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Private Sector Development Cluster

The Government of Rwanda and its strategic partners emphasize the need to enable the private sector to play a leading role in economic development and poverty reduction. The Private Sector Cluster is jointly coordinated with the USAID and the Ministry of Commerce, Industry, Investments Promotion, Tourism and Cooperatives. It brings together partners from the private sector, Government, other public institutions, academia, donor agencies, civil society, NGOs, and international agencies. Through this partnership, the Rwandan private sector can be supported in playing its role in economic development and poverty reduction.

The Private Sector Cluster has focused, over the last two years, on providing a forum for information sharing and consultation between all stakeholders. Its goal is to improve the effectiveness, efficiency, and mutual accountability of aid in the development of the commercial sector. In particular, it aims to coordinate the activities of Development Partners through mutual development of Sector Strategies and Plans (SSP).

In 2005, the major joint achievements in the Cluster have been:

• Contributions to the development and adoption of the Diagnostic Trade Integration Study (DTIS) by the GOR, the private sector, donors and other stakeholders,
• Consultations on the commercial sector chapter of the PRS/APR,
• Contributions to the development of the Business Development Services to be launched by the Rwanda Private Sector Federation.

Actions under consideration for 2006 are to:

• Refine the commercial sector section of the PRS/APR for input into the EDPRS,
• Develop a Cluster TOR and plan of action,
• Align donor activities behind the recommendations of the DTIS,
• Ensure that a coherent sector strategy and plans is developed and its implementation followed up,
• Develop a yearly ‘commercial sector review’ which would identify the progress on implementation and the impact of the DTIS study, as well as to update the study and provide recommendations.

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