Gov’t spending on agriculture bears fruits

STATISTICS from the National Bank of Rwanda (BNR) show that the national food yield in the first quarter, from January to March this year, increased by 6.2 percent to 5.079 million tons from 4.783 million tons in the same period last year. This means that Rwanda is becoming more food secure, thanks to the government green revolution policy, conducive climatic conditions and increase in the use of fertilizers. Since 2007, the agriculture sector has played an important role in the development of Rwanda’s economy following government’s aggressive strategies, that encourage timely application of fertilizers, pesticides, terracing and increased spending, as well as diversification of the sector. Rwanda has opened up the sector to foreign and local investment, with much needed emphasis on investment in agri-processing. All these initiatives coupled with many fiscal and non-fiscal incentives have occasioned the high output in agriculture, leading to the fall in food prices even at a time when fuel prices were soaring. This has helped contain Rwanda’s inflation to single digits throughout 2009 and 2010. The Central Bank announced that despite a sensitive decline in the production of paddy rice and sorghum, overall production in cereals increased by 25.15 percent due to the growth in maize and wheat production. The majority of the Rwandan population depends on agriculture. So, increased public spending in the sector is needed in order to maximize its benefits. Ends

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Gov’t spending on agriculture bears fruits