The Social Democratic Party (PSD) has pledged to support the creation of industrial zones dedicated to processing agricultural and livestock produce with a view to further developing the sector and boosting farmers’ income.
In its manifesto, PSD promises the establishment of at least one special industrial zone for agriculture and livestock per province, based on crops and farm animals predominantly available there.
It is one of the pledges it stated it will fulfill once its parliamentary candidates secure seats in the Chamber of Deputies during the July 14-16elections.
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Kizito Habimana, national coordinator of PSD electoral campaign activities told The New Times that they thought of the idea in order to help the farmer prosper, underscoring the importance of transforming the agricultural sector for the better in the development of the country.
He said that the idea is to promote the development of agricultural value chains, including growing, processing, and marketing agricultural products (their sale either locally or through exports) from the producing area.
"For instance, in banana producing areas such as Kirehe District [in Eastern Province], we will support increase banana production, set up factories making Urwagwa (banana-based alcoholic drink), liquor,” he said, adding that they will also promote the processing of affordable sanitary pads from stems (fibers).
Currently, he said, due to the absence of such dedicated industrial zones, a farmer grows crops and people who come from Kigali or elsewhere, and even factories from distant places, buy their produce at a low price. Yet, he added, the farmer puts in a lot of effort to get the produce, which makes them incur losses.
The party, he said, wants to ensure that the investments that a farmer makes, the efforts, and time, are rewarded with good income from their produce so that they can achieve prosperity.
He gave an example of rice farmers who grow the crop and supply the produce at a low price to distant factories, but buy the processed rice for consumption at a higher price.
"But because the factory will be there [within the farmers’ locality], farmers will get the processed rice at a relatively affordable price,” he said, adding that they will also get a ready market for their produce.
In line with facilitating the execution of the proposal, he said that the party has a plan to encourage investors to venture into such industrial zones, and to push for the creation of a special financial institution that will be providing loans to farmers with interest rates below 10 per cent per year – an agriculture bank that will be providing financing tailored to farmers’ needs.
Also, it wants to promote good farming practices, domestic production of quality seeds and fertilizers for increased farm productivity, and post-harvest handling efforts through modern storage facilities across the country to prevent losses.
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By supporting increased crop and livestock production, linking farmers to markets, and the processing of the produce within the producing areas, PSD said it believes farmers will get a fair share of revenues from the sector which is expected to register progress.
According to the report by the Office of the Auditor General for State finances for the fiscal year ended on June 30, 2022, industrial parks [or zones] are designed to address the domestic private sector constraints including availability of industrial and commercial land, availability and the cost of energy, limited transport linkages, market access and availability of skills.
The report showed that there were 11 industrial parks namely Kigali Special Economic Zone, Bugesera Special Economic Zone, Huye, Nyabihu, Rusizi, Muhanga, Nyagatare, Rubavu, Musanze, Rwamagana industrial parks, and Kicukiro SME Park.
Though there are industrial zones or parks in the country, Kizito said that there is a lack of those specific to agriculture and livestock, especially to each area of the country and the produce predominantly available there.
Such a situation, he observed, implies a gap in the growth of the sector that has a great potential to contribute to the country’s development.
"Because of the particularity we want for the agriculture and livestock sector in line with attaining the country’s Vision 2050, we want to reinforce the sector by treating it separately from other sectors so that it becomes the backbone of Rwanda’s economy,” he said.