USAID, MINAGRI Bring Together Private Sector, Promote Agriculture Investment

{{The United States Agency for International Development (USAID) and the Rwandan Ministry of Agriculture (MINAGRI) Thursday hosted the first roundtable meeting with the private sector to facilitate public-private dialogue to spur investment in Rwanda’s agriculture sector. }}

The meeting was a part of Phase II of Rwanda’s Comprehensive Africa Agriculture Development Program (CAADP) process – a process USAID has supported since Rwanda became the first African country to initiate it in 2009.

The meeting allowed private sector representatives – international, regional, and local – to provide inputs to Rwanda’s investment plan by identifying needed policy reforms that ensure private sector involvement, and to explore and discuss formation of public-private partnerships.

Rwanda’s Second Economic Development and Poverty Reduction Strategy (EDPRS II) sets goals of 8.5% annual agricultural growth and 11.5% national annual economic growth; much higher than the recent years’ goals of 5% agricultural growth and 8.5% economic growth.

In order to achieve these ambitious targets, increased private sector investment and enhanced private sector engagement in policy reform will be necessary.

USAID Mission Director Peter Malnak opened the meeting, and praised the reforms Rwanda has made in recent years to improve the business and investment climate, while noting the challenges that remain.

“The agriculture sector, as we’ve seen in the recent past, has immense potential to lift millions out of poverty, but to do so we must continue to nurture private sector investment through dialogue and confronting head-on obstacles in the areas of taxation, high infrastructure costs, workforce skill level, and investor aftercare services” Malnak said.

Increasing private sector competitiveness by addressing key policy issues and market failures is one of USAID’s top priorities in the area of economic growth.

Through the U.S. Government’s Feed the Future initiative, USAID is currently supporting programs like the Rwanda Dairy Competitiveness Program to increase the competitiveness of local agricultural products in key value chains, like dairy, to not only strengthen the private sector but also reduce rural poverty and improve food security and nutrition.

In all of these initiatives, USAID works closely with the Ministry of Agriculture to ensure efforts are contributing to national development goals.

This week’s private sector roundtable precedes the CAADP Phase II business review planned for early June 2014 which will launch the Government of Rwanda’s five year agriculture plan.