US$34 million IFAD loan and grants to strengthen post-harvest interventions and resilience to climate change in Rwanda

Rome, 7 April 2014 – A new project recently launched in Kigali by the  Government of Rwanda and the International Fund for Agricultural Development (IFAD) will advance the country's efforts to reduce post-harvest losses.
The Climate Resilient and Post-harvest Agribusiness Support Project (PASP)  will target  over 32,400 rural households (155,518 people) in 10 districts located in Rwanda's  the north-west, southern and eastern regions will benefit from PASP. The project will provide opportunities for smallholder farmers to acquire the skills, knowledge and access to specialized service providers to create and operate viable businesses capable of delivering larger volumes of improved produce to the market and managing the climate risks in post-production processes.

Under the Government of Rwanda's Crop Intensification Programme (CIP), the total production of maize, wheat and cassava tripled from 2007 to 2011, the production of beans doubled, and the production of rice and Irish potato rose by 30 per cent. Concurrent with the increase in crop production, Rwanda has also seen a shift towards more commercial agriculture. However, post-harvest losses are recognized as one of the greatest sources of inefficiency in agricultural production in Rwanda; and therefore, one of the best opportunities for effectively improving crop productivity and resilience given the country's reliance on rainfed agriculture and its vulnerability to climate change.

The National Adaptation Programme of Action and National Strategy of Rwanda on Climate Change and Low-Carbon Development highlight improved post-harvest management as a key climate change adaptation priority. With multiple cropping systems promoted under CIP, harvesting is now taking place at wetter times of the year, which means that farmers can no longer rely on the sun to dry cereals and pulses to safe moisture-content levels for storage. Higher humidity conditions at harvest are more conducive for development of micro-organisms and insects, causing higher levels of deterioration of crops in storage. In dairy value chains, water scarcity is influencing fodder production, and temperature fluctuations complicate the safe storage, transport and cooling of milk in the supply chain. To buffer this growing range of climate-induced stresses, new agricultural investment programmes need to incorporate improved post-harvest processing and storage techniques.

This is exactly what the PASP will also do. It is supported by an IFAD loan of US$13.45 million and grants of US$13.45 million and US$7 million provided by IFAD's Adaptation for Smallholder Agriculture Program (ASAP). PASP will be strengthened through a US$7 million ASAP grant which will provide incremental support to address the climate-related post-harvest problems in the Crop Intensification Programme crops and dairy, and ensure that appropriate mechanisms are established to safeguard food security.

 "The realization of the Rwanda Vision 2020 will primarily depend on the dynamism of the agricultural sector and in particular the growth and sustainability of food crops in the face of increasing climatic uncertainties. PASP is fully aligned with the Strategic Plan for the Transformation of Agriculture (PSTAIII), which provides the policy framework for the agricultural sector in the country", said Tony Nsanganira, Permanent Secretary of the Ministry of Agriculture and Animal Resources. "Still in the process of being adopted, PSTAIII translates government policy objectives into a comprehensive roadmap to transform Rwanda's agriculture from a subsistence to a knowledge-based, value-creating sector while ensuring food security and preserving natural resources under increasing climatic uncertainty".

"PASP is expected to leverage at least three times the investment being made by the Ministry of Agriculture and Animal Resources from financial institutions as well as viable Public-Private Partnerships and inclusive business partnerships between smallholder farmers and private sector. It should not be any more about scaling up projects, but about scaling up investments and results," said Francisco Pichon, Country Program Manager, International Fund for Agricultural Development (IFAD).
With the total cost of US$83.35 million, the project will be cofinanced by the Government of Rwanda and the beneficiaries through loans from the national commercial banking sector and will be implemented by the Ministry of Agriculture and Animal Resources under the supervision of IFAD.

Since 1981, IFAD has invested a total of US$239.1 million in 15 programmes and projects in Rwanda, with a total cost of US$437.6 million including cofinancing, reaching over 534,300 households.

Notes to Editors: The financing agreement has been signed both by IFAD and the Ministry of Finance and Economic Planning in February 2014 and the ratification documents were submitted to IFAD on 28 March. This reflects the good understanding and collaboration between IFAD and the Government of Rwanda to implement the project without delays.

Press release No.: IFAD/26/2014

The International Fund for Agricultural Development (IFAD) works with poor rural people to enable them to grow and sell more food, increase their incomes and determine the direction of their own lives. Since 1978, IFAD has invested about US$15.6 billion in grants and low-interest loans to developing countries through projects reaching approximately 420 million people and helping to create vibrant rural communities. IFAD is an international financial institution and a specialized UN agency based in Rome – the United Nations' food and agriculture hub. It is a unique partnership of 173 members from developing countries, the Organization of the Petroleum Exporting Countries (OPEC) and the Organisation for Economic Co-operation and Development (OECD).