Press release number: IFAD 38/05

Rome - 7 October 2005 - More than 75,000 rural poor people in Rwanda will benefit from a project that will test innovative farming and livestock practices, strengthen the capacity of farmers associations and local government to deliver services and interact with central government offices, and build a knowledge management system to share technical innovations with farmers throughout the country.

The project is being supported by a US$8.2 million loan and US$200,000 grant from the International Fund for Agricultural Development (IFAD), with cofinancing from the United Kingdom 's Department for International Development and the Government of the Netherlands . The loan agreement was signed today at IFAD headquarters by IFAD Vice President Cyril Enweze and Rwanda 's Minister of State for the Ministry of Finance and Economic Planning, Monique Nsanzabaganwa.

''IFAD's support helped the Government of Rwanda to ensure that their strategy to transform agriculture truly reflected the needs of rural poor people,'' said Enweze. Agriculture contributes 42 per cent of the country's gross domestic product and employs 90 per cent of the population.

The seven-year Support Project for the Strategic Plan for the Transformation of Agriculture responds to a request by the Government to put some of the elements of their national strategy into action. The project will eventually contribute to a sector-wide approach to agriculture in the country, with support from multiple donors.

''This project will aid the Ministry of Agriculture's efforts to transform subsistence farming into market-oriented agriculture,'' said Enweze.

Several innovative farming methods will be tested. Rwanda has favourable climate and soil conditions to grow rice, but yields remain low. Farmers will be able to intensify rice production in marshlands by controlling water levels and sowing times, adopting improved tools and speeding weed control and harvesting by planting in rows.

Hedges will be planted around farming plots on more than 5,000 hectares of land, using shrubs livestock can eat. Hedging prevents erosion and controls animal grazing, and the animals' droppings fertilize the soil.

The project will also introduce a credit system for the purchase of 1,000 improved breed dairy cows, 3,000 sheep and goats, and 800 pigs, helping farmers to increase family income and improve nutrition, especially of children.

Community innovation centres in each of the country's districts will promote information sharing between farmers, extension workers and local officials, including by promoting field visits and offering training. Reports from these centres will feed into a nation-wide information management system on best practices. Television, radio and other media will also help to share information.

Successful innovations will then be replicated elsewhere in the country.

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IFAD is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. Seventy-five per cent of the world's poorest people - 800 million women, children and men - live in rural areas and depend on agriculture and related activities for their livelihoods. Through low-interest loans and grants, IFAD works with governments to develop and finance programmes and projects that enable rural poor people to overcome poverty themselves.

There are 192 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.5 billion. IFAD has invested about US$2.8 billion in these initiatives. Cofinancing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help more than 100 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested almost US$8.7 billion in 690 projects and programmes that have helped more than 250 million poor rural men and women achieve better lives for themselves and their families. Governments and other financing sources in the recipient countries, including project beneficiaries, have contributed about US$8.4 billion, and multilateral, bilateral and other donors have provided about US$6.9 billion in cofinancing.