When African leaders pledged to support agriculture by allocating over 10 per cent of their budget to the sector under the Maputo Declaration over 10 years ago, Rwanda was the first country to endorse the initiative. 

Though governments across the continent committed to increasing agro-funding to at least 5 per cent of their national budgets under the Maputo Declaration, many are still reluctant to do so. This move is part of the Comprehensive African Agriculture Development Programme (CAADP) aimed at raising support to the sector.

However, unlike many states, Rwanda has been ensuring that over 10 per cent of the national budget goes to agriculture to stimulate growth in the sector, create more jobs, as well as boost exports and increase farmers’ household incomes. The government and its stakeholders target to push the sector’s growth to at least 8.5 per cent by 2018.

Government is counting on programmes like twigere muhizi, Girinka, crop intensification, as well as training farmers in proper agronomic practice and post-harvest handling and storage to increase the sector’s capacity and make it more productive.

The Ministry of Agriculture and Animal Resources has, for example, been conducting nationwide campaigns to promote agriculture mechanisation to improve the sector’s performance. However, despite these efforts and investments made so far, the agriculture sector has been growing at just 5 per cent on average over the past few years. This has since raised concern, especially because the sector employs 72 per cent of the population.

According to recent GDP (gross domestic product) figures released by the National Institute of Statistics of Rwanda (NISR), the agriculture sector growth stagnated at 5 per cent in 2015, unchanged from 2014. However, it was the second biggest contributor to GDP after the service industry, adding 33 per cent.

Experts are, however, optimistic the sector will start expanding going forward, with a multiplier effect on the economy.

Yusuf Murangwa, the NISR director general, said the sector’s growth and productivity was affected by low rainfall in some parts of the country last year.

"However, the general performance of the sector and its contribution to GDP remains impressive,” Murangwa noted. Agriculture brought in more Rwf1.908 trillion in 2015, up from Rwf1.785 trillion in 2014, he added. Food crops recorded Rwf1.367 trillion in earnings, up from I.274 trillion in 2014, while export receipts declined marginally from Rwf106 billion in 2014 to Rwf104 billion over the reporting period. Livestock raked in Rwf188 billion, from Rwf152 billion in 2013.

Rising absorption capacity

Amb Claver Gatete, the Minister for Finance and Economic Planning, said government is drafting a strategy that will help increase the absorption capacity of the initiatives and resources channelled into agriculture sector, arguing that this will enhance production and create more jobs.

The government will continue to emphasise public-private sector partnerships, invest in innovative and modern farming technologies, like irrigation schemes, and promote land consolidation, among others, to increase production. This will help to keep the economy stable despite the poor performance of the global economy.

Ongoing initiatives

In an earlier interview with The New Times, Louis Butare, the director general of the Rwanda Agriculture Board (RAB), said there are already interventions in place to support smallholder farmers and ensure better harvests, and access to markets.

Butare said RAB has, for instance, trained and equipped farmers with modern agriculture skills to boost production. The government is already working on a plan to avail farmers more land to increase acreage under crop production to increase output. For example, 8,000 hectares will was allocated to rice farmers to enhance production.

A three-year project worth Rwf11 billion was last year commissioned to increase efficiency in agriculture.

Rwanda is also benefitting from the Capacity Development for Agricultural Innovation Systems (CDAIS) project supported by the European Union, which targets to enhance efficient and sustainable agriculture innovation systems in eight countries, including Rwanda.

Over Rwf120 billion was allocated to the agriculture sector this fiscal year.

Innocent Musabyimana, the permanent secretary at the Ministry of Agriculture and Animal Resources (MINAGRI), said several initiatives have been put in place to boost agricultural innovations. He, however, added that farmers need to embrace modern farming.

"We have come up with various innovative practices to boost agricultural productivity, but we still need to improve them.

"For instance, farmers are able to acquire skills on best agronomic practices under the "twigire muhinzi” programme. However, they need to embrace simple and affordable technologies that can complement the practical skills to enhance their productivity,” he said.

The ministry launched a national agriculture advisory services forum to enhance capacity building and co-ordination among stakeholders as part of efforts aimed at strengthening the sector.

However, to make the sector more sustainable, the government must encourage more private sector players to invest in agriculture production.

business@newtimes.co.rw