How the 2020/2021 agriculture budget will be used

Gabiro Agribusiness Hub Project, which seeks to greatly develop Rwanda’s farming sector, will receive the larger share of the 2020/2021 agriculture budget, the Minister of Agriculture and Animal Resources has said. Gerardine Mukeshimana made the disclosure on July 17, during a virtual press conference on how the agriculture sector budget for this fiscal year will be used. Agriculture has been allocated more than Rwf120 billion in the current financial year. Mukeshimana said that the Gabiro Agribusiness Hub Project will get about Rwf33 billion of that finance. The project aims to create a holistic commercial agricultural ecosystem by developing a modern value chain over approximately 15,600 hectares of arable land with advanced water infrastructure, cutting-edge irrigation systems, high-value agro-processing operations and other agriculture technology activities. Gabiro Agribusiness Hub Project was started last year to bolster investments in the agriculture sector and ultimately strengthen the country’s food security. It also seeks to boost agricultural exports, the Minister observed. “Among activities to be carried out this year, there is laying a major water channel, decent settlement of the residents [who will be expropriated from the project site] to pave the way for the implementation of the project, and other infrastructures to enable farming activities there such as electricity and roads,” she said. Overall, Mukeshimana said that public spending on agriculture is in line with the overall plan to transform the sector. Under the strategic plan for agriculture transformation, which runs from 2018 to 2024, the government seeks to boost four areas including agricultural innovation and extension; productivity and resilience; inclusive markets and value addition; and enabling environment and responsive institutions. This year’s budget will focus on these priority areas whereby innovation and extension will get more than Rwf6.6 billion; productivity and resilience with over Rwf97.5 billion; inclusive markets and value addition, over Rwf7.1 billion; while enabling environment and responsive institutions: take Rwf8.9 billion share. The project is being implemented in Nyagatare District and Gatsibo District in the Eastern Province of Rwanda. Estimates from the Ministry of Agriculture show that the Gabiro Agribusiness Hub Project seeks to create 4,000 jobs, half of which will be for employment opportunities local communities. The jobs are expected to generate an additional annual income of over $5 million (over Rwf4 billion) to the local community. An estimated 1,402 households will benefit from the project by profiting from lease fees, and allocation of irrigated land. About 400 families will benefit directly through a resettlement plan plus allocation of the equivalent land in the community land serviced with irrigation. Last year, the government signed a $66.5 million (approximately Rwf60 billion) joint venture with Netafim, an Israel-based global leader in the irrigation sector to develop the first phase of the project within 18 months. Generally, the Minister indicated that activities to be funded in the current agriculture financial plan are based on the specific needs of each region of the country. She said that they include farming inputs [such as seeds and fertilisers], tea farming such as expanding tea cultivation area in Nyaruguru District, among others. Meanwhile, Minister Mukeshimana said that there is still a long way to professionalise and commercialise farming practices in the country. She added that the use of inputs mainly quality seeds and fertilisers in order to increase farm productivity also still require more capacity and support to be done effectively. She said that the Ministry is encouraging Rwandans to embrace small livestock farming as it has the potential to improve the livelihoods of families when practised professionally. “Small stock has proven to be very productive, enabling people to get money in a short time and develop, as well as contribute to nutrition improvement among households,” she said.

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How the 2020/2021 agriculture budget will be used