KIGALI - The European Union has, through the sector budget support, injected some €15.6 million (approximately Rfw 12.5 billion) into the crop intensification program.

At a ceremony to append signatures to the paperwork pertaining to the donation, John Rwangombwa, the Minister for Finance and Economic Planning, said that the donation will boost the lives of many, since a big number of Rwandans depend on agriculture for livelihood.

"I am impressed by the European Union’s decision to channel this money through the sector budget support. The EU continues to adhere to aid effectiveness and this money will go a long way in touching the lives of many,” he said

The funds will be disbursed in two tranches, with the first Euro 7.8 million disbursement coming into effect in the second quarter of 2010 and the second tranche of Euro 8.8 million in the fourth quarter.

The funds will go towards supporting government programs in increasing food security by ensuring the availability of fertilisers and their sustainable use by small scale food farmers.

Ambassador Michel Arrion, who headed the European Union delegation at the signing ceremony, said that the funds would be released through the sector budget support rather than the classic project approach to give the government greater flexibility and ownership for the implementation.

"The European Union has already provided grants in order to mitigate the impact of the past food crisis. This particular contract we are signing today is additional to our contributions to Rwanda Strategic Plan for Agricultural Transformation (SPAT II),” he said

The Minister for Agriculture; Dr. Agnes Kalibata who was present at the ceremony, said that agriculture had improved immensely since the introduction of the crop intensification program two years ago.

She said that the money would support the production of more food crops and would also help in the training of farmers and the purchase of fertilisers.

The funds come from a new fund created as a response to the growing food security problems faced by most developing countries.

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