Private sector critical for agricultural transformation

Over the last couple of years, Rwanda’s agriculture has undergone steady transformation. It all began with the realisation that being an agrarian economy, Rwanda cannot realise her long-term development goals without maximising its potential in the agriculture sector, which employs more than 80 percent of the population. This required putting in place policies that would help improve both the quality and quantity of produce, and creating an environment that boosts the entire value chain in this lucrative industry. The bulk of the initial investments to facilitate the process have come from government. And, the same applies to the new huge projects being developed, that aim to integrate new technologies into the sector, including irrigation or mechanization. Nonetheless, there is need to complement such public investment with private resources in order to boost the sector which, no doubt has unlimited returns. There are already positive signs that the private sector is heeding such calls. But more needs to be done. Statistics indicate that the agriculture sector took 20 percent of total investments inflows last year. While this is a good starting point, considering that other sectors have traditionally caught the eyes of investors, there is need for more concerted action and incentives to help attract more private players, both foreign and local, into the sector. Ends

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Private sector critical for agricultural transformation