World Bank approves US$60M for Agriculture, infrastructure

Part of the funds will be used to intensify farmer’s agricultural productivity as

part of the strategy to reduce poverty and boost shared prosperity throughout

the country

The World Bank, through International Development Association (IDA) has approved US$60.9Million (Over Rwf41billion) to improve Rwanda’s agriculture and infrastructure sectors.

The funds will be used to upgrade road conditions in the country and intensify farmer’s agricultural productivity as part of the strategy to reduce poverty and boost shared prosperity throughout the country.

The World Bank’s country Manager, Carolyn Turk said that the pledge is a result of Rwanda’s exceptional efforts in implementing programmes designed to fight poverty in the country.

“The Rwandan Government has implemented several ambitious programs designed to improve and diversify the country’s agriculture sector as a key strategy to fight poverty. Today’s financing provides additional support to continue this success while helping to ensure food security, improve health, and reduce poverty for the country’s large rural population,” said Turk.

The funds will be dispatched to the country’s rural areas to enhance crop productivity, rehabilitation of roads as well as boosting farmers’ incomes.

The first US$45 million IDA credit supports the Feeder Roads Development Project (FRDP), designed to improve conditions on all-season roads that connect to major agricultural market centers.

According to FRDP officials, the funds will support road works for about 270 kilometers of feeder roads in four of the country’s districts of Karongi and Nyamasheke in Western Province, Rwamagana in Eastern Province) and Gisagara in Southern province.

Tesfamichael Nahusenay Mitiku, World Bank’s task team leader for FRDP project said that the funds will reduce costs incurred by farmers to access markets.

“Insufficient all-season road connectivity has contributed to very high transport costs and created difficulties for farmers seeking to improve their agricultural productivity and incomes. The Feeder Roads Development Project will help make transport easier, improve food security, and provide opportunities for the most vulnerable to lift themselves out of poverty,” he said

The FRDP is designed as an integral part of the agricultural support initiatives in Rwanda and will help farmers to transport key agricultural inputs, like seeds and Fertilizers and move their crops and products to market.

The project, coupled with the ongoing agriculture projects, is expected to directly benefit about 439,000 people in the above Districts with approximately 50 percent female beneficiaries.

The second IDA credit of US$15.9 million provides additional financing for the 3^rd Rural Sector Support Project phase (RSSP 3), which is also focused on activities that will increase and diversify agriculture productivity, which comes as a boost to the country’s achievement of the Second Economic Development and Poverty Reduction Strategy (EDPRSII) where vulnerable Rwandans are set to benefit from the programme. 101,500 rural residents are expected to benefit from RSSP 3^rd phase by 2018.

“Agriculture remains the backbone of Rwanda’s economy and the majority of households in the country are engaged in some sort of crop or livestock production activity,” said Valens Mwumvaneza, World Bank’s team leader for the RSSP 3.

The official added that: “I look forward to continuing efforts to enhance agriculture productivity, which is widely regarded as the major catalyst for growth and poverty reduction in Rwanda.”

Currently, RSSP3 extends and builds upon the results of RSSP 1 and 2, and will expand irrigation in cultivated marshlands, promote sustainable land management practices on hillsides, and rehabilitate and build infrastructure to support new agriculture-based products.

The funds will also support capacity building for farmers’ organizations, cooperatives, and value chain development to support these results beyond the life of the project.

The new approval of funds by the World Bank will extend the project to October 30, 2018 to ensure a smooth implementation of the additional resources.