The Government of Rwanda and the World Bank Group today signed US$100 million equivalent to RWF 86.5 billion credit agreement to improve the capacity of selected national public agricultural institutions to increase the enabling of commercialization of agriculture value chains in Rwanda.
The Transformation of Agriculture Sector Program 4, a phase 2 of the Program for Results (PforR2), will support the Government of Rwanda to improve the implementation of its Strategic Plan for Agricultural Transformation (PSTA4) by building a stronger role for private sector engagement in the agriculture sector (including farmer organizations), by having the Government shift from being a market actor to a market enabler.
The PforR Program will improve the structure and capability of MINAGRI in order to strengthen sector analysis, associated policy reforms and design relevant financing mechanisms for attracting private sector investment. It will also focus on specific interventions to improve the quality of public investments in essential services to leverage commercial agriculture, and support fostering competitive agricultural value chains, which requires the provision of critical services to support production, processing, logistics and marketing.
“Program for Results will improve the structure and strengthen the capability to undertake sector analysis, associated policy reforms and introduce relevant financing business models for attracting private sector investment.” Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana said.
“The Bank is pleased to support this second Program for Results which has the potential of achieving transformational results by focusing on the government’s program which aims to leverage and sustain private sector investment in the agriculture sector.” Said Yasser El Gammal. World bank Country Manager.
The World Bank's Program-for-Results (PforR) financing instrument was approved in January 2012 to complement the two existing financing instruments of the Bank: the Development Policy Financing instrument (DPF), which focuses on discrete policy actions within the direct control of governments, and the Investment Project Financing instrument (IPF), the Bank's main instrument to finance investment projects. PforR has been developed to enable the Bank to support the implementation of a government program using the government's own systems, and when the risks to achieving the program's objectives relate to the capacity of the systems to achieve better results.