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Rwanda receives 46 mln USD from World Bank to transform agriculture

The World Bank has approved a financing of 46 Million U.S. dollars to support Rwanda’s efforts to increase and intensify agricultural productivity and expand the development of value chains.


Rwanda and the World Bank officials on Thursday signed the financing agreement, paving way for the disbursement of funds that will support the country’s efforts towards achieving inclusive agriculture development.

Speaking to reporters shortly after signing the deal, Claver Gatete, Rwanda’s minister of finance and economic planning said that the money will be channeled towards supporting agricultural transformation and improved commercial farming.

"The funds will provide sustainable increases in agricultural productivity which benefits the poor. It will contribute to the impact of achieving sustainable economic growth and reducing poverty given the fact that agriculture constitutes 33 percent of our GDP," he added.

According to the agreement, the funds will support agriculture and animal resource intensification, research, technology transfer and professionalization of farmers, value chain development and private sector investment and as well as institutional development and agricultural cross-cutting issues.

It will support the ministry of agriculture and animal resources to finalize the development of the new National Agriculture Policy and design and develop the fourth phase of the Transformation of Agriculture Sector (PSTA 4)

However, Yasser El-Gammal, World Bank Country Manager for Rwanda noted that the support would particularly enhance irrigation, transport as well as research and technology to increase productivity.

"Agriculture has a huge impact in Rwanda’s economy as it employs majority of the population. It is important that the sector is sustainable to positively impact the population," he said.

Building on the achievement of the previous financing, the additional credit for the third phase of the Transformation of Agriculture Sector (PSTA 3) the third Program-for-Results (PforR3) will continue to support the government’s on-going efforts towards expanding and sustaining the increased productivity gains that have improved rural incomes and reduced poverty.

Agriculture in Rwanda accounts for a third of the country’s GDP, employing about 80 percent of the total population. It contributes 47 percent of Rwanda’s domestic goods and exports.

The transformation and acceleration of agriculture in Rwanda has been widely recognized which has led to improvements in welfare and poverty reduction, in particular among millions of rural farmers across the country.

The country’s second Economic Development and Poverty Reduction Strategy (EDPRS2) define a large number of programs in the agriculture sector including the intensification of sustainable production systems in crop cultivation and animal husbandry.

Jimirasire

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