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Agri-productivity could improve thanks to a new World Bank Group's credit line.The Government of
Rwanda and World Bank Group yesterday signed a $46 million (approx.
Rwf38 billion) loan to support farming across the country.
The money is part of the International Development Association (IDA) funding agreed upon back in 2014.
Amb. Claver Gatete,
the Minister for Finance and Economic Planning, and Yasser El-Gammal,
the World Bank country director, signed on behalf of the parties.
The financing will
be used to support the third phase of four broad programmes aimed at
transforming agriculture across the country, Minister Gatete said during
the signing ceremony in Kigali.
"The financial
agreement provides additional support to the already existing
government's efforts to improve and diversify the country's agriculture
sector," Gatete added.
According to Jean
Claude Kayisinga, the permanent secretary, Ministry of Agriculture and
Animal Resources, the fund will help increase the sector productivity
focusing mainly on land terracing, irrigation and livestock.
"Specifically, the
funds will be used for agriculture and animal resource intensification,
research, technology transfer and professionalisation of farmers,"
Kayisinga, noted.
He added that part of the funds was allocated toward value chain development, private as well as institutional development.
"In addition, the
new financing will support the ministry to both finalise the development
of the new National Agriculture Policy," he said.
The project is
designed to help improve food and nutrition security for the rural
population, including increasing agro-processing to create non-farm
employment.
It will support
government's efforts to increase commercialisation of agriculture
production, such as securing and strengthening domestic and
international markets, while increasing exports and reducing imports.
It is also expected to enhance enabling environment to attract the private sector to invest and add value.
"This additional
credit line is part of World Bank's efforts to continue supporting
government's on-going efforts towards expanding and sustaining the
increased productivity gains that have contributed to strong agriculture
growth and raised rural incomes, thus reducing poverty levels," said
El-Gammal, the WB country director.
In 2014, the World Bank approved $60.9 million (about Rwf50 billion) to support infrastructure and agriculture sectors.
Part of the money
was to be used to finance feeder road infrastructure development,
agri-production and market accessibility by farmers.
Agriculture employs
more than 72 per cent of the population and contributed about 33 per
cent to the national economy during the third quarter of 2016.
Though the
government targets 8.5 per cent growth rate for the agriculture sector
by 2018, the sector grew by only 6 per cent during the third quarter of
2016.
The government is counting counting on agriculture for economic resilience and sustainability during 2017.
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