My Proposal

Rwanda’s economy remains largely agricultural, with approximately 80% of the working population relying, at least partially, on this sector. Agriculture contributes around 39% to national GDP and generates about 63% of total export revenues. However, the sector continues to face substantial challenges that have stood in the way of it achieving its full potential.

As one of the world’s most densely populated landlocked countries, Rwanda faces a situation of land scarcity and, as a result, soil fertility has deteriorated dramatically over time. While fertilizer use, both organic and inorganic, is increasing, average applications per hectare remain low – even by regional standards. Fertility loss is compounded by the fact that a) almost 90% of arable land is on slopes of between 5 and 55% that require careful land husbandry and b) on more than half of these slopes torrential rains cause erosion and subsequently flooding and silting of valley bottoms.

Low current productivity, however, implies a huge potential for growth and profitability for a wide range of food and export crops, particularly given the country’s favorable agro-climatic conditions. Indeed, Rwanda’s agricultural sector provides a wealth of investment opportunities all along the value chain and includes a strong potential for regional trade. However, smallholder farmers lack the skills and are not able to access the technology or finance required to benefit from these opportunities.

Rwanda’s Economic Development and Poverty Reduction Strategy (EDPRS) advocates an approach of decentralization and increased private sector involvement in order to move towards their key objective of growth for poverty reduction. The priorities of the EDPRS are embodied in three flagship programs: Sustainable Growth for Jobs and Exports; Vision 2020 Umurenge and  Governance. Under the first flagship, the goal is to improve productivity and promote innovation. Given the importance of agriculture for growth and poverty reduction, ‘
a key priority of the EDPRS. The agriculture and food security strategy of the Ministry of Agriculture and Animal Resources (MINAGRI) – the second Strategic Plan for Agricultural Transformation (PSTA II) covering 2009-2012– articulates the approach and activities required for achieving 8-9% growth in Rwanda’s agriculture sector between 2009 and 2012—the goal set out in the country’s Vision 2020 and EDPRS. Consistent growth rates of 8% or more in agriculture, will allow Rwanda to achieve the first Millennium Development Goal of halving extreme poverty by 2015.