI to have implied several actors involved in
agricultural development in the SPAT preparation process. To place the producers and other
beneficiaries in the center of the SPAT has especially been appreciated.

Interventions made by the participants have been on:
i)    Importance of soil protection, erosion control and irrigation;
ii)   Necessity to more involve women and youth;
iii)  Problem of capacity building of the technicians in the decentralized services;
iv)   Collaboration modalities between MINAGRI and other stakeholders in SPAT
      implementation;
v)    The fact that the SPAT document shows an evident availability of financial resources in
      2005 whereas it is rather known that funds to invest in agriculture are not enough;
vi)   Inadequacy between increase of agricultural products prices and the low purchasing power
      of the population;
vii)  Integration of the government budget and the budgets of the decentralized entities;
viii) Weakness of the national capacities as regards artificial insemination;
ix)   Problem of baseline for databases, and;
x)    Clarification of the statute of agricultural producers in order to be able to differentiate those
      that are truly producers and those that are not.

Exchanges were made on the above issues.

     Concerning emphasis put on soil protection, the necessity to mobilize the communities and
      agricultural farms owners to know that erosion control is primarily their responsibility and
      not of the MINAGRI or local authorities has been underlined. There is need of an
      imperative change of attitudes of the producers because government support must




                                                                                                   112
      complete their efforts. The government must invest in activities beyond the capacity of the
      producers.
     Concerning the role of the women and youth, it has been specified that one of the SPAT
      programs is exactly about the support to producers and their organizations. Gender and
      youth issues are considered in terms of training, access to credit, etc.
     Concerning the capacity building of the technicians of the decentralized entities, the
      participants have been informed that the MINAGRI will strengthen the capacity of all actors
      in the agricultural sector, whatever their level of intervention. Resources planed in the
      capacity building multi-sectoral program (MIFOTRA) will be used as an example to that
      effect.
     For relations between MINAGRI and its partners, exchanges revealed that progress have
      been made since last year on the necessity to reinforce dialogue and partnership with all
      stakeholders. The participants have been informed about the complementarity between
      Agricultural Policy and Land Policy, notably for a better land utilization via the process of
      land consolidation. The MINAGRI plans also to publish and distribute booklets in easy
      language to inform the users on agricultural policy and the main orientations of the SPAT.
     Concerning the availability of funds for agricultural sector; the Minister underlined that
      funds of some projects have not been disbursed due to several factors among which the
      low capacity of the potential beneficiaries to present good projects. It is the case for the
      funds of the Rural Sector Support Project that have been decentralized at Province level
      since 3 months but that have not yet been used. In order to solve this problem of projects
      preparation capacity, the MINAGRI intends to elaborate a set of standard-projects to help
      the beneficiaries to prepare projects.
     Concerning agricultural products prices, the problem is not that they are rising; but that the
      purchasing power of the consumers is low. It is not the agricultural producer who must
      always be penalized by receiving non remunerative prices.
     The problem of the non integration of the decentralized budgets in the government budget
      is going to be soon solved with the 2005 Budget Law.
     In order to complete the essentially qualitative information contained in the database, the
      MINAGRI intends to carry out a quantitative exhaustive survey that will establish the SPAT
      baseline.

Results of the working groups and recommendations

The participants worked in 4 groups on the following topics:

Groups 1 and 3: Production Intensification and diversification
                Development of commodity chains and agribusiness promotion

Groups 2 and 4: Professionalization of agriculture and animal production
                Legal and institutional framework

Production intensification and diversification

1.    Agricultural producers must play an active role in the decision-making and research
      institutions.
2.    Agricultural production activities must be based on research results.
3.    Research results from universities and other research institutions must be published and
      valorized.
4.    Erosion control must be the top priority for all farmers.
5.    Agricultural competitions must be organized to give value to the best practices, notably
      technological innovation.
6.    The choice of commodity chains must be conceived within the framework of regional
      specialization and ISAR must work in partnership with other stakeholders in the choice of
      seeds, varieties and fertilizers adapted to each agrobioclimatic zone.
7.    Agriculture based on commodity chains must be strongly supported.



                                                                                                113
8.    Research on appropriate fertilizers doses are necessary. The Government must control
      fertilizers quality and regulate their importation.
9.    National fertilizers policy must be developed.
10.   The time allocated to agricultural broadcasts on Rwanda Radio and Television must be
      increased and modalities to put in place an agricultural radio must be defined.
11.   It is necessary to rapidly put in place small animals credit schemes to farmers.
12.   Capacity and technical skills of the veterinary services at local level must be developed.
13.   To promote beekeeping, fisheries and fish farming activities in putting emphasis on clear
      definition of activities.
14.   For lanimal genetic improvement, emphasis must be put on increasing the capacity for
      artificial insemination, increase covering centers and promote biotechnologies such as
      embryos transfer.
15.   It is recommended to create a "Farmers University" and to valorize farmers experience on
      research and innovation by linking them with ISAR's research programs.
16.   Thesis of Universities and other higher education institutions must in priority be oriented
      towards farmers associations and organizations.

Support to producers organizations and professionalization of agriculture

1.    Associations should be created on commodity chains basis in which members are
      involved.
2.    It is recommended to conduct a country-wide census and a diagnostic analysis of the
      situation of the producers organizations.
3.    It is necessary to put in place a farmers organizations capacity building program, especially
      on training, information sharing and management.
4.    It is strongly recommended to define the agricultural producers categories, in order to show
      those that can really be considered as agricultural producers, and those who theoretically
      are considered to be in the sector but should be reoriented to other sectors.

Commodity chains development

The participants strongly supported the strategic orientation to base agriculture on commodity
chains development. Among priority commodity chains they mentioned coffee, tea, maize, rice,
beans, Irish potatoes, milk, meat, fruits and vegetables. They gave orientations that must guide
the development of the commodity chains by examples on rice and milk.
      1.     For rice, the participants recommended that actions be undertaken to increase the
             quantity of rice (increase of cultivated areas and yields) and to improve its quality.
             Emphasis will also be put on packaging improvement.
      2.     For milk, the first priority is to increase milk production through increasing the
             numbers of high productive breeds.
      3.     It will also be necessary to regulate milk commercialization.
      4.     The Government should support private operators to install small dairies in provinces
             and districts.
      5.     It is also necessary to rapidly put in place a big milk processing unit (UHT).
      6.     The problem of milk transportation and conservation must also be solved
             (packaging, refrigerated trucks).

Legal and institutional framework

1.    It is recommended to the MINAGRI to restructure its organs and operation.
2.    It is necessary to put in place an efficient agricultural information system.
3.    Agriculture and livestock development must have priority in the District Community
      Development Plans.
4.    The program of agricultural entrepreneurship promotion must be well defined.
5.    To put in place laws diffusion mechanisms to farmers and sensitize them on laws
      enforcement.



                                                                                               114
6.    To put in place a set of indicators objectively controllable allowing to monitor and evaluate
      progress achieved.

CONCLUSION

At the closing of the workshop, the participants insisted again on the fact that the Strategic Plan
for Agricultural Transformation must not be only considered as a document of the MINAGRI. Its
content is rather a contract that binds all the stakeholders in the agricultural sector and each has
been called upon to do his best for its implementation and success. In closing the meeting, the
Minister of Agriculture and Animal Resources was pleased of the interest shown by the
participants on the content of the SPAT and called upon everybody to be implied in its
implementation.




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