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Cash injection to aid Rwanda's agriculture sector – Money Matters

September 19, 2012 No Comments »

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A further US$80m has been pumped into the third phase of Rwanda’s Rural Sector Support Project (RSSP) by the World Bank.

The project aims to increase rural investment, infrastructure for marshland, hillside and commodity chain development.

The RSSP five-year first phase which started in 2001 was US$48m while the second phase, which run through 2008 to 2012 was US$35m. This cash boost has helped to speed up the commercialisation of agriculture production.

According to the project’s coordinator Jolly Dusabe the third phase will build on the success of the first and second phase and look to increasing agricultural production in the marshlands it is targeting as well as strengthen participation of farmers in market based value chains.

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Speaking at the launch of the project's third phase earlier this week, the Minister of Agriculture, Agnes Kalibata, said it had contributed towards enhancing economic lives of the rural poor.

She said: "By the end of the third phase we should be generating about Rwf60 billion every year from project related activities."

The Minister also noted that the project has helped in increasing rice production, bolstering the country's food security.

The country produces 47,000 metric tonnes of rice every year up from less than 5,000 before 2001. The output is 8,000 metric tonnes short of the country's annual consumption of 55,000 tonnes.

Omowunmi Mimi Ladipo, the World Bank Country Representative for Rwanda said "This financing will go towards achieving a consolidation of achievement under the Rural Sector Support Project 1 and 2 and the third phase will act in many ways the bridge to what comes up next for Rwanda in moving up the value chain.”

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