Kigali May 16, 2019: The Government of Rwanda and World Bank today signed an additional financing agreement worth US$ 71 million (approximately Frw 64 Billion) for the Transformation of Agriculture Sector Program 4 Program for Results (PforR) Phase 2.
Dr. Uzziel Ndagijimana, Minister of Finance and Economic Development and Hafez Ghanem, World Bank Vice President for Africa Region signed on behalf of their respective institutions
The additional financing will support the ongoing results-driven process of transforming the agriculture sector to address challenges of leveraging private sector investment. US$ 17 Million of this financing will be disbursed in the current fiscal year and the remaining will in two subsequent years.
The agriculture PSTA4 focuses on four main areas to transform agriculture namely
a) Policy and Organizational Reform
b) Enabling Agricultural Commercialization
c) Delivery of Improved Agricultural Value Chain Services
d) Efficiency in Public Expenditures to leverage Private Sector Financing.
Speaking after the signing, Minister Ndagijimana said: “Agriculture sector is the backbone of our economy and is of critical importance to the livelihoods of Rwanda. This financial support is therefore critical in transforming the sector especially in the rural sector and ensure sustainability.”
The World Bank has been supporting Agriculture sector for many years. Of recent, the World Bank through Agriculture PforR provided US$ 146 Million and the related Multi-Donor Trust Fund financing. This is in addition to Land Husbandry, Water Harvesting and Hillside Irrigation Project (LWH) and Rural Sector Support Project (RSSP), phases 1-3, which achieved commendable results in helping to transform Rwanda’s rural farming sector.
“I would like to acknowledge the efforts of the Government of Rwanda and World Bank teams who worked tirelessly together to prepare this project.” said Ghanem. “The World Bank will continue to support the project as it moves into the implementation phase”.
The financing signed today is in addition to US$ 100 Million signed in June 2018 for the Transformation of Agriculture Sector Program 4 PforR Phase 1