Prime Minister Edouard Ngirente, on Monday, April 3, presented to the Parliament four major projects that the government is banking on to fix issues affecting agricultural production and food security.
The projects, some of which have already started, will address issues in agriculture value chains like insufficient agriculture funding, lack of insurance and proper irrigation practices as well as post-harvest losses and waste.
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Multi-billion project to de-risk agriculture
A project called Commercialisation and De-Risking for Agricultural Transformation (CDAT), financed by the World Bank, is one of the initiatives the government is banking on to fix issues in the agriculture sector.
With $300 million (over Rwf300bn) in funding, the five-year project launched in 2023 is expected to address issues like insufficient agriculture funding, lack of insurance and proper irrigation practices.
Lending by commercial banks to agriculture remains low, he said. In order to increase agriculture financing, the government has initiated the agribusiness project to help farmers get loans at an interest rate of as low as 8 per cent.
The project, being piloted in 16 districts, aims at increasing commercialization and access to financial services in selected agricultural value chains (rice, maize, Irish potatoes, cassava, beans and horticulture).
It will benefit up to 890,000 households, composed mainly of women and young people.
$20 million will be allocated to agriculture insurance. The project will also include irrigation among other sub-sectors.
If the 5-year pilot project becomes successful the government will roll it out nationwide, Ngirente said.
Nyagatare powder milk factory
A $45 million factory to produce milk powder in Nyagatare District, Eastern Province, is expected to start production in June this year, Prime Minister Ngirente said.
Run by Inyange Industries, Rwanda’s largest agro-processing firm, the factory will have the capacity to process 650,000 litres per day.
Ngirente said the government is working with the private sector actors to encourage farmers to increase milk production, by giving them more productive cow breeds, among other measures.
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With more than 80 per cent of its production expected to be exported and Rwf9 billion going to farmers per month, the factory will transform Rwanda’s dairy sub-sector.
Gabiro Agribusiness Hub
Gabiro Agribusiness Hub is a smart agriculture project implemented in Nyagatare and Gatsibo districts, which focuses mainly on food items.
Prime Minister Ngirente said the government has a 93 per cent share in the project and the remaining 7 per cent is owned by an Israeli firm called NETAFIM.
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The project which started in 2020 is aimed at enhancing value chains to support market-oriented agriculture. It is implemented on 15,600 hectares of irrigated areas in Nyagatare.
The implementation of phase one of the project, covering 5,600 ha, will cost Rwf115.9 billion and is at 94 per cent complete.
The project is expected to provide thousands of jobs, mostly for youth.
Gako Beef Integrated Project
The Gako Beef Integrated Project, implemented in Bugesera District, has already started to have a positive impact on Rwanda's local meat production, the Prime Minister said.
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The $73 million (more than Rwf74 billion) project, which will be driven by investors. Under the project, up to 86,400 cows are planned to be produced per year.
Ngirente said that the government has put in place measures to fast-track the project in order to meet its targets.
He said all the measures and government actions are meant to increase agricultural production and food security.
Rwanda's agricultural export revenues increased from $500 million in 2017 to $640 million in 2022.