Republic of Rwanda Country Strategic Opportunities Programme 2019 – 2024

Introduction

This document outlines the Country Strategic Opportunities Programme (COSOP) for Rwanda, covering the period 2019-2024, and presents IFAD’s strategic plan for contributing to poverty reduction and rural development in the country. It is designed for policymakers, development practitioners, and other stakeholders involved in agricultural and rural development in Rwanda. The document offers insights into IFAD’s approach to supporting Rwanda’s development agenda, with a focus on empowering rural communities, enhancing agricultural productivity, and building resilience to climate change.

Key Insights

Country Context and Rural Sector Agenda

Between 2000 and 2016, the Rwandan economy grew by an impressive average of 7.9 per cent a year, while GDP per capita increased from US$242toUS$729 (National Institute of Statistics of Rwanda (NISR), National Accounts, 2016). However, Rwanda remains a low-income country with a highly dense population, and agriculture employs 70 per cent of the active population, provides 91 per cent of the food supply and 70 per cent of export revenues, and contributes 32.7 per cent of the country’s GDP. (EB 2019/126/R.13/Rev.1, p.1)

Government Policy and Institutional Framework

Rwanda’s long-term development goals are defined in the Vision 2020 and Vision 2050 documents, which focus on transforming the country from a low-income agriculture-based economy into a knowledge-based, service-oriented economy with middle-income status. The 4th Strategic Plan for the Transformation of Agriculture 2018-2024 (PSTA 4) provides guidelines for strategic action and priority investments designed to transform the sector. (EB 2019/126/R.13/Rev.1, p.2)

IFAD Engagement: Lessons Learned

Partnership with the private sector through public-private-producer partnership models and the hub approach successfully formalize agribusiness linkages between farmers and buyers, helping buyers become co-investors and farmers to access financial services and output and input markets (EB 2019/126/R.13/Rev.1, p.3). Further tailored capacity-building support incorporating a graduation model and the involvement of farmers’ organizations’ apex bodies is required for cooperatives (EB 2019/126/R.13/Rev.1, p.4).

Country Strategy

The overall objective of the COSOP for 2019-2024 is to reduce poverty by empowering poor rural men, women and youth to participate in the transformation of the agriculture sector and to enhance their resilience. In line with PSTA 4, the priority value chains are maize, Irish potatoes, beans, horticulture, rice, dairy products, small livestock and export crops (coffee, tea, horticulture and sericulture). (EB 2019/126/R.13/Rev.1, p.5)

Overall Goal and Strategic Objectives

Strategic objective 1 (SO1): To sustainably increase agricultural productivity in priority food and export value chains. Strategic objective 2 (SO2): To improve post-harvest processes and strengthen market linkages (EB 2019/126/R.13/Rev.1, p.6).

Menu of IFAD Interventions

The lending portfolio to support government investments will include three projects (PRICE, PASP, RDDP) designed under the previous COSOP and potentially two new projects (KIIWP and PRISM). (EB 2019/126/R.13/Rev.1, p.7)

Key Strategic Partnerships and Development Coordination

IFAD will remain an active member of the Agriculture Sector Working Group, in which the Government of Rwanda and development partners discuss sector and cross-sector strategies, programmes and progress in implementation (EB 2019/126/R.13/Rev.1, p.11). IFAD is a signatory to the second United Nations Development Assistance Plan for Rwanda 2018-2023 (UNDAP II), in which agriculture is included in the strategic result area for the economic transformation pillar (EB 2019/126/R.13/Rev.1, p.11).

Financial Envelope and Cofinancing Targets

The COSOP 2019-2024 will cover two IFAD PBAS cycles: US$54.4millionforIFAD11(2019-2021)andapproximatelyUS$60 million for IFAD12 (2022-2024) (EB 2019/126/R.13/Rev.1, p.10).

Key Statistics & Data

• Financial inclusion had increased from 48 per cent in 2008 to 89 per cent by 2016 (EB 2019/126/R.13/Rev.1, p.1).
• Agriculture employs 70 per cent of the active population, provides 91 per cent of the food supply and 70 per cent of export revenues, and contributes 32.7 per cent of the country’s GDP (EB 2019/126/R.13/Rev.1, p.1).
• The overall COSOP objective is to reduce poverty by empowering at least 350,000 households, representing 1.4 million household members (EB 2019/126/R.13/Rev.1, p.5).
• Women from female-headed households and male-headed households account for 50 per cent of the target group (EB 2019/126/R.13/Rev.1, p.5).

Methodology

This document is based on a review of existing literature, statistical data, and consultations with key stakeholders involved in agricultural and rural development in Rwanda. It includes analysis of previous IFAD-supported projects, government policies, and relevant sector strategies. The information was synthesized to develop a strategic plan for IFAD’s engagement in Rwanda from 2019-2024.

Implications and Conclusions

The IFAD COSOP for Rwanda 2019-2024 presents a comprehensive strategy for supporting agricultural and rural development in Rwanda. The key implications of this strategy include:

• Poverty Reduction: By empowering rural communities and enhancing agricultural productivity, the COSOP aims to contribute significantly to poverty reduction in Rwanda.
• Enhanced Resilience: Promoting climate-smart technologies and practices will help build resilience to the impacts of climate change, ensuring sustainable development in the long term.
• Strategic Partnerships: Collaboration with government, UN agencies, and other development partners is essential for achieving the COSOP’s objectives and maximizing its impact.
• Innovation and Scaling Up: Emphasis on innovative approaches and scaling up successful interventions will promote efficiency and effectiveness in achieving development outcomes.