The government is set to implement a five-year agriculture strategic plan expected to need an estimated Rwf6.988 trillion (or approx. $5.4 billion) to achieve the set targets to increase sector growth, address malnutrition, and double the country’s agricultural export revenues, among other outcomes, it has emerged.
Of that funding, the government (with financing including loans) is expected to contribute more than Rwf3.3 trillion or 47 per cent of the total amount, while the private sector and grants will contribute 53 per cent, or more than Rwf3.68 trillion, according to information from the Ministry of Agriculture and Animal Resources.
The fifth Strategic Plan for Agriculture Transformation (PSTA 5) which is expected to focus on building resilience and sustainable agri-food systems in Rwanda, will run from the fiscal year 2024/2025 which will commence on July 1 through 2028/2029.
"We want the private sector to lead the implementation of this strategy,” said Chantal Ingabire, the Director General of Planning at the Ministry of Agriculture and Animal Resources, pointing out that the government will be the facilitator for the plan execution.
Ingabire said this while making a presentation on PSTA 5 during a High-Level Agriculture Sector Working Group Meeting held on June 14, 2024, in Kigali.
Talking about lessons learned from the fourth Strategic Plan for Agriculture Transformation (PSTA 4) which will conclude on June 30, and the remaining challenges, Ingabire said that according to the findings of its mid-term review report, though the government made significant investments in addressing climate change, the country’s agriculture sector was still vulnerable to their shocks, which was negatively affecting agriculture production and productivity.
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Despite the effort of the government to subsidise improved agriculture input and livestock breeds or technologies, the adoption was still low, especially among smallholder farmers who account for the majority of farmers in the country, Ingabire observed.
"So, it’s very key that we think about them as we move forward with the food systems approaches that we have opted for,” she said.
She indicated that low investment in agriculture was leading to low productivity and income, while climate change and limited access to markets for both input and output were also among key challenges that must be addressed.
The vision of PSTA 5 is to have a nation that enjoys food security, nutritional health, and sustainable agricultural growth driven by a productive, resilient, and market-oriented agriculture, according to the agriculture blueprint.
Its mission is to ensure food and nutrition security of Rwandans by leveraging modern production and agribusiness technologies, professionalisation of farmers in terms of production, commercialization, and competitiveness.
"The formulation of this vision of PSTA 5, and [its] mission, was guided by the Vision 2050 of this country which considers agriculture to be a source of inclusive wealth creation,” Ingabire said, adding that it is also aligned with the second phase of the National Strategy for Transformation (NST2).
Expected impact
Information from the ministry shows that PSTA 5 is targeting to contribute to Rwanda’s economic transformation.
Among other outcomes, it projects to achieve an annual agriculture output (GDP) growth of 8.2 per cent from a baseline of 2 per cent [in 2023].
It also seeks to increase agricultural export revenues to $1,981 million from $857 million (in 2022/2023), which is the baseline.
Meanwhile, the agricultural exports target under PSTA 4 was $1 billion in the financial year 2023/2024 which will end on June 30.
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The strategic plan also envisages the creation of more than 644,000 off-farm jobs in agri-food systems, from 400,000, to contribute to addressing unemployment especially in the rural areas and among young people.
On food and nutrition security, the strategic plan seeks to increase the proportion of Rwandan households that are food secure and reduce stunting rate among children.
Priority areas
The strategy was designed around three priority areas. They include the modernisation of agriculture and animal resources production for climate-resilient food systems, which is estimated to need Rwf3.56 trillion (approx. $2.75 billion) to be implemented.
Others are inclusive markets and post-harvest management for sustainable agri-food systems whose budget is estimated at Rwf1.8 trillion (approx. $1.4 billion; and strengthening agri-food systems enablers for effective and efficient delivery, with an estimated outlay of Rwf1.6 trillion (approx. $1.24 billion).
Overall, key targeted outputs include new agriculture land management and production models, promoting urban farming, scaling up mechanisation, as well as modern inputs and labour-saving technologies.
Others are sustainable animal breeding and increase of access to livestock feeds, fisheries and aquaculture development [for increased fish output], and beekeeping development [for more honey production].
They also include enhancement of export value chains to accelerate growth and farmer prosperity, strengthening post-harvest handling for reduced losses, food safety and quality, demand-driven research, implementing customised and comprehensive extension services, digital innovation in agriculture value chains, and increased access to formal agriculture finance, as well as scaling up the national agriculture insurance scheme to make sure actors in agri-food systems are cushioned against potential losses.