October 2017 This FY 2017 Annual Progress Report was produced for review by the United States Agency for International Development (USAID). It was prepared by International Resources Group for the Rwanda PSDAG Project. RWANDA PRIVATE SECTOR DRIVEN AGRICULTURAL GROWTH (PSDAG) FISCAL YEAR (FY) 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 Cover photo: Tuzamurane Cooperative employees processing fresh organic pineapples for export markets, [REDACTED] District (Photo by Wil Boaz, RTI International
206
Embed
pdf.usaid.govpdf.usaid.gov/pdf_docs/PA00ST9Q.pdf2018-02-22Rwanda Institute of Cooperatives, ... large and their size too small to load and display in a user-friendly manner on an online
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
October 2017 This FY 2017 Annual Progress Report was produced for review by the United States Agency for International Development (USAID). It was prepared by International Resources Group for the Rwanda PSDAG Project.
Annual Progress Report: October 1, 2016 – September 30, 2017
DISCLAIMER This FY 2017 Annual Progress Report was made possible through support provided by the U.S. Agency for International Development, under the terms of contract no. AID-696-C-14-00002. The opinions expressed herein are those of Research Triangle Institute and do not necessarily reflect the views of the U.S. Agency for International Development or the United States Government.
THIS PAGE INTENTIONALLY LEFT BLANK
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2017– SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | III
1.1 OBJECTIVE 1: ASSIST Government of Rwanda (GOR) TO INCREASE PRIVATE SECTOR INVESTMENT ............................................................................................................................ 13 1.1.1 IMPROVING INVESTMENT PROMOTION .................................................................. 14 1.1.2 IMPROVING PUBLIC-PRIVATE DIALOGUE ............................................................... 22 1.1.3 ENHANCING THE BUSINESS ENABLING ENVIRONMENT ...................................... 31 1.1.4 INSTITUTIONAL STRENGTHENING AND CAPACITY BUILDING ............................. 37
1.2 OBJECTIVE 2: FACILITATE INCREASED PRIVATE SECTOR INVESTMENT TO UPGRADE VALUE CHAINS ......................................................................................................................... 43 1.2.1 SELECTION AND APPROVAL OF PSDAG PRIVATE PARTNERS ............................ 44 1.2.2 OBJECTIVE 2.1.1: IMPROVING ACCESS TO RAW MATERIALS.............................. 46 1.2.3 OBJECTIVE 2.2.2: IMPROVING KNOWLEDGE OF STANDARDS ............................. 83 1.2.4 OBJECTIVE 2.2.3: IMPROVING ACCESS TO PACKAGING MATERIALS
AND SOLUTIONS ......................................................................................................... 84 1.2.5 OBJECTIVE 2.2.4: IMPROVING ACCESS TO FINANCE FOR FARMERS
AND AGRIBUSINESSES .............................................................................................. 87
2. MONITORING & EVALUATION AND CROSS-CUTTING THEMES ········································· 94
2.1 Monitoring and Evaluation .......................................................................................................... 94 2.1.1 FY2017 M&E Plan ......................................................................................................... 94 2.1.2 Performance Tracking and Reporting ........................................................................... 95 2.1.3 Capacity Building for Private Sector Partners ............................................................... 95 2.1.4 Use of ICT ..................................................................................................................... 95 2.1.5 Data Quality Assessment (DQA) .................................................................................. 96
2.2 Social Inclusion .......................................................................................................................... 97 2.2 Communication .......................................................................................................................... 99
2.2.1 Marking and Branding ................................................................................................... 99 2.2.2 Media Coverage ............................................................................................................ 99 2.2.3 Success Stories .......................................................................................................... 100
2.3 Capacity Building and Knowledge Management ..................................................................... 101 2.3.1 PSDAG Staff Capacity Building .................................................................................. 101 2.3.2 Business Development Services ................................................................................ 102 2.3.3 Capacity Building Support to Partners ........................................................................ 103
3. PARTNERSHIPS AND LINKAGES ················································································· 106
3.1 USAID Community Health and Improved Nutrition (CHAIN) Partners ..................................... 106 3.2 World Food Program (WFP) .................................................................................................... 106 3.3 MINAGRI/ RCA/NCCR/Cooperative development program .................................................... 106 3.4 World Bank and The UK Department for International Development (dfid) ............................. 107 3.5 DFID Projects in Support of MINAGRI ..................................................................................... 107 3.6 GIZ 107 3.7 TradeMark East Africa ............................................................................................................. 108 3.8 Access Finance Rwanda (AFR) ............................................................................................... 108 3.9 Clinton Development Initiative (CDI) ........................................................................................ 109
PAGE | IV PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL
3.10 KENYA COMMERCIAL BANK (KCB) rwanda ......................................................................... 109 3.11 USAID Climate Services for Agriculture Project ...................................................................... 109 3.12 USAID HD Project .................................................................................................................... 109 3.13 HINGA WEZE........................................................................................................................... 110 3.14 East Africa Trade and Investment Hub (EATIH) ...................................................................... 110
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2017– SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | V
TABLE 2. KEY ISSUES IDENTIFIED THROUGH LOCAL PPD “MEETS THE COMMUNITY” EVENTS 24
TABLE 3. NYAGATARE DISTRICT AGRI-PPD MEETINGS ON WATER SHORTAGE CONSTRAINTS 25
TABLE 4. PPD ACTIVITIES PER DEVELOPMENT PARTNER ···················································· 26
TABLE 5. INSTITUTIONAL STRENGTHENING GRANT APPLICATIONS ····································· 31
TABLE 6. SUGGESTED SERVICES AT EXPORT AGGREGATION CENTER ································ 32
TABLE 7: RESULTS FROM PSDAG'S SUPPORT TO INPUT SUBSIDY DISTRIBUTION PROGRAM · 34
TABLE 8: SELF-REPORTED AVERAGE INCOME STATEMENTS OF AGRODEALERS BY SIZE ····· 35
TABLE 9. CAPACITY BUILDING ASSESSMENT FINDINGS AND RECOMMENDATIONS ··············· 38
TABLE 10: SUMMARY OF FY2017 RESULTS FROM PSDAG GRANT ACTIVITIES BY VALUE CHAIN 43
TABLE 11: SUMMARY OF PARTNER COMPETITION, SELECTION PROCESS, GRANT FUNDING, AND PARTNER LEVERAGE ··························································································· 44
TABLE 12. COOPERATIVE ASSESSMENTS COMPLETED BY VALUE CHAIN ····························· 71
TABLE 14. PSDAG’S SUPPORT TO PRIVATE PARTNERS ON INTERNATIONAL QUALITY STANDARDS ··············································································································· 83
TABLE 15. EXAMPLES OF PSDAG PARTNERS INVESTING IN PACKAGING ······························ 85
TABLE 16. AGRI-INSURANCE PRODUCTS PRESENTED DURING THE STAKEHOLDERS’ ROUNDTABLE WORKSHOP ·························································································· 92
TABLE 17. INDICATOR REPORTING FREQUENCY—CHANGED FROM QUARTERLY TO ANNUAL REPORTING ················································································································ 94
TABLE 19. SUMMARY OF SUCCESS STORIES IN FY2017 ····················································· 100
TABLE 20. PROVISION OF BDS TO PSDAG PRIVATE SECTOR PARTNERS ···························· 102
TABLE 21. CAPACITY BUILDING ACTIVITIES SUPPORTED BY PSDAG THROUGH ITS PRIVATE PARTNERS ··············································································································· 103
PAGE | VI PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL
ABBREVIATIONS
AFR Access Finance Rwanda
Agri-PPD Agricultural Public Private Dialogue
Agri-SME agricultural small and medium enterprise
APTC Agro Processing Trust Corporation
AIF African Improved Food
ALIS Agricultural Land Information System
APS Annual Program Statement
ASIP-II Agriculture Sector Investment Plan
ASWG Agriculture Sector Working Group
BDS business development services
BRD Banque Rwandaise de Development (Rwanda Development Bank)
CBO community-based organization
CDI Clinton Development Initiative
CEO Chief Executive Officer
CESB Capacity Development and Employment Services Board
CHAIN Community Health and Improved Nutrition
CIAT International Center for Tropical Agriculture
CIP International Potato Center
COP Chief of Party
CPP Cooperative Professionalization Program
DFID Department for International Development (UK)
DOC Day-Old Chicks
DPs Development Partners
DQA Data Quality Assessment
EATIH East Africa Trade and Investment Hub
EDC Education Development Center
EIA Embedded Investment Advisor
ENAS Enterprise Nkubiri & Sons
ERR Environmental Review Reports
EUCORD European Cooperative for Rural Development
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2017– SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | VII
FAMA Farm to Market Alliance
FAO Food and Agriculture Organization of the United Nations
FFS Farm Field School
FTF Feed the Future project (USAID)
GAP Good Agriculture Practices
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit
GOR Government of Rwanda
GSA Green Systems Africa
GSI Gender and Social Inclusion
ha hectare
HACCP Hazard Analysis Critical Control Point
HD Huguka Dukore
ITC information communication technology
IFC International Finance Corporation
IRG International Resources Group
ISU Investment Support Unit
KCB Kenya Commercial Bank
kg kilogram
KWMFP Kigali Wholesale Market for Fresh Produce
M&E Monitoring and Evaluation
MCC Milk Collection Center
MINAGRI Ministry of Agriculture and Animal Resources
MINALOC Ministry of Local Government
MINEACOM Ministry of Trade and East African Community Affairs
MINECOFIN Ministry of Finance and Economic Planning
MINICOM Ministry of Commerce Trade and Industries
MINIMEX Les Minoteries Industrielles Import-Export
MIS Management Information System
MOU Memorandum of Understanding
MSME Micro/Small and Medium Enterprises
NAEB National Agricultural Export Development Board
NAIPS National Agribusiness Investment Promotion Strategy
PAGE | VIII PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL
PASP Post-Harvest and Agribusiness Support Project
PCC Potato Collection Center
PEBEC Producing and Export Bird’s Eye Chili
PPD Public Private Dialogue
PPP Public-Private Partnership
PSDAG Private Sector Driven Agricultural Growth
PSF Private Sector Federation
PSTA-III Strategic Plan for the Transformation of Agriculture, phase 3
PSTA-IV Strategic Plan for the Transformation of Agriculture, phase 4
PWD People with Disabilities
RAB Rwanda Agricultural Board
RCA Rwanda Cooperative Agency
RCAL Rwanda Chamber of Agriculture and Livestock
RDB Rwanda Development Board
REMA Rwanda Environmental Management Authority
RFA Request for Applications
RGCC Rwanda Grains Cereals Corporation
RPPDS Rwanda Public Private Dialogue Secretariat
RSB Rwanda Standards Board
RTI RTI International
RWF Rwandan franc
SACCO Savings and Credit Cooperative
SAF Spatiotemporal Apps Framework
SAIS Smart Agriculture Information System
SID Strategic Investment Department
SMEs small and medium enterprises
SMS Short Message Service
SOW Statement of Work
SPU Safe Pesticide Use
STTA Short-Term Technical Assistance
SUAP Safe User Action Plan
t metric ton
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2017– SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | IX
TMEA TradeMark East Africa
TOT Training of Trainers
USAID United States Agency for International Development
USD United States Dollars
VCCF Value Chain Competitiveness Fund
WFP World Food Program
PAGE | 10 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
1. EXECUTIVE SUMMARY The Private Sector Driven Agricultural Growth (PSDAG) project is a five-year (August
2014–August 2019) USAID-funded initiative implemented by International Resources
Group (IRG), a subsidiary of RTI International. The goal of PSDAG is to increase
incomes of smallholder farmers by promoting private sector investment through two
complementary objectives:
(1) to assist the Government of Rwanda (GOR) to increase private sector investment,
and
(2) to facilitate increased private sector investment by upgrading agricultural value
chains.
This is the Annual Progress Report for Fiscal Year (FY) 2017 for the period October 1,
2016–September 30, 2017. The report covers the following areas of project
management and implementation: Project Performance by Objectives; Monitoring and
Evaluation (M&E) and Cross-Cutting Themes (including Social Inclusion); and
Partnerships and Linkages.
Achievements under Objective 1: Under this objective, PSDAG supports government
efforts in increasing private sector investments. In 2017, PSDAG worked closely with the
Ministry of Agriculture and Animal Resources (MINAGRI), the Rwandan Development
Board (RDB), and the National Agricultural Export Development Board (NAEB). Further,
we finalized a number of Memorandum of Understandings (MOU) this year, including
with 1) with Private Sector Federation (PSF) to implement Agricultural Public-Private
Dialogue (Agri-PPD) activities, 2) a MOU with Rwanda Development Board (RDB) to
collaborate in improving investment promotion in agriculture sector.
PSDAG finalized capacity needs assessments for GOR and other institutions -
MINAGRI, RDB, Rwanda Private-Public Dialogue Secretariat (RPPD), the Chamber of
Agriculture and Livestock (RCAL), and NAEB that have a mandate to support investment
promotion. A pilot capacity building program to address identified gaps is under
development to be implemented during FY2018. Finally, PSDAG continued to support
government efforts in increasing private sector investment through the support of two
Embedded Investment Advisors (EIAs) stationed at MINAGRI and RDB.
In 2017, PSDAG made progress on the following agricultural business enabling
environment policies and strategies:
1) Finalized the National Agribusiness Investment Promotion Strategy (NAIPS) and
included Pillar IV, Professionalization of the Supply Chain.
2) Facilitated private sector input to the drafting of the Fourth Strategic Plan for the
Transformation of Agriculture (PSTA-IV),
3) Finalized the support to MINAGRI in budget planning for FY2017/18 that resulted in
approval of budget allocation for the Smart Agriculture Information System (SAIS)
and Agriculture Land Information System (ALIS).
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 11
Additionally, PSDAG 1) continued to support upgrading of ALIS, 2) phased-out support
to the National Input Subsidy Distribution Program, 3) collaborated with National
Agricultural Export Development Board (NAEB) to develop an Export Commodity
Aggregation Services Model, 4) continued to implement the GOR guidelines on
marketing Irish potatoes through Potato Collection Centers (PCCs), 5) supported
MINAGRI to conduct Poultry Competitiveness Study, Day Old Chick Addendum, which
contributed to $[REDACTED]M investments in the poultry sub-sector, and 6) in
collaboration with MINAGRI and AgriProfocus, facilitated stakeholder consultations on
Contract Farming.
Achievements under Objective 2: Under Component 2, IRG is using a Value Chain
Competitiveness Fund (VCCF) to catalyze relationships between investors, financial
institutions, and investment facilitators and to demonstrate value-enhancing innovations
and reduce risk. A dedicated portion of the fund is reserved for grants that support
women, youth, and persons with disabilities (PWD).
During FY2017, PSDAG continued with implementation of project activities under
various grant mechanisms including 28 grants under the Value Chain Competitiveness
Fund (VCCF); 13 grants under Farmbook and Potato Collection Center (PCC)1 Upgrade
Grants; 33 Maize Grants through cooperatives; and 16 new partnerships with Agri-SMEs
under the VCCF. Aggregate results from all of PSDAG’s partnerships with the private
sector include:
• $5,484,770 gross income for 85,234 farmers (40,910 women);
• $1,328,535 in new capital investments;
• $5,845,500 in exports of agricultural products;
• $2,683,944 in incremental sales (collected at farm level);
• $11,076,001 in value-added domestic sales;
• 101 new jobs (43 women) created by PSDAG private sector partners; and
• $2,923,745 in loans and credit to upgrade agricultural business models.
Under the FY2016 APS to create partnerships with private sector partners. PSDAG
released four RFAs under the FY2017 APS: 1) Cooperative Professionalization; 2)
Asset-Based Financing; 3) Institutional Capacity Strengthening; and 4) Women, Youth
and People with Disabilities (PWD) in Entrepreneurship and Leadership Program.
Selection of partners under these RFAs is underway and expected to be finalized by end
of Q1 FY2018.
PSDAG entered into MOU partnerships with three institutions: 1) MOU with BRD to
increase its capacity to develop appropriate products and increase lending to agricultural
value chain actors, 2) MOU partnership with KUMWE Logistics to help the company
mobilize capital financing, and 2) MOU with Kenya Commercial Bank (KCB) Rwanda to
increase access to finance for the project partners.
1 MINICOM in collaboration with FECOPORWA and other partners developed a concept paper on the organization of Irish potato value chain in 2015. The PCC concept paper was never ratified into legislation or policy.
PAGE | 12 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Under Cooperative Professionalization Program (CPP), PSDAG signed MOUs with 60
cooperatives that will be supported to improve their governance, planning, member
services, operations, market linkages and access to finance. PSDAG began to provide
technical assistance to these cooperatives on Business Development Services (BDS)
and Quality Management Standards (QMS).
In addition, progress was made toward achieving project deliverables and goals under
M&E and Cross-Cutting Activities as reported under Section 3. Progress on partnerships
and linkages with other partners is discussed under Section 4.
Challenges: PSDAG experienced challenges with implementation of planned activities
under Objective 1. The MOU with RDB was which was planned to have been signed
early in Q1 was signed in Q4 due to restructuring and staff changes. Consequently,
there were delays in implementation of eight planned activities. In addition, during MOU
negotiations with RDB, three of the activities originally requested by RDB and included in
the FY2017 Work Plan were dropped. At the same time, although PSDAG signed a
MOU with PSF/RCAL in Q3 to implement Agri-PPD activities, modalities of funding
activities under this partnership have taken longer than anticipated. This and coupled
with changes at the RPPD Secretariat (staff changes), resulted in delay in
implementation of planned Public-Private Dialogue (PPD) activities, both at the district
and national levels.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 13
1. PROJECT PERFORMANCE 1.1 OBJECTIVE 1: ASSIST GOVERNMENT OF RWANDA (GOR)
TO INCREASE PRIVATE SECTOR INVESTMENT
During FY2017, PSDAG supported completion of at least one stage of the following 11
Agricultural Business Enabling Environment policies, strategies, frameworks and or
guidelines as shown in Table 1.
Table 1. FY2017 Objective 1 milestones
Policy, Strategy, Framework, and Guideline A C/V D/R A/P I
1. National Agribusiness and Investment Promotion Strategy (NAIPS) X X X X
2. Agricultural Land Information System (ALIS) X X X X X
3. Poultry Competitiveness Day Old Chick Study (Addendum to Poultry Competitiveness Study)
X
4. Fourth Strategic Plan for the Transformation of Agriculture (PSTA-IV) X X X
5. Budget allocation for the Smart Agriculture Information System (SAIS) and ALIS for GOR FY2017/2018 to FY 2023/2024
X X X X
6. National Input Subsidy Distribution Program X
7. Pilot National Agricultural Public Private Dialogue (Agri-PPD) Framework X X X
8. Export Commodity Aggregation Services Model X
9. GOR Guidelines on marketing Irish potatoes through Potato Collection Centers (PCCs)
X
10. Contract Farming X X
11. Investment Promotion Marketing Strategy/Materials X
A = Analysis C/V = Consultation/Validation D/R = Draft/Revision A/P = Approval/Publication I = Implementation
In addition to these policies, strategies, frameworks, and guidelines progress was made
on the following initiatives to support the investment promotion framework:
• Completed capacity needs assessment for GOR and other institutions (Ministry
of Agriculture and Animal Resources [MINAGRI], RDB, RPPD Secretariat, RCAL,
and National Agricultural Export Development Board [NAEB]) that have a
mandate to support investment promotion. In consultation with these GOR
institutions, PSDAG is designing a pilot capacity building program to address
identified gaps. The proposed capacity building program will be implemented
during FY2018.
PAGE | 14 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
• PSDAG and PSF signed a Memorandum of Understanding (MOU) partnership to
facilitate provision of technical and financial assistance to RCAL, and
collaboration on pilot national and district-level PPD processes.
• PSDAG signed an MOU with RDB to collaborate on improving investment
promotion in the agriculture sector. Key activities planned in this MOU with RDB
include: Development of agriculture land use and management guidelines,
development of agriculture investment databank, improvements to investment
promotion marketing materials and activities, and land profiling for commercial
farming. Implementation of these activities began late in Q4 and will continue into
FY2018.
• PSDAG published a Request for Applications (RFA) for institutional
strengthening for private sector advocacy in agriculture grants. Under this RFA,
PSDAG will offer technical assistance and capacity building aimed at
strengthening the functional and operational efficiency of eligible institutions and
associations to engage with the GOR on policy advocacy. Selection of partners is
underway.
Finally, PSDAG supported government efforts to increase private sector investments
through the support of two Embedded Investments Advisors (EIAs) stationed at
MINAGRI and RDB. The advisors assisted in investment promotion and privatization
activities with interested new investors, provided after-care support to current investors,
and provided technical support to privatization activities for various MINAGRI flagship
projects.
1.1.1 IMPROVING INVESTMENT PROMOTION
ACTIVITY 1: THE NATIONAL AGRIBUSINESS STRATEGY, IMPLEMENTATION, AND CAPACITY BUILDING
National Agribusiness Investment Promotion Strategy (NAIPS)
During FY2017, PSDAG in consultation and
collaboration with other stakeholders
(MINAGRI, the World Bank/International
Finance Corporation [IFC], and Department for
International Development [DFID]) supported
the analysis, and review of the NAIPS (Figure
1). The main purpose of the NAIPS is to
promote increased private sector agribusiness
investment in Rwanda and to guide public
sector measures to achieve this goal. It is
intended to be inclusive of all public and
private sector stakeholders, and dynamic as it
takes into account the evolving business
environment. This is in line with GOR goals
stipulated by Agriculture Sector Investment
Plan (ASIP-II), Strategic Plan for
Transformation of Agriculture (PSTA-III, Vision2020, Economic Development and
Figure 1. National Agribusiness Investment
Promotion Strategy
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 15
Poverty Reduction Strategy (EDPRS-II), PSTA-III, ASIP-II, and the Private Sector
Development Strategy (PSDS).
The NAIPS core objectives are:
• To promote competitive, profitable, and environmentally sustainable private
agribusiness investment and management; and
• Improve government support to new and ongoing private agribusinesses,
maximizing economic benefits for the nation and stakeholders.
During Q1, MINAGRI requested PSDAG to develop Pillar IV – Professionalizing of
Cooperatives for the NAIPS that would address strengthening and professionalizing
cooperatives to meet commercial business needs. In consultation and collaboration with
MINAGRI, the World Bank/IFC, NAEB, and other donors, PSDAG facilitated
development and inclusion of the contents of Pillar IV in the revised draft NAIPS before
sharing it with stakeholders (through the Agribusiness Cluster 2of the Agriculture Sector
Working Group [ASWG]) for feedback in December 2016.
During Q2, PSDAG shared the final draft of the NAIPS with MINAGRI. The NAIPS draft
included infographics and an additional section devoted to Pillar IV. During Q3, PSDAG
presented Pillar IV to the ASWG at the MINAGRI. The Agribusiness Cluster
recommended that Pillar IV be validated with the Cooperative Movement in Rwanda. To
that end, PSDAG organized a workshop for stakeholders to review and validate the
inclusion of Pillar IV of the NAIPS for Rwanda. The workshop brought together 19
participants drawn from local and international nongovernmental organizations (NGOs),
Rwanda Institute of Cooperatives, Entrepreneurship and Microfinance (RICEM), National
Cooperatives Confederation of Rwanda (NCCR), WFP/Farm to Market Alliance (FAMA),
NAEB, MINAGRI, Canadian Co-operative Association (CCA), and private sector
partners. The following changes were incorporated in the draft NAIPS based on
feedback from stakeholder validation workshops:
• Title of Pillar IV in NAIPS changed from “Cooperative” to “Supply Chain”—to
extend the professionalization to other viable business models in addition to
cooperatives (example: out-grower schemes) and other groups of farmers
working together but who do not necessarily want to formalize.
• Established National Guidelines for Standards instead of a grading system—
because establishing a formal system may be very complex, costly, and time
consuming.
PSDAG incorporated additional information provided by the stakeholders and presented
Pillar IV to ASWG for adoption on May 11, 2017.
During Q4, the NAIPS was finalized and validated by the ASWG. PSDAG conducted a
final edit, finalized graphics in the NAIPS, and submitted the document to the Permanent
2 The Agribusiness Cluster is a subsector working group to the Agribusiness Sector Working Group. Both are multi-stakeholder groups chaired by MINAGRI to gather feedback from other GOR agencies related to agriculture, donor organizations, and the private sector. The Agribusiness Sector Working Group was set up to conduct such activities for all things concerning agribusiness and is chaired by the Deputy CEO of NAEB and DFID.
PAGE | 16 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Secretary of MINAGRI on September 15, 2017. During FY2018, PSDAG will monitor and
report on implementation of the NAIPS.
Strategic Plan for the Transformation of Agriculture- IV (PSTA-IV)
The NAIPS is subordinate to the National Agricultural Policy and PSTA-IV, which were
being developed in FY2017. During Q3, MINAGRI asked PSDAG to participate as a
member of the Nucleus of Development Partners to assist MINAGRI in the development
and validation of PSTA-IV. PSDAG helped review
and provide feedback on timelines, outlines,
scopes of work, and drafts for the development of
PSTA-IV. During the stakeholder consultation
process, PSDAG coordinated and assisted with
the implementation of the PSTA-IV Knowledge
Seminar conducted June 7–9, 2017. The seminar
gathered experts from around the word to provide
input and feedback on the draft PSTA-IV. During
this seminar, PSDAG contributed an international
expert to present on international best practices
and a case study on the nation of Georgia.
PSDAG shared an evidence-based case study
that highlighted the challenges faced by the
Government of Georgia in implementing a
proactive, targeted investment promotion and facilitation strategy, particularly as it
related to issues within the GOR’s investment promotion and facilitation strategy and its
enabling environment. PSDAG demonstrated a detailed description of the solution
implemented by the Government of Georgia, with the support of the USAID Economic
Prosperity Initiative from 2011–2013, and an outline of lessons learned through the
process.
In addition, in partnership with PSF/RCAL and MINAGRI, PSDAG coordinated and
supported a PPD to get feedback on PSTA-III and validate assumptions to be used for
PSTA-IV from local farmers and small businesses.
During Q4, PSDAG continued to work with MINAGRI and other stakeholders to ensure
that elements of attracting private sector investment found in NAIPS are included in
PSTA-IV. So far, the following four main areas from NAIPS have been considered in the
draft PSTA-IV: 1) Information systems, 2) PPD, 3) investment promotion and aftercare,
and, 4) PPPs.
[REDACTED] , PSDAG’s STTA making a
presentation during the PSTA-IV Knowledge Seminar, June 2017 (Photo
by PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 17
ACTIVITY 2: AGRICULTURE LAND INFORMATION SYSTEM: PHASE 1 & 2
Agriculture Land Information System
1 (ALIS 1)
During FY2016, PSDAG supported
MINAGRI in developing phase 1 of the
ALIS, a web-based Investor Application
(Investor App)3 to efficiently identify
public land parcels that could then be
available to prospective investors.
During FY2017, PSDAG continued to
support MINAGRI to improve and
expand the functionality of ALIS.
During Q1, ALIS was successfully
launched on October 11, officiated by
the Minister of State in Charge of
Agriculture, Hon. Fulgence
Nsengiyumva and the United States
Ambassador to Rwanda, Erica J.
Barks-Ruggles. Subsequently, PSDAG
conducted high-level meetings with the
MINAGRI Senior Management Team,
Chief Executive Officer (CEO) of
NAEB, along with the Director General
of RAB to create awareness meetings
on the functionality of ALIS. In addition,
PSDAG conducted a refresher training
for Geographic Information System
(GIS) Specialists/Portal Power Users
(end users) for 21 technical staff drawn
from MINAGRI, RAB, Ministry of Commerce Trade and Industries (MINICOM), and
NAEB. To ensure full roll out of ALIS, MINAGRI requested additional support from
PSDAG to help expand ALIS to include privately owned land parcels, and conduct an
assessment to determine the project design and minimum equipment and staffing needs
to maintain ALIS.
During Q2, PSDAG continued to help MINAGRI expand the capability of ALIS to provide
information on an additional six million private land parcels designated for agriculture,
improve the user interface and search options based on stakeholder feedback, and
include additional MINAGRI-owned parcel descriptors regarding availability of public
land for lease. The process of improving the capability and functionality of ALIS was
conducted using a participatory approach. PSDAG conducted a workshop with relevant
staff at MINAGRI to identify limitations of the ALIS Investor App and conducted an
Investor App user survey to gather feedback from a broad range of private sector users
3 http://www.minagri.gov.rw/investorapp/
The Minister of State for Agriculture and Animal Resources, Hon. Fulgence Nsengiyumva and the
United States Ambassador to Rwanda, Erica J. Barks-Ruggles, at the launch of ALIS on October 11, 2016
(Photo by PSDAG staff)
Figure 2. Quick User Guide for ALIS Investor App
PAGE | 18 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
from outside Rwanda. However, during the process of improving the capability and
functionality of ALIS, several challenges were encountered including: 1) constraints to
upload six million private sector parcels into the Investor App which were found to be too
large and their size too small to load and display in a user-friendly manner on an online
application stored in the cloud; 2) legal implications for the public to have specific
information on private parcels; and 3) delays in integration of climate change data into
the Investor App because MINAGRI had not received essential data requested from
Meteo Rwanda.
During Q3, PSDAG, continued with support tasks aimed at addressing challenges
experienced in implementation of ALIS. PSDAG provided technical assistance migrating
the developer/test environment to a new version, and troubleshooting issues together
with the National Data Centre to ensure access to data from around the world. PSDAG
also engaged USAID’s Climate Services for Agriculture Project implemented by
International Center for Tropical Agriculture (CIAT) in order to understand how to use
ALIS to access improved weather information.
Despite improvements made on capability and functionality of ALIS, users of Investor
App still face the lack of clear guidelines, conditions, and timelines for such requests. In
addition, the profiles of public lands remain inadequate. To address these challenges,
PSDAG and MINAGRI agreed to develop the Land Use Management Guidelines (see
Activity 3 for details) and design ICT and software solutions for land profiling for
commercial investment (see ALIS 2 below). PSDAG will report on implementation of
upgraded ALIS Investor App in FY2018.
Smart Agriculture Information System (SAIS)
During Q1, PSDAG identified Short Term Technical Assistance (STTA) to help MINAGRI
staff create a budget and associated justification narrative for the maintenance of
subsequent phases of ALIS. The STTA worked with MINAGRI staff to develop the
Project Profile Document according to the Ministry of Finance and Economic Planning
(MINECOFIN) FY2017/2018 budget cycle process, which was submitted by MINAGRI to
the Public Investment Committee (PIC) for review consideration in January 2017.
During Q2, PSDAG STTA continued to support MINAGRI staff to develop the Project
Profile Document for FY2017/2018. This technical assistance entailed conducting a full
feasibility study and economic impact analysis for Smart Agriculture Information System
(SAIS), which would comprise of the ALIS and a comprehensive data system that would
harmonize other MINAGRI online data sources such as Management Information
System (MIS), e-Soko, and Rwanda Online. The SAIS would also provide additional
functionality such as interactive farmer and cow registration systems. Future versions of
ALIS under SAIS may include utilization of data from drones and available satellite
imagery. MINAGRI presented the project to the Public Investment Committee (PIC) on
January 25, 2017, and the concept was approved. Subsequently, MINAGRI requested
additional technical assistance to support development and implementation of SAIS by:
1) developing a cost-effective way to gather information on current agriculture land use
and attributes, both public and private (land profiling); 2) establishing a farmer
registration system to be used to help track transactions as part of the input subsidy
program; and 3) developing a mechanism to communicate with smallholder farmers.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 19
During Q4, with the support of PSDAG, MINAGRI finalized and approved the SAIS
implementation plan. Progress and outcomes of SAIS implementation will be reported
during FY2018.
Agriculture Land Information System 2 (ALIS 2)
During Q3, at the request of MINAGRI, PSDAG began to support the development of
ALIS 2 by providing technical assistance to MINAGRI to simplify the ALIS Investor App,
develop a more complex Management Application that could manage large quantities of
data requested (e.g. the six million parcels of private sector agriculture land), and include
improved weather information for agriculture from CIAT-sponsored data sources. This
work will continue into FY2018 and will rely on MINAGRI to hire additional support staff
for the SAIS.
During Q4, PSDAG selected a vendor to provide technical assistance to GOR (MINAGRI
and RDB) to design ICT and software solutions for use for farmer registration and land
(farm) profiling system for commercial investment. The technical assistance to MINAGRI
to adequately design systems to profile public and private agriculture lands available for
lease and to register farmers. Private land to be profiled would only include land under
the Land Consolidation Program implemented by RAB and farmers to be registered
would be based on Twigire Lists4 from MINAGRI/RAB. These ICT and software solutions
will be integrated into the existing MINAGRI’s SAIS.
ACTIVITY 3: AGRICULTURE LAND USE AND MANAGEMENT GUIDELINES
The goal of this activity is to help the GOR facilitate investor access to information
regarding available public land for sublease, and establish a clear and transparent
process for reviewing and processing those applications in a timely manner. During
FY2017, PSDAG and MINAGRI finalized the SOW for Agriculture Land Use and
Management Guidelines Consultancy. Under this consultancy, PSDAG will help
MINAGRI:
• Review the current Land Lease Client Charter, the Land Use Consolidation
Ministerial Orders, and any other processes proposed to manage agriculture
land;
• Develop the criteria, guidelines, and processes for managing public land
concessions and private land demarcated for agricultural use according to
Rwandan law;
• Establish a clear and transparent process for reviewing and processing
applications for available public land for sublease, in a timely manner; and
• Establish a clear and transparent process for both GOR and private sector land
owners regarding “optimal use”5 of land demarcated for agricultural use.
4 Twigire Lists are lists of farmers at the village level participating in government subsidized programs.
3 “Optimal Use” has not been defined in the legislation. This will need to be determined in more detail through the consultation process with MINAGRI and RDB. LAW No 43/2013 OF 16/06/2013 GOVERNING LAND IN RWANDA Article 52: Where there is tangible evidence that land meant for agriculture, livestock or forestry, has spent a period of three (3) consecutive years when it is not in use with no sound reason, the Minister in charge of land has power to
PAGE | 20 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
PSDAG is finalizing recruitment of a firm to provide technical assistance to the GOR for
development of Agriculture Land Use Management Guidelines. Progress on
implementation of this activity will be reported in FY2018.
ACTIVITY 4: INVESTMENT ROADMAP SIMPLIFICATION AND INVESTOR HANDBOOK
During FY2016, PSDAG competitively identified a local consulting and design firm to
help develop an Agriculture Investment Handbook for Rwanda. The handbook, originally
intended to simplify the 2013 Investment Roadmap, is expected to provide
comprehensive and relevant information that potential investors in the agriculture sector
will need to make informed investment decisions and to assist them with solving issues
that require GOR services. However, this activity was put on hold waiting for signing of
an MOU with RDB. Subsequently, PSDAG and RDB agreed to include development of
the Agriculture Investor Handbook in the MOU between the two parties that was signed
on August 29, 2017. Implementation of this activity will resume and progress will be
reported in FY2018.
ACTIVITY 5: AGRICULTURE INVESTMENT DATABANK
During FY2017, PSDAG planned to support the GOR (through RDB) in developing a
centralized databank that both archives and links to the most up-to-date agriculture data
frequently sought by investors. Information accessible through the databank may include
links to agricultural statistics, trade data, current policies and strategies, publicly
available feasibility and value chain studies, and the pipeline of current investment
opportunities. The databank is intended to be available to the public through the relevant
GOR websites, though institutions may reserve portions of the databank for internal use
at their discretion. During Q1, PSDAG developed a draft SOW for the development of an
Agriculture Investment Databank. However, restructuring and staff changes at RDB
delayed implementation of this activity.
During Q2 and Q3, following consultations between PSDAG and RDB, development of
the Agriculture Investment Databank was included in the MOU between the two parties
that was signed August 29, 2017. Before implementation, further discussions will be
conducted with RDB and MINAGRI to harmonize with SAIS.
ACTIVITY 6: IMPROVING BEFORE AND AFTERCARE SERVICES
The goal of this activity is to find a way to improve how the network of GOR staff working
on investment promotion coordinates and communicates through existing information
communication technology (ICT) systems used by various institutions. The existing
systems include the RDB Client Response Management (CRM) system, the Ministry of
Trade and East African Community Affairs (MINEACOM) Company Issues Tracker, and
the Integrated/Interface Business Management Information (IBMI) system to gather
private sector issues via Short Message Service (SMS) implemented by the German
Society for International Development (Deutsche Gesellschaft für Internationale
Zusammenarbeit [GIZ]).
order requisition of the land for a period of three (3) years. When the land owner does not demonstrate the will and the capability to use that land, that period may be renewable.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 21
During Q1, PSDAG developed a SOW for Investment Promotion Before and After Care
Systems Assessment Consultancy. However, during MOU negotiations between
PSDAG and RDB in Q2 and Q3, RDB reduced the number of activities under the MOU
partnership, and this activity was eliminated from the MOU.
ACTIVITY 7: IMPROVE INVESTMENT PROMOTION MARKETING MATERIALS AND ACTIVITIES
PSDAG began to support the GOR to evaluate the tools and methodologies that have
been used in the past by RDB and the MINAGRI Investment Support Unit (ISU) to
market agricultural opportunities to potential investors, make recommendations for
improvement, and subsequently build the capacity of these institutions to use the new
tools and methodologies developed.
Following the signing of an MOU with RDB in Q4, PSDAG recruited a consultant to
conduct a benchmarking of Rwanda’s investment attractiveness analysis to provide a
data-driven estimate of Rwanda’s relative investment attractiveness, as compared with
its regional competitors: Uganda, Tanzania, Burundi, Kenya, and Ethiopia in the East
African Region. This analysis is inspired by a case study on the nation of Georgia
whereby another USAID Feed the Future (FTF) project implemented a strategy that
successfully attracted $49 million in new agriculture investment.
The draft report on benchmarking of Rwanda’s investment attractiveness analysis is
under review before submission to stakeholders for validation and inputs. Findings of
this analysis will be reported in Q1 of FY2018 and will inform the process of supporting
RDB to develop promotional materials customized for the specific targeted investor
groups and based on the specific investment promotion strategies developed by the
GOR.
ACTIVITY 8: IMPROVE PPP PROCESS
The goal of this activity was to work with the RDB Strategic Investment Department
(SID) and the identified Contracting Authority for agricultural public-private partnerships
(PPPs) to develop sector-specific guidelines (including selection criteria) and templates
for concept notes, applications, and agreements. The activity was also intended to assist
with development of guidelines and best practices for conducting an accurate feasibility
study as well as guidelines and best practices for negotiating with the private sector.
As part of the GOR Capacity Building Assessment activity, the needs of the SID in these
areas were further validated (see Section 2.2.4, Activity 17). The SOW for a PPP
consultancy was developed and shared with RDB. However, during MOU negotiations
between PSDAG and RDB in Q2 and Q3, this activity was not included in the activities
under the MOU partnership.
ACTIVITY 9: IMPROVE PRIVATIZATION PROCESS
PSDAG had planned to support RDB SID to assess and make recommendations on
reforms to the 1996 Rwanda Privatization Law to allow investors who take over GOR
assets to adapt to changing circumstances and to provide assistance, capacity building,
and mentorship to RDB SID staff for restructuring select GOR-owned businesses and
assets and marketing them to the private sector.
PAGE | 22 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
However, restructuring and staff changes at RDB resulted in delay in implementation of
this activity. Subsequently, during MOU negotiations between PSDAG and RDB in Q2
and Q3, RDB reduced the number of activities under the MOU partnership, and this
activity was eliminated from the MOU.
During FY2017, the PSDAG EIAs for MINAGRI and RDB participated in privatization
efforts to identify partners to acquire GOR-owned businesses, specifically a seed
factory, a fishery, two tea factories, and the national hatchery. One of the successful
bidders for the national hatchery, Uzima Chicken Limited, facilitated by AgDevCo,
utilized the PSDAG Poultry Competitiveness Study for due diligence. This $3 M
investment, is expected to be finalized in Q1 of FY2018 (See Activity 14).
1.1.2 IMPROVING PUBLIC-PRIVATE DIALOGUE
ACTIVITY 10: PILOT OF NATIONAL AND DISTRICT-LEVEL PPD PROCESSES
PSDAG signed an MOU with PSF on
March 23, 2017, to create a formal
framework for partnership and
collaboration to pilot national and district-
level PPD processes. Under this
partnership, PSDAG and the RCAL of
PSF in collaboration with stakeholders
(RDB, MINAGRI, MINEACOM, and
Ministry of Local Government) will
facilitate development of an Agri-PPD
framework to harmonize the Agri-PPD
activities (national and district-level).
During Q3, PSF developed a draft Agri-
PPD framework to be presented to
stakeholders for validation. The framework will help harmonize the Agri-PPD activities
(national and district-level), taking into account pilot activities that have taken place so
far. However, in Q4, PSF applied for the Institutional Capacity Development Grant.
Under this grant agreement partnership (at advanced stages of negotiation) the following
Agri-PPD activities will be implemented:
• Establish the Agri-PPD framework for national and district level Agri-PPD
processes.
• Conduct local Agri-PPDs at the district level to gather, organize, and rank issues,
as well as conduct the district-level dialogues.
• Organize national Agri-PPDs on issues identified through district Agri-PPDs or
other mechanisms.
• Strengthen the capacity of lead farmers and PSF staff in advocacy by organizing
training sessions and study tours as well as exposure visits to learn best
practices in advocacy.
PSDAG Chief of Party (COP) Melanie Bittle (right) with PSF CEO Stephen Rusibiza (center), during the
MOU signing ceremony, March 23, 2017 (PSDAG Staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 23
Progress on Agri-PPDs under Institutional Capacity Development Grant to PSF will be
reported in FY2018
National Agri-PPDs
The national taskforce formed during FY2016 on PPD held a workshop in Q1 to prioritize
issues and plan the dates for the national and local PPD events for FY2017. Six priority
issues were identified (Figure 3) for the national Agri-PPD and five national dialogues
were planned to take place in FY2017. The first national Agri-PPD event concerning
access to agriculture inputs planned for November was postponed due to the
restructuring at RDB that affected the RDB representative for the RPPD Secretariat,
which is the coordinating body for all PPD and therefore is integral to any process and
event that may take place.
During Q3, PSDAG hosted another Agri-PPD national taskforce meeting to validate key
issues identified in Q1 to be addressed through national dialogues. The taskforce
reaffirmed the following priority issues: 1) agricultural insurance, 2) access to finance, 3)
packaging, 4) access to agricultural inputs, 5) tax issues and 6) climate change
adaptation. As mentioned above, national Agri-PPDs will be implemented under
PSDAG’s grant agreement partnership with PSF once the Institutional Capacity
Development Grant partnership is finalized and approved. PSF was part of the meeting
and requested to subsequently be the primary chair of future meetings and to be the
primary author of a re-vamped National and Local Agri-PPD Framework.
• The distribution systems for seeds, fertilizers and other inputs and the subsidy payment process are problematic
Access to agricultural inputs
• Need for drought-resistant crops and irrigation Infrastructure
Climate Change adaptation (policy and investment)
•The application of taxes on Agri-processors•Taxes on imports (VAT and import duties)•Tax withheld by formal businesses levied on producers not liable for tax
Tax
•The list of exemptions is not agreed•Unfair competition from imported products because the plastic ban cannot be applied to other EAC producers
Packaging
•Farmers cannot access weather insurance due to risk levels. They need government support
Agriculture Insurance
• Farmers still have major issues accessing finance. Are there opportunities for GOR to provide additional incentives/subsidies or improve on those that are already provided (such as guarantees)?
Access to Finance
Figure 3. National Agri-PPD priority issues identified by the Task Force
PAGE | 24 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
District Agri-PPDs
District-level Agri-PPD consultations were held with relevant stakeholders—district
officials, farmers, RDB, PSF, and representatives from the Linking Farmers to Markets
program (LIFAM). In November 2016, local authorities and PSF, with PSDAG’s technical
and financial support organized “PPD Meets the Community” events with a total of 148
local agribusinesses and farmers in Musanze, Rubavu, and Nyagatare Districts to gather
issues (Table 2) to be discussed under the PPP mechanism.
Table 2. Key issues identified through local PPD “Meets the Community” events
District Issues for the local Agri-PPD Issues for the national Agri-PPD
Musanze • Existence of many local milk collectors • Lack of area to install apiary (beekeepers) • Lack of proper storage technologies and facilities for
potatoes • Inputs and subsidies not timely delivered • Substandard weighing machines • High rates of diseases (especially on tomato trees &
eggplants) • Low competence in horticulture practices
• Build more Milk Collection Centers (MCCs) within the proximity of dairy farmers
• Privatization of existing MCC to dairy farmers’ cooperatives
• Fertilizers not balanced and there’s need for soil testing
• Poor quality seeds • Existence of fake pesticides
Rubavu • Low price of milk • Low access to agriculture services • Banana produce not properly collected • Cattle stolen and/or injured • Unscrupulous plantlet suppliers (lying on grafted
plants) • Low access to lowlands and marshlands poorly
used (youth) • Poor quality seeds (fruit and vegetables) and
lack of some specific seeds (garlic, tomatoes) • Poor capacity in handling and supplying flower,
vegetable and fruit (high loss rate) • Poor knowledge in fertilizer application (applying
high dose of fertilizers) • Need of affordable irrigation techniques and
equipment.
• Pesticides applied on potatoes kill bees
• Free grazing destroying environment
Nyagatare • Advocate for more animal feed shops in Nyagatare sectors (near dairy farmers)
• Water supply in the prairies • High incidence of diseases • Inadequate supply of quality drugs and
insecticides as well as timely supply of semen • Low farm gate price due to existence of few
proper storage facilities
• Increase the farm gate price by promoting more open/large market (diversify buyers)
• Attract more investors for milk processing
• Climate change
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 25
The first district-level PPD on water shortages for
both crops and livestock was conducted in
Nyagatare District in Q1. The meeting was
organized by the PSF on behalf of local PPD
champions, and PSDAG provided technical and
financial support. The meeting was attended by 25
stakeholders drawn from private and public sectors
who identified water shortage constraints in
agriculture (see Table 3). During Q3, a follow up
district Agri-PPD meeting was conducted with local
PPD champions to review progress on
implementation of resolutions made to resolve water
shortage constraints on agriculture in Nyagatare
District.
Table 3. Nyagatare District Agri-PPD meetings on water shortage constraints
Issue Action point Responsible Implementation Progress
Low access to water both for livestock and irrigation
Source lower quality dam sheets that can be used to line water collection pits. Dam sheets are already subsidized by the Districts at 50%.
District Authority
Nyagatare District subsidized 180 dam sheets to farmers (each one costs RWF 800,000; the district gave a subsidy of RWF 500,000 for each). The district constructed five valley dams and a pipeline supplying water to 100,000 farmers in Musheri Sector, and the district drilled 86 boreholes.
Farmers lack funds to construct boreholes and underground cemented pits to store water
Link farmers to finance institutions to access credits for tanks and dams
District Authority
PSF
Ongoing—sensitization of farmers to apply for credits through community-based savings and credit cooperatives (SACCOs).
Limited number of agronomists to provide agricultural extension services on irrigation, animal water needs and coping with water shortages
irrigation
More technicians to support agronomists and vets in sectors.
Built capacity of agronomists and vets.
District Authority
MINAGRI
The district appointed farmer mobilizers in sectors.
Capacity building of agronomists and vets included in the district plan for FY2017/18.
As mentioned above, additional district Agri-PPDs will be implemented under PSDAG’s
grant agreement partnership with PSF.
Collaboration with Development Partners
During Q3, PSDAG organized a PPD discussion between development partners (DPs)
with the aim of determining who is intervening where, how best to collaborate to meet
each organization’s program goals, and how best to support and work with RPPDS. The
meeting brought together GIZ, IFC, World Bank, TradeMark East Africa (TMEA), and
PSDAG. The DPs shared their current interventions in PPD in Rwanda and future plans
(see Table 4). PSDAG shared the findings on RPPD’s assessment conducted in late
PSF Chairperson addresses Agri PPD in Nyagatare District, December 13, 2016 (Photo by PSDAG staff)
PAGE | 26 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
2016 and updated the partners on the ongoing Agri-PPD activities at the local and
national levels. In addition, participants brainstormed on how to collectively support the
growth and sustainability of PPD in Rwanda and discussed possible synergies in
developing strong Agri-PPDs.
Table 4. PPD activities per development partner
Development Partner Current Interventions Related to PPD
GIZ
• Focus has shifted from District PPD to Sector PPD targeting wood, tourism, ICT and creative industries.
• Providing technical assistance in research through a Development Advisor (DA) based at PSF.
• To place more DAs in Chambers of Tourism, Women and ICT. • To support contributions to PPD processes.
IFC
• Working with RDB on a government-business feedback mechanism on 6 topics with six relevant institutions (e.g. Rwanda Revenue Authority [RRA], and immigration) for investment climate reform.
• Have a focal point at RPPD secretariat.
World Bank • Currently designing impact evaluation project on District level PPD. This is
contingent on successful implementation of PPD projects.
TMEA
• Originally involved in setting up RPPD secretariat but not directly working with it now.
• Working with PSF on 8 PPD thematic topics including taxes, standards, environment, information services and others.
• Set up PPD thematic technical committees that meet on quarterly basis. • Plan to continue to work with RPPD secretariat.
PSDAG • Working with PSF/RCAL to pilot national and district PPD processes. • Under MOU partnership, support PSF to develop a framework for Agri-PPD. • Considering a grant to the PSF for institutional strengthening activities.
PPD for PSTA-IV
During Q3, MINAGRI initiated consultations with Civil Society Organizations (CSOs),
NGOs, and DPs to gather contributions and feedback to develop the upcoming new
PSTA-IV. In May 2017, MINAGRI asked PSDAG to support gathering feedback and
contributions from the private sector actors in the agriculture sector, namely smallholder
farmers and local agribusinesses. In collaboration with the Food and Agriculture
Organization of the United Nations (FAO), PSDAG supported the RPPDS to organize a
special PPD event to inform the PSTA-IV. The PPD event was held June 2, 2017, and
brought together 60 farmer representatives and agribusinesses.
PSDAG summarized stakeholder feedback and shared it with MINAGRI to feed into the
PSTA-IV Knowledge Seminar conducted June 7–9, 2017 (see Activity 1). In respect to
PSTA-III (2013-2018), farmers and agribusinesses witnessed increased agriculture
production and appreciated:
• GOR initiatives (land consolidation use, subsidies on seeds and fertilizers, tractor
use, irrigation and management of marshlands).
• Increased access to extension services through Farmer Field Schools (FFS) and
model farmers.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 27
• GOR efforts to promote investment in the agriculture sector.
• Efforts to support youth and women entering the agriculture sector.
• Regional market integration—East African Community (EAC).
However, farmers and agribusinesses identified the following challenges, not addressed
by PSTA-III:
• Low level of consultation in preparing and implementing PSTA-III.
• PSTA-III didn’t address poor-quality seeds and fake pesticides as well as low
competence of agronomists and extension workers in practical skills (like
irrigation).
• Horticulture has not been supported at the full potential.
• The agriculture sector still faces lack of timely access to fertilizers.
• Research still at basic stage and not aligned with current demand.
• Livestock keepers think that PSTA-III was too general on their respective
subsectors (dairy farming, beekeeping, fish farming, poultry, and pig farming).
• Local agribusinesses think they are receiving less support than foreign investors.
Farmers and agribusinesses welcomed their involvement in consultations to inform
PSTA-IV and want to be more involved in its validation as well as implementation,
monitoring, and evaluation. Farmers want PSTA-IV to focus on the following areas:
• Adapting emerging agricultural research to local needs. Set up mobile
laboratories for soil testing and analysis; produce adapted varieties resistant or
tolerant against recurrent drought periods; improve access to veterinary services
by setting up mobile veterinary laboratories; and control pests and diseases on
eucalyptus, cassava, bananas, and potatoes.
• Mitigating climate change. Strengthen the irrigation program by promoting
affordable irrigation techniques to small scale farmers, improving water storage
and irrigation schemes development, and focusing on weather forecasting and
season planning.
• Increasing technical skills. Improve skills in using technologies in agronomy
and livestock production (for farmers and technical specialists); build capacity
and continue to promote entrepreneurship; and integrate practical and technical
food processing skills into formal education (i.e., processors need skilled
workers).
• Standardizing quality. Regulate and control the quality of agro inputs (seeds,
fertilizers, pesticides, and tools).
• Providing agri-focused banking and insurance. Set up an “agriculture
fund/bank” to help farmers finance investments with easy conditions; set up
agriculture insurance scheme (or program).
PAGE | 28 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
• Improving communication. Set up clear communication channels to ensure
that farmers receive timely information on markets and opportunities,
disseminate agriculture information and facilitate access by farmers (“we do not
want to hear again that available funds have not been used and we want a “one-
stop center” to access statistics”, a farmers’ representative stated).
• Accessing land. Lend public lands to farmers.
• Supporting horticulture. Provide horticulturists with training on product quality
and required certificates, greenhouses, and marketing.
• Growing livestock. Promote professionalism in livestock (dairy/beef farming,
beekeeping, fish farming, poultry, and pig farming) and set up the livestock
strategy.
• Enhancing post-harvest processing and value addition. Simplify access to
Rwanda Standards Board (RSB) certificates, address packaging challenges, and
promote local processors and agribusinesses.
• Implementing nutrition. Integrating nutrition into programming was missing
under PSTA-III; make it a specific area under PSTA-IV.
PSDAG will work with MINAGRI to organize a PPD event to present the draft of PSTA-IV
back to farmers and agribusinesses for validation. This event is expected to be
conducted in Q1 of FY20186.
Other PPDs
During Q4, with support from PSDAG, MINAGRI and AgriProfocus conducted a PPD
workshop on contract farming for 61 stakeholders. During the workshop, stakeholders
discussed the current status of contract farming in Rwanda and various experiences with
contract farming. Key outcomes of the consultative workshop included:
• Stakeholders committed to improve the environment for and operation of contract
farming;
• A common understanding of the key challenges to contract farming operations in
Rwanda was formulated;
• Roles and responsibilities between stakeholders in contract farming were
outlined; and
• The organizing committee (MINAGRI, AgriProfocus Rwanda, and PSDAG) plan
to organize a follow-up meeting with the aim of developing a roadmap for
developing a policy on contract farming.
In addition, PSDAG is in consultation with Rwanda Environment Management Authority
(REMA) to organize a PPD on the amendment of the 2008 law relating to the prohibition
of manufacturing, importation, use, and sale of polyethylene bags in Rwanda. PSDAG
6 Results gathered from the event that occurred on November 1, 2017, indicated that the majority of private sector concerns were addressed.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 29
will determine the scope of support to the consultative process once REMA has shared
the draft amendment of the 2008 law.
ACTIVITY 11: SUPPORT TO RWANDA PUBLIC-PRIVATE DIALOGUE SECRETARIAT
As discussed under Activity 17, PSDAG conducted an institutional capacity building
needs assessment of the RPPD Secretariat in order to inform PSDAG on areas of
intervention that would strengthen their capacity to coordinate PPD. However, due to the
restructuring of RDB, the need to develop an MOU with RDB and PSF, and staffing
changes at the RPPD Secretariat, implementation of this activity was delayed.
The assessment established that the RPPD Secretariat is hampered by limited
coordination between its two partners, PSF and RDB, in decision making and,
increasingly, by an apparent lack of institutional ownership. In addition, reorganizations
and staff transitions in RDB and PSF continued to disrupt operations of the secretariat.
Furthermore, RPPD has limited financial resources, and future donor support for PPD is
likely to decrease. To address these challenges and gaps, there is a need to build PPD
capacity at RDB and PSF/ Rwanda Chamber of Agriculture and Livestock (RCAL) to
help the RPPD Secretariat resume a more active role.
Following signing of the MOU with RDB and PSF, PSDAG began to design a tailor-made
capacity building program to strengthen the whole PPD framework including the RPPD
Secretariat. This capacity building program will be implemented in FY2018.
ACTIVITY 12: SUPPORT TO THE PRIVATE SECTOR FEDERATION AND PRIVATE SECTOR ASSOCIATIONS
MOU with PSF/RCAL
PSDAG and PSF signed an MOU to create a formal framework for partnership. Annex
XVII includes a copy of the MOU signed with PSF. Under this partnership, PSDAG and
PSF will collaborate on the following areas:
• Provide technical and financial assistance for the institutional assessment of
PSF’s RCAL;
• Provide technical and financial assistance for the implementation of
recommended and agreed upon interventions for PSF’s RCAL; and
• Support PSF (through an institutional capacity building grant) in the activities of
consolidating a database of member farmers and agribusinesses, establishing an
operational PPD Secretariat, and improving market access for agribusinesses;
and
• Maintain regular communication about relevant agribusiness opportunities in the
country.
PAGE | 30 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Following the signing of the
MOU with PSF in Q2,
PSDAG began working with
RCAL to implement PPD
activities (see Activities 10
and 11).
Prior to the signing of the
MOU with PSF, PSDAG
conducted a comprehensive
organizational capacity
assessment for the
Chamber of Agriculture at
PSF to identify required capacity building support to meet the needs of the private sector
through advocacy. During Q3, PSDAG resumed and finalized the institutional
assessment of the RCAL. Subsequently, PSF/RCAL applied for the institutional
development grant in response to the RFA for Institutional Strengthening for Private
Sector Advocacy in Agriculture. Under this grant request (currently at budget negotiation
stage), PSF/RCAL is requesting technical and financial support for the following
activities:
• Establish strategies to effectively and efficiently sustain the RCAL (develop the
financial sustainability strategy, establish a membership strategy, and develop
monitoring and evaluation [M&E] systems);
• Develop a comprehensive and dynamic database of members and nonmembers
stakeholders;
• Establish effective and efficient mechanisms to solve issues pertaining to
agriculture and agribusinesses; and
• Support farmers and agribusinesses to access remunerative markets.
Under the MOU and grant agreement, PSDAG will provide technical and financial
support to PSF to address identified institutional capacity gaps as well as develop and
implement an Agri-PPD framework for national and district PPDs.
RFA for Institutional Strengthening for Private Sector Advocacy in Agriculture
Grants
PSDAG published an RFA for institutional strengthening for private sector advocacy in
agriculture grants. Under this RFA, PSDAG will offer technical assistance and capacity
building aimed at strengthening the functional and operational efficiency of eligible
institutions and associations to engage with government. PSDAG interventions aimed at
promoting the private sector will help ensure input of investors into GOR policy efforts to
increase investment. These activities will complement efforts by the GOR and private
sector institutions and associations, including the RCAL of the PSF, related private
sector agriculture-focused associations, and any other private sector entity interested in
fostering effective PPD and policy advocacy activities.
Christine Murebwayire (right), Chairperson of RCAL at Institutional
Assessment Verification Workshop, April 2017 (PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 31
During Q4, PSDAG continued with the evaluation of applications for grants submitted by
private sector associations. So far, four applications are under various levels of grant
selection as presented in Table 5.
Table 5. Institutional strengthening grant applications Institution Application Status
The National Seed Association of (NSAR)
Applicant asked to provide additional information pre-award documents (Company registration certificate, list of members (seed companies), NSAR annual action plan and budget; references and accounting policy and procedure.
The Association of Cassava Processors and Exporters of Rwanda (ACPER)
Applicant reviewed and re-submitted its grant request and is under internal evaluation.
PSF/RCAL After budget negotiations, PSF/RCAL submitted a revised budget as well as the required additional documents.
The National Confederation of Cooperatives of Rwanda (NCCR).
PSDAG received request for partnership with PSDAG. Subsequently, a meeting was organized to explain to them their eligibility and modalities to access the grant. It is expected that they submit their grant request in October.
In addition, PSDAG conducted capacity building assessments of PSF/RCAL, NSAR,
RYAF, and ACPER and suggested tailor-made strategies and activities to support their
institutional development under a grant agreement partnership. The suggested
strategies and activities will guide PSDAG’s support to the grantees for FY2018.
1.1.3 ENHANCING THE BUSINESS ENABLING ENVIRONMENT
ACTIVITY 13: EVIDENCE-BASED POLICY ANALYSIS
PSDAG planned to work with the RPPD, PSF, and other relevant entities identified
through the PPD process to conduct such analysis and create position papers. Following
the signing of the MOU with PSF in Q2, this activity was combined with support to pilot
the national Agri-PPD framework, which will now take place in FY2018. (Activity 10).
ACTIVITY 14: INVESTMENT OPPORTUNITY ANALYSIS
Poultry Competitiveness Study
Following the finalization and presentation of the Poultry Competitiveness Study in Q4 of
FY2016, at the request of MINAGRI, PSDAG conducted an analysis to assess the
determinants of the high cost of domestically-produced day-old chicks (DOCs) in
Rwanda. A rapid assessment was carried out between September and October 2016,
and entailed visits to eight hatcheries in the northern and southern provinces as well as
in Kigali. Data from the DOC analysis was used to inform development of the National
Livestock Sector Development Framework (see Technical Assistance to the MINAGRI
ISU for contributions of the embedded investment advisor, Activity 18).
PAGE | 32 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
PSDAG will look for ways to work with the Rwandan National Poultry Association to
determine how information from the Poultry
Competitiveness Study can be disseminated to the
private sector for investment purposes. Already, there
are success stories of utilization of the study findings
to make investment decisions. For example,
AgDevCo7 relied on the data and information for the
study report to make an investment of [redacted] in
Uzima Chicken Limited. PSDAG will continue to
monitor and report on data and information in the
Poultry Competitiveness Study.
Export Commodity Aggregation Services Model
In 2015, PSDAG funded the Airfreight
Competitiveness Study. This study summarized the status of airfreight options from
Rwanda to international markets as well as describing the current logistics and
infrastructure environment within the country which supports airfreight services. As a
follow-on from the 2015 study, an additional study was undertaken in 2016 titled
Proposed Business Model for Airfreight Export Aggregation Services. The rationale of
this study was to design a model which would enable exporters to negotiate lower
airfreight costs through the design of an aggregation services model for goods going in
the same direction. This study described airfreight export commodity aggregation
practices in neighboring countries and recommended the design of a practical and
probable business model for export commodity aggregation services in Rwanda without
specifying how that model should work (see Table 6 and Figure 4).
Table 6. Suggested services at export aggregation center Service Name
Service Description Charge for Service (Y/N)
Institution Being Paid
Value Add to Exporter
Sorting Will provide support in sorting agricultural export to ensure they are conform to export standards
Y Aggregation center
• Assisted sorting, less rejects, improved quality control
• NAEB will provide staff to assist exporter's staff in sorting to reduce staffing cost.
• NAEB is only supporting the exporter, not entirely replacing his already trained staff
Packing Centre will pack in accordance with Airfreight export standards
Y Aggregation center
Packing assisted by NAEB who stock standard packaging material at a fee
Electronic Window
Proposed Export electronic window located on site, pending government approval.
Declarations and pre-shipment inspections can be done here. Until
Y RRA Most export procedures done in one location, saving time
4 http://www.agdevco.com/
Announcement of AgDevCo’s investment in a Rwandan poultry
company (Twitter)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 33
this center is certified by the authorities, the final inspection will be at the airport.
Storage The aggregation center will store produce. No free period - applicable rates start soon after acceptance into cold stores
Y Aggregation center
Storage for both processed freight and unprocessed freight in the same location
Negotiating rates with airlines
The aggregation center will deal with airlines so as to pursue the best deal
Y Aggregation center
Avoids negotiation, increased negotiating power
SMS/Online Aggregation service
Similar to M-Shamba, allows aggregation to complement freight loads by contacting other exporters/producers, improve coordination
N Avoids low shipment quantities, improves export coordination, can be expanded beyond airfreight to more exporters
Figure 4. Aggregation services center business model
PRODUCER
� Frame contract
�Weekly / monthly
production
�Deliver produce to
exporter a day before flight
date
�Prepare invoice
EXPORTER
� Process freight for carriage�Weekly / monthly estimates / orders�Required cargo space�Pay producer�Prepare invoice for importer
NAEB AGGREGATION SERVICES CENTRE
�Create seasonal plan�Estimate volumes�Define carrier & schedule�Consolidate request from exporters�Negotiate rates�Develop day plan�Invoice exporters- handling, cold-storage charges etc.�E-commerce ( commercial + communication infrastructure)
FREIGHT FORWARDER
�Arrange for pre-shipment inspection�Phytosanitary certificate�Customs inspection�Customs entry� Deliver freight 4 hours before departure to MAGERWA�Complete flight documentation�Freight loaded to aircraft
IMPORTER
�Issue Purchase Order to exporter�Issue seasonal/ yearly plan�Receive copy of invoice�Pay exporter�Pay clearing agent
Earnings Before Interests and Taxes (EBIT) RWF -180,957 55,040 1,385,198
Bank interests and charges RWF 9,201 70,602 124,431
PRETAX INCOME RWF -190,157 -15,561 1,260,767
The following conclusions were drawn from the findings of the profitability analysis:
• The new model of subsidized input distribution negatively impacted the profit of
agrodealers who were previously free to negotiate a gross profit more than the
new fixed gross profit rate of RWF 30 per kilogram (kg).
• Agrodealers with low sales volumes of between 0.7 t and 6.1 t generated a
negative pretax net income with the new fixed gross profit rate of RWF 30/kg. For
this category of agrodealers, selling subsidized inputs as a stand-alone business
generates losses even at higher gross profit margin rates. This category of
agrodealers represents approximately 27% of the total number of agrodealers
registered.
• Agrodealers with medium sales volumes of between 6.1 t and 31.8 t performed
better than those with lower sales volumes, but also registered on average a
negative pretax net income with the new fixed gross profit rate of RWF 30/kg.
However, an estimated 38% of agrodealers in this category sold above the
break-even value of 15 t and made a profit, though they are obviously less
profitable than with a higher negotiated gross margin.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 37
• Agrodealers with high sales volumes of between 31.8 t and 175 t are the only
category that continued generating positive pretax net income on average with
the new fixed gross profit rate of RWF 30/kg.
• In total, it is estimated that 43% of agrodealers registered earned a pretax net
income under the new distribution system. Selling subsidized inputs is only
profitable for agrodealers that sell medium to high volumes. The gross margin
per kg set by APTC would mean an unprofitable stand-alone business for
agrodealers selling low volumes or trying to enter the business for the first time.
• Profitability can be improved by a combination of increasing volumes, increasing
the gross margin offered, and managing expenses of the businesses.
1.1.4 INSTITUTIONAL STRENGTHENING AND CAPACITY BUILDING
ACTIVITY 16: SUPPORT FOR BUDGET AND IMIHIGO PLANNING CYCLE
PSDAG worked with MINAGRI to advocate for long-term GOR budget support for
PSDAG-funded activities and programs, such as future phases of ALIS. PSDAG
provided technical assistance support to MINAGRI staff in developing a budget and
associated justification narrative for the maintenance of subsequent phases of ALIS. The
STTA worked with MINAGRI staff to develop the PPD according to the MINECOFIN
FY2017/2018 budget cycle process.
PSDAG finalized the support to MINAGRI in budget planning activities for GOR
FY2017/2018. Following PSDAG’s technical assistance, SAIS and ALIS have been
included in the proposed national budget for 2017/2018 approved by the GOR cabinet
on June 6, 2017. Subsequently, the GOR parliament passed the budget law for the GOR
FY2017/18 on June 23, 2017.
ACTIVITY 17: CAPACITY BUILDING ASSESSMENT
During Q2 and Q3, PSDAG used STTAs to conduct capacity building needs
assessments for GOR institutions that have a mandate on investment promotion in
agriculture, including RDB, MINAGRI, NAEB and RPPD Secretariat. The capacity
building assessments were conducted using two dimensions: 1) a supply-side approach
that examined the roles, responsibilities, and outputs of each institution in relation to
investment promotion, facilitation, and development; and 2) a demand-side approach
based on the experiences of investors and intermediaries in dealing with the GOR
investment network. For the supply-side dimension, an investor journey model (Figure
5) was used to link institutional activity to each touch point12 with potential and actual
investors from the initial enquiry stage to the supply of key information and from
compliance/incentives negotiation to set up procedure support.
9 A “touch point” is a contact by the investor with the institutional framework along the “investor journey” (as illustrated in Figure 5). these are widely used terms in investment acquisition. Investor Journey Model created by Peter McDermott, PSDAG STTA, July 2017.
PAGE | 38 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
The draft assessment findings were presented to assessed institutions for validation
before finalization. A summary of key findings and recommendations from the
assessment of these GOR institutions is presented in Table 9.
Table 9. Capacity building assessment findings and recommendations
Key Capacity Building Assessment Findings Recommendations
Significant capacity gaps in each institution for promoting, facilitating, and developing private sector investment and PPD/policy advocacy. These are currently obstacles to Rwanda achieving its agricultural economic development goals.
Launch an initial, capacity building pilot program within 12 months, followed by a larger program based on the success of the pilot in demonstrating positive outcomes, to help obtain ongoing co-funding.
Scarce funding for capacity building. Investor-facing personnel are distributed widely across RDB, MINAGRI, and NAEB. They have limited opportunities to bid for scarce funding for capacity building in competition with the demand for training in each organization.
Develop a collaborative, coordinated funding approach across the public, private, and donor institutional network to maintain consistency of funding for capacity building projects that demonstrably deliver significant value.
Similar training needs across institutions/agencies (understanding companies’ decision-making processes and “soft skills,” e.g., empathy with investors, communicating effectively with them, team and partnering skills, and problem solving). There is also shared demand for “hard” technical skills related to privatizing State-Owned Enterprises, to PPP contracting and to joint venture set-up.
Form an Investment Development Network to deliver training to investor-facing staff across institutional boundaries and meet widely similar training needs, while avoiding a “silo” approach to capacity building.
Constantly changing corporate environments, frequent staff changes, limited induction support for new staff, and demands on staff from re-organizations make continuity for building capacity and longer-term sustainability difficult. Few capacity-building programs continue to deliver value in the longer-term due in part
Link future training needs assessment to the existing annual staff evaluation system in place across all GOR institutions, by adding a one-page training needs form to staff evaluation forms and measure capacity gains on a 1-5 scale that can be aggregated to departmental and institutional levels.
Figure 5. Investor journey model
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 39
to the absence of existing fundamental frameworks on which to base capacity building initiatives.
Limited collaboration across organizations. Research shows investors can be “lost” between various institutions; they may receive conflicting advice from different GOR sources; coordination of effort was often limited.
Creating an Investment Development Network can give investor-facing staff the opportunity to meet together regularly to network, build closer working relationships with counterparts in other institutions, and improve the quality of cross-institutional support along the investor journey. Training material produced by the PSDAG will provide an on-going cross-organizational training resource library.
Need for an effective PPD framework at the national level. The RPPDS is hampered by limited coordination between its two partners, PSF and RDB, in decision-making, and increasingly by an apparent lack of institutional ownership.
Build PPD capacity at RDB (and PSF/RCAL) to help RPPDS resume a more active role; support further development of a broad Agri-PPD framework and taskforce to work with a re-activated RPPDS if possible; or if RPPDS activity remains limited, to ensure Agri-PPD is effective at the national and local level.
Subsequently in Q4, PSDAG shared the final individual institutional capacity building
assessment reports with the assessed GOR institutions. Based on these assessment
findings, PSDAG started to develop a GOR Capacity Building Pilot Program to support
the assessed GOR institutions in addressing the identified capacity gaps and
weaknesses (see Activity 18 for details).
ACTIVITY 18: IMPLEMENT CAPACITY BUILDING PLANS
Following the Capacity Building Needs Assessment for GOR institutions conducted in
Q3, PSDAG recruited a consultant to design the GOR Institutional Capacity Building
Pilot Program. The consultant is helping PSDAG: 1) finalize prioritization modules for
training with input from each of the assessed institutions (MINAGRI, RDB, NAEB, and
RPPD Secretariat); and 2) design the proposed training pilot in collaboration with
MINAGRI, RDB, NAEB, RPPD Secretariat, and Capacity Building and Employment
Service Board (CESB).
During Q4, the consultant met key stakeholders (MINAGRI, RDB, and NAEB) to
prioritize modules for training. In addition, PSDAG met the CESB to explore
opportunities for collaboration during the implementation phase of the capacity building
pilot program and on a sustainability strategy. Moreover, PSDAG held discussions with
PSF on the capacity needs for the RPPD Secretariat in order to design a tailor-made
module to strengthen the whole PPD framework (see Activity 11 as well).
It is expected that a final report to be shared with the GOR in Q1 of FY2018 will include
the detailed content of the proposed curricula, the expected learning outcomes,
suggested trainees and trainers as well as the action plan for the Capacity Building
Program in FY2018.
Progress on capacity building of MINAGRI and RDB through PSDAG’s EIAs is
discussed below.
Technical Assistance to the MINAGRI ISU
The PSDAG EIA at MINAGRI provided technical assistance to the Investment Support
Unit, which is responsible for facilitation of private sector investments in the agriculture
PAGE | 40 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
sector. During FY2017, the EIA supported MINAGRI by assisting 49 private sector
partners (see Annex I for full list) in the following ways:
• Developed materials on investment opportunities that are shared with
prospective investors;
• Provided data/information on investment and partnership and opportunities;
• Connected investors with relevant GOR institutions for assistance in addressing
constraints such as registration (RDB), electricity and water connectivity (Ministry
of Infrastructure), land (Ministry of Natural Resources), special economic zones
and taxes (MINEACOM), exports (NAEB), seeds (RAB), tax exemption (RRA),
and funding (Rwanda Development Bank [BRD] and Business Development
Fund);
• Linked investors to other value chain actors (cooperatives and other existing
companies); and
• Supported investors in partnership negotiations (MOUs and PPPs) with
MINAGRI and other GOR institutions.
In addition, the EIA updated the MINAGRI Flagship Project Tracker for 23 projects with
an estimated value of $1 billion. The tracker is used by MINAGRI to monitor and report
to the Cabinet, IDEC, and Economic Cluster on implementation progress of flagship
projects in the agriculture sector. This tracker helps MINAGRI identify and resolve
constraints (e.g., taxes, water resources, and electrical infrastructure) hindering
implementation of these projects. See Annex II for the updated project tracker.13
Furthermore, the EIA at ISU in MINAGRI supported the process of institutionalization to
facilitate private sector investment. The ISU has been included in the PSTA-IV, and, if
approved, would be a fully staffed and funded unit under the office of the PS.
In addition to supporting the ISU to provide private sector facilitation support, PSDAG’s
EIA provided the following technical assistance to MINAGRI:
• Supported the ministry in carrying out physical verification and preliminary
analysis of youth agribusiness projects to be funded under the Agribusiness
Investment Facility Fund (AIFF)14. A total of 50 projects were preselected to
undergo the last phase of financial analysis. It is expected that one agribusiness
youth project per district will be funded.
13 The Investor Support Unit is composed of the PSDAG Embedded Investment Advisor at MINAGRI, Agriculture Investment Specialist and Agribusiness & Finance Specialist. They are responsible for updating the tracker. The PSDAG EIA reports the tracker to Hon. Minister of State who shares it with the Permanent Secretary and Hon. Minister. The IDEC meeting happens once in a quarter; the Economic Cluster meeting happens once a month; and Cabinet meeting happens once or twice a month depending on the needs.
14 GOR, through the National Employment Program (NEP) has developed AIFF tailored to support unemployed university graduates. The fund is RWF 300 million and will support selected agribusiness project, one per district (30 projects in total), for a pilot period of one year (2018).
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 41
• Participated in the development of the Livestock Sector Development Framework
which is a blueprint for the development of the Livestock Sector Strategy and
Livestock Development Investment Master Plan.
• Assisted the ministry with an impact assessment of the Rural Investment Facility
(RIF2), 2012-2017. This was a guarantee fund managed by Business
Development Fund (BDF) for agriculture projects – guaranteeing 20-25% of an
agriculture loan. The assessment aimed at establishing the contribution in
improving access to finance in rural areas, impact on livelihoods of the
beneficiaries and the community and identify bottlenecks encountered along in
implementation of the RIF. The results of the assessment will guide the decision
on the way forward for RIF 3.
• Aided the ministry in carrying out the agriculture livelihood mapping exercise and
agriculture water investment mapping under the Effective and Sustainable
Investment in Water for Poverty Reduction Project15. Results from the mapping
exercise will help MINAGRI and RAB develop irrigation investment projects.
• Participated in the development of the Rural and Agriculture Finance Service
Strategy (RAFSS 2016–2020).
• Reviewed the proposed Small-Scale Irrigation Trust Fund (SSIT Fund) designed
to facilitate farmers’ access to small-scale irrigation equipment to mitigate climate
change. MINECOFIN agreed to continue supporting the fund and subsidize 50%
of the cost; however, MINECOFIN recommended that the fund be routed through
a bank to provide farmers with easier access to the capital. MINAGRI suggested
routing the fund through the BRD because it has a banking system and already
works collaboratively with MFIs. The final decision was outstanding at the end of
Q4. PSDAG Objective 1 staff will coordinate with Objective 2 Access to Finance
staff who are working to provide technical assistance to BRD.
• Supported MOU negotiations between Rwanda Youth Agribusiness Forum
(RYAF) and African Agribusiness Incubators Network (AAIN). The five-year MOU
partnership was signed to facilitate development of incubation centers in
Rwanda. The incubation centers will train youth in how to develop business ideas
into workable business plans, and then mentor the businesses through start-up.
The program will leverage systems and co-locate with incubation centers already
developed by the Workforce Development Authority. Funding for the capacity-
building and seed funding for the start-up of the business will come from the
CESB.
• Supported MINAGRI to organize and conduct Nk'Uwikorera Campaign in the
potato seed value chain. The campaign aimed to increase awareness of the
benefits of using quality potato seeds, organizing seed multipliers, and linking
potato growers to seed multipliers. The campaign demonstrated to local farmers
techniques for positive seed selection, weeding, fertilizer application, planting,
15 Funded by FAO, IFAD and International Water Management Institute (IWMI). This project target beneficiaries are small market-oriented famers (< 2 Ha).
PAGE | 42 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
and spraying; and also met with the Mayor of Musanze to emphasize the need
for professional and commercial multipliers. MINAGRI will also arrange for 30
interns to assist the region in upgrading to commercial activities.
• Participated in the design of an internship program for young agriculture
graduates. MINAGRI in partnership with RYAF and support from CESB have
started recruitment of interns to work with cooperatives and other value chain
actors to increase agricultural productivity. So far MINAGRI has selected 370
youth to work in rice marshlands in Eastern, Western, and Southern provinces.
More interns will be selected to work in potato, maize, cassava, and livestock
value chains. PSDAG initiated discussions with MINAGRI and CESB with the aim
of supporting the internship program by designing and implementing a capacity
building package for the interns.
Technical Support to Rwanda Development Board
During FY2017, PSDAG’s EIA at RDB continued providing technical assistance to
facilitate investment promotion in the agriculture sector. Specifically, the EIA assisted
more than 58 existing and prospective investors by providing data and information on
investment incentives and opportunities in agriculture. In addition, the EIA linked
investors to other GOR institutions (RAB, MINAGRI, or local authorities), other
partnership opportunities (value chain actors such as existing companies and
cooperatives), and funding institutions (BRD). Furthermore, the EIA provided support in
partnership negotiations for partners that required MOUs with GOR institutions or joint
ventures with other companies. Some successful investments that were registered and
began to operationalize in FY2017 that were facilitated by the EIA are as follows:
• Uzima Chicken, Ltd., estimated at up to [REDACTED] investment;
• Rugabano Tea, Ltd. estimated at up to [REDACTED] investment; and
• Sunfresh, Ltd, estimated at up to [REDACTED] investment.
See Annex III for a full list of private sector facilitation support provided by PSDAG EIA
at RDB.
PSDAG’s EIA at RDB also provided technical assistance to RDB as follows:
• Developed business case in agriculture sector “info-packs” that are shared with
investors. The info-packs contain value chain information and investment
opportunities;
• Represented RDB before organizing committees including: 1) The National
Organizing Committee in the preparation of East African Manufacturing Business
Summit conducted in Rwanda May 23–26, 2017; 2) The National Organizing
Committee for Forestry and Land Scape Restoration Forum (FLIF) which took
place May 16–17, 2017; and 3) The Steering Committee for Gabiro Commercial
Farm project16; and
16 This is a proposed joint venture between GOR and a private sector irrigation firm to develop 16,000 ha for commercial horticulture for export, in three phases.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 43
• Represented RDB in a review of the Joint Imihigo for the agriculture sector for
GOR Fiscal Year 2017–2018.
1.2 OBJECTIVE 2: FACILITATE INCREASED PRIVATE SECTOR INVESTMENT TO UPGRADE VALUE CHAINS
PSDAG continued with implementation of project activities under various grant
mechanisms including 28 signed Agri-SME grants under the VCCF (16 signed in
FY2017); 13 grants under Farmbook and Potato Collection Center (PCC) Upgrade
Grants, and 33 FY2017 Maize Grants. Progress and implementation outcomes of
ongoing grants by value chain are presented in Table 10.
Table 10: Summary of FY2017 results from PSDAG grant activities by value chain
Key Indicators Beans Irish
Potatoes Maize
Horticulture
Other Value
Chains Dairy Total
Value of gross farm incomes of assisted farmers ($)
PAGE | 44 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Joint - 1,506 35,714 59,524 1,400,952
-
1,497,697
Number of jobs created - 36 5 24 29 7 101
Males - 18 3 15 17 5 58
Females - 18 2 9 12 2 43
1.2.1 SELECTION AND APPROVAL OF PSDAG PRIVATE PARTNERS
PSDAG has continued to build strong partnerships with the private sector under the
VCCF. The selection and approval process is documented in this section and progress
of signed partnerships is documented by objective and activity (see Table 11).
VCCF PARTNERSHIPS – 2015 RFA
All grants anticipated to be awarded under this RFA are now signed and under
implementation. PSDAG decided to terminate one grant to Agasaro Organic Ltd
because the company was not able to meet its contribution requirements. Kigali Farms,
Shekina, and Sarura completed all funded activities and remain strong partners to the
project as PSDAG provides technical assistance to enable them to reach new markets
and access private financing.
A list of PSDAG’s partnerships under 2015 RFAs is included in Annex IV.
VALUE CHAIN COMPETITIVENESS FUND (VCCF) PARTNERSHIPS – 2016 ANNUAL PROGRAM STATEMENT (APS)
Under this selection mechanism, PSDAG signed 12 VCCF partnerships with agro-SMEs,
with four under final USAID approval. An additional 12 partners are at final stages and
expected to be submitted in Q1 of Year 4. PSDAG completed due diligence on, but
dropped or put on hold 14 applications. A complete list of grantees is provided under
Annex V.
Table 11: Summary of partner competition, selection process, grant funding, and partner leverage
Concept Notes / Applications
FY2015 RFA FY2016 APS
As of Dec. 31, 2016
Full Applications Concept Notes Full Applications
Received 98 • $48.3 million requested
• $59.6 million in proposed leverage
171 • $23 million requested
• $34 million in proposed leverage
63 • $9 million • $21.4 million in
proposed leverage
Accepted 20 • $2.6 million requested
• $5.6 million in proposed leverage
42 • $10.4 million requested
• $19 million in proposed leverage
42 • $5.6 million requested
• $15 million in proposed leverage
Requested to Resubmit
0 N/A 9 • $1 million requested
• $1.6 million in proposed leverage
8 • $1.3 million requested
• $2.2 million in proposed leverage
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 45
Concept Notes / Applications
FY2015 RFA FY2016 APS
Under Negotiation 0 N/A 16 • $1.2 million in grant funding
• $4.6 million in leverage
Awarded 14 • $1.8 million in grant funding
• $3.7 million in leverage
N/A 12 • $1.2 million in grant funding
• $3.5 million in leverage
Total Anticipated Awarded
14 • $1.7 million in grant funding
• $3.3 million in leverage
N/A 28 • $2.3 million in grant funding
• $8.5 million in leverage
Note that leverage includes both capital and noncapital (e.g. working capital and investments in inputs) private sector investments directly relevant to the grant funded; value under negotiation is based on current negotiations not application amount and excludes applications that were dropped after due diligence. It is not anticipated that all grants under due diligence and negotiation will be awarded (i.e., the target number of grants awarded will be less than the sum of grants awarded and those under negotiation).
VCCF Partnerships – 2017 APS
In FY2017, PSDAG released four RFAs; progress on implementation includes:
• Cooperative Professionalization RFA: in collaboration with WFP, PSDAG
provided cost-share grants to 33 maize cooperatives for Season A post-harvest
handling. PSDAG selected 60 cooperatives identified and assessed in Year 3;
those cooperatives will be eligible to apply for grants in Year 4, contingent on
completion of technical assistance program.
• Asset Financing RFA: PSDAG received 16 applications and evaluated six of
which three were accepted for the next step of due diligence and three were
rejected. The remaining applications will be evaluated in Q1 of FY2018.
• Institutional Capacity Strengthening RFA: PSDAG received four applications
under this RFA. Two organizations were approved for the next step of due
diligence process: Private Sector Federation/Rwanda Chamber of Agriculture
and Livestock and National Seed Association of Rwanda (NSAR). One
organization was asked to resubmit and one was not selected.
• Women, Youth and PWD in Entrepreneurship and Leadership Program
RFA: PSDAG received 29 applications under this RFA. Five applications were
evaluated and three of them were selected for the next level of due diligence.
PSDAG rejected one applicant and requested a meeting with the other one to
understand more about their business before making the final decision. The
remaining applications will be evaluated in Q1 of FY2018.
PSDAG Build the Capacity of Private Sector Agri-SMEs to promote Gender Equity and Social Inclusion
PSDAG provided support to 11 private partners on Gender and Social Inclusion (GSI) so that partners are able to identify opportunities for proactively engaging women, youth and people with disabilities (PWDs) within their
PAGE | 46 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
business models and put in place policies to reduce unintended negative consequences resulting from their businesses. For example, companies such Masaka Creamery have hired individual with disabilities, and companies such as Tuzamurane have improved leadership opportunities for women and hired a female staff as Head of Production. All partners agreed to review their policies and practices to ensure they are inclusive and PSDAG will continue to support these partners in Year 4 to monitor progress against the results. The curriculum was adapted to cooperatives’ specific needs under the Cooperative Professionalization Activity (Activity 21). Training under the CPP, including GSI training, started in Q4 2017 for the first cohort of 60 cooperatives.
1.2.2 OBJECTIVE 2.1.1: IMPROVING ACCESS TO RAW MATERIALS
ACTIVITY 19: STRENGTHEN VERTICAL LINKAGES THROUGH IMPROVED AGGREGATION, POST-HARVEST HANDLING, AND QUALITY MANAGEMENT SYSTEMS
PSDAG partnerships from the 2015 RFA and 2016 APS have made progress toward
their investment objectives in FY2017, strengthening vertical relationships with buyers
and quality management at aggregation. In addition to facilitating investment by private
partners in technology and their supply chains, PSDAG has supported horizontal
linkages between farmers, which are reported under Activity 21 Cooperative
Professionalization.
Under Activity 19, PSDAG implemented a successful strategy for building vertical
linkages driven by private sector partners and market opportunities. Leveraging its
VCCF, PSDAG was able to identify those buyers and aggregators that have a strong
interest in investing in the farmer supply chain, in particular to improve quality,
aggregation, and reliability. PSDAG also supported these businesses to improve their
contract farming strategies by providing two workshops and one-on-one coaching.
In addition, PSDAG has been supporting cooperatives to invest in post-harvest handling
technology that has improved their ability to manage quality after harvest, which is
particularly important in Rwanda where the humidity is high and rains are possible during
harvest.
Many PSDAG partners support multiple activities; partners highlighted under Activity 19
include:
• Sarura—maize and bean trader in domestic and regional markets
• Producing and Export Bird’s Eye Chili (PEBEC)—dried chili buyer and exporter
• Enterprise Nkubiri & Sons (ENAS)—maize and bean trader in domestic and
regional markets
• Les Minoteries Industrielles Import-Export (MINIMEX)—high value maize
processor
• Agrilift—crop monitoring solutions
• E&Foods Direct—wholesale horticulture, commercial anchor-tenant model
• WFP—partnership with maize cooperatives on post-harvest handling solutions
Sarura Commodities – Supporting Maize and Beans Farmers through
Establishment of Aggregation Centers
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 47
PSDAG and Sarura Commodities partnered to support investment in upgrading five
collection centers located in [REDACTED], [REDACTED], [REDACTED], and
[REDACTED] Districts and training farmers on production and supply of high value
maize and beans to these centers. Specifically, USAID grant funding helped Sarura
invest in [REDACTED] aluminum storage structures, [REDACTED] solar bubble dryers,
[REDACTED] blue boxes, [REDACTED] moisture meters, [REDACTED] weight scales,
[REDACTED] sheeting for grain handling, [REDACTED] sets of branded bags, and
[REDACTED] sets of gloves and masks.
The one-year (January 2016 to January 2017) grant funding period for Sarura ended in
Q2. With the support of PSDAG, Sarura acquired [REDACTED] Wiikhall storage facilities
([REDACTED] each) and equipped existing warehouses (in [REDACTED]—
[REDACTED] t, [REDACTED]—[REDACTED] t, and [REDACTED]—[REDACTED] t).
Consequently, Sarura’s storage capacity at the collection and aggregation centers
increased from [REDACTED] to [REDACTED]. With this increased storage capacity,
Sarura bought [REDACTED] of maize, and [REDACTED] of beans from 12 cooperatives
(10 maize and two beans), earning [REDACTED] and [REDACTED] in income for
[REDACTED] and [REDACTED] maize and beans farmers, respectively. In addition,
Sarura mobilized over [REDACTED] in loans through an inventory credit facility to
purchase maize and beans from [REDACTED] farmers ([REDACTED] women).
Progress on implementation of Sarura grant activity during FY2017:
• The company signed a new framework contract with [REDACTED] to supply
[REDACTED] of maize per season, including the possibility of expanding into the
soybean trade.
• The company acquired a loan of [REDACTED] from [REDACTED] for working
capital to buy beans from partner cooperatives.
• Sarura purchased [REDACTED] of maize from [REDACTED] partner
cooperatives and [REDACTED] of beans from [REDACTED] partner
cooperatives.
• Sarura engaged with [REDACTED] and [REDACTED] for low interest inventory
credit lines of [REDACTED] million and [REDACTED] respectively. Negotiations
are still underway.
• PSDAG hired a service provider to help Sarura develop a growth strategy,
conduct regional market analysis, prepare investor documents, and link it to
investors.
• Key outcomes attributed to partnership with PSDAG:
– [REDACTED] in incomes for [REDACTED] smallholder maize and beans
farmers ([REDACTED] women).
– [REDACTED] in domestic sales of value-added maize and beans.
– [REDACTED] in value of loans accessed by Sarura to purchase maize from
smallholder farmers.
PAGE | 48 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
PSDAG Private Partners Invest in Women throughout the Supply Chain
Under the grant agreement partnerships, PSDAG continued to engage private partners with strong social inclusion targets who are investing in their supply chain and increasing opportunities for female farmers. For example:
• Sarura engages 2 women as full-time staff and has facilitated [REDACTED] in loans from Duterimbere for women. Inventory credit has benefited [REDACTED] women by enabling them to get a higher price for their maize and still get paid early in the harvesting season.
• PEBEC has enabled [REDACTED] women to access new markets for chili and employs [REDACTED] women at its [REDACTED] collection centers.
• ENAS is working with [REDACTED] cooperatives at 10 collection centers in Kirehe; at least one cooperative has female leadership and it is anticipated that ENAS’s investment in the silo will support maize and beans marketing for [REDACTED] women.
• MINIMEX’s investment in post-harvest handling has enabled [REDACTED] women to adopt improved post-harvest handling technologies (dryers, shellers, weighing scales).
• E&Foods investments in greenhouses for horticulture and training for out-growers has facilitated [REDACTED] women to adopt improved irrigation technologies, marking high value horticulture to E&Foods who sells wholesale to hotels and retail shops in Kigali.
• In total, 42% of PSDAG partners’ suppliers were women and the increased value of sales for women was $2,359,881 in FY2017. The private sector’s investments in the supply chain have facilitated training in agricultural sector productivity or food security for 3,039 women and supported 20,918 women in applying improved agricultural technologies or management practices.
• PSDAG partners work with 194 cooperatives of which 30% have female leadership (i.e. Cooperative Representative is a woman); 31,478 women are members of these cooperatives, representing 44% of total cooperatives membership.
Producing and Aggregating Export-quality Birds-Eye Chili (PEBEC)
PSDAG’s partnership with PEBEC
supports co-investment in aggregation
centers for smallholder farmers
supplying Birds-eye chili peppers to
PEBEC for drying and export to
Europe. Under this partnership,
PEBEC is co-investing to upgrade its
rural drying, sorting, aggregation, and
storage points along the value chain to
meet export market standards and
volumes, targeted to increase from
[REDACTED] t to [REDACTED] t per
year.
Progress on implementation of PEBEC
grant activity during FY2017:
• Nurseries were prepared and aggregation centers equipped (with sorting tables,
cocoons, moisture meters, weighing scales) in all collection sites in [REDACTED]
districts. Subsequently, seedlings were distributed to supplier farmers for planting
in Q1.
• PEBEC completed the construction of dryers in [REDACTED] Districts. The
construction of dryers in [REDACTED] is ongoing.
New sorting and drying table at [REDACTED] collection center, November 24, 2016 (PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 49
• The company continued to buy fresh chili from farmers and exported
[REDACTED] t of dried chili to the [REDACTED].
• However, the company experienced delays in accessing a loan to finance its
cost-share contribution for the remaining equipment for collection centers in
[REDACTED]District.
• Key outcomes from implementation of grant activity:
– [REDACTED] in farm incomes for [REDACTED] chili farmers ([REDACTED]
women).
– [REDACTED] investment in capital assets.
– [REDACTED] in export sales to markets outside the East African Region.
– [REDACTED] in loans to invest in chili production and value addition
processes.
– [REDACTED] ([REDACTED] women) TOTs on Good Agriculture Practices
(GAP) including quality seed management.
Enterprise Nkubiri & Sons (ENAS) – Kirehe Grain Storage Facility for Maize and
Beans
PSDAG has co-invested with ENAS in a silo that will store and dry [REDACTED] t of
maize and beans in [REDACTED] District, helping the company significantly expand
operations and services to clients in the maize value chain. With PSDAG support, ENAS
has acquired two silos with built-in
dryers. As part of ENAS’s contribution,
the company has provided training to
farmers in post-harvest handling best
practices and has set up [REDACTED]
collection centers in [REDACTED]
District.
Progress on implementation of ENAS
grant activity during FY2017:
• The silo equipment (bought with
co-funding from USAID grant)
with all parts including a modern
dryer has been imported from Brazil and stored at the ENAS warehouse in
[REDACTED] District. Installation of silo equipment is expected to begin after
completion of silo foundations.
• ENAS continued with construction of the foundations where the new silos will be
installed at its warehouse in [REDACTED] District. Construction is anticipated to
be completed before the end of the 2017 calendar year, with installation of silos
expected to be completed by February 2018 in time to store Season 2017-A
maize.
• Key results from implementation of grant activity:
Construction activities of the silo installation site in [REDACTED] (Photo by PSDAG staff)
PAGE | 50 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
– [REDACTED] in income for [REDACTED] smallholder bean farmers
([REDACTED] women).
– [REDACTED] of new capital investments (construction of foundation for
silos).
– [REDACTED] in export sales ([REDACTED] in beans and [REDACTED] in
maize) to markets outside the East African Region.
PSDAG has partnered with WFP and RDO to support the Patient Procurement Platform
which is now called Farm to Market Alliance
(FAMA). This is an initiative to support consistent
market access for smallholder farmers. The goal
of FAMA is to establish pro-smallholder
agricultural value chains in partnership with
public and private off-takers and input providers
and other commercial actors. Rwanda is one of
the first pilot countries for this program, along
with Tanzania and Zambia. Under this
partnership, PSDAG signed grant agreements
with 33 cooperatives through co-investment in
post-harvest handling equipment such as
shellers, weighing scales, pallets, and packaging
bags.
Progress on implementation of FY2017 Cooperative Professionalization grants to maize
cooperatives:
• Six cooperatives received post-harvest handling equipment including moisture
meters, two bag-sewing machines, grain silos, packaging bags, and weighing
scales.
• All 33 cooperatives received all the equipment under the 2017 grants to maize
cooperatives.
• Key outcomes from implementation of this grant activity:
– [REDACTED] in value of incomes for 9,786 (4,690 women) smallholder
maize farmers.
– [REDACTED] in domestic sales of value added maize.
– 33 cooperatives adopted improved post-harvest handling technologies and
accessed premium maize markets (WFP and RGCC).
Branding of sheller bought with USAID funding at [REDACTED] Cooperative in [REDACTED] District (Photo by PSDAG
staff)
PAGE | 56 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
PSDAG Agri-SME Partners Enabled Women to Earn Higher Incomes by Selling Improved Quality Goods at Higher Prices through the Market System
By leveraging the VCCF, PSDAG worked with private partners to ensure that new market linkages were created for smallholder farmers who can get higher prices for quality produce.
• Shekina almost exclusively sources fresh cassava leaves from women producers; a value of [REDACTED] was purchased in FY2017 from [REDACTED] women (92% of Shekina’s suppliers); it also increased the price of cassava from [REDACTED] /kg to [REDACTED] /kg as an incentive to encourage production and supply of quality fresh cassava leaves.
• Tuzamurane purchased [REDACTED] worth of fresh organic pineapples from [REDACTED] women producers in their cooperative; Tuzamurane members voted to use profits from higher exports to cover the cost of health insurance of all members and their families. Not only do women earn more income through Tuzamuane, but they are able to provide other valuable services to them such as health care, benefitting the whole community.
• MINIMEX bought [REDACTED] worth of maize from [REDACTED] women farmers (representing 36% of total group of beneficiaries) in Year 3.
• ENAS purchased [REDACTED] worth of beans from [REDACTED] women farmers (59% of total group of targeted farmers).
• DEYI is a new PSDAG partner and women are playing an important role in their business model; [REDACTED] out of [REDACTED] cooperatives have all women. Along with financial education, DEYI is building their capacity to sell substrate tubes and fresh mushrooms; DEYI anticipates increased income of [REDACTED], of which [REDACTED] will be for women (based on the assumption that the beneficiary group is 46% women).
In total, PSDAG partners’ investments generated at least $2.3 million in gross farm income (out of $5.48 million) for 23,659 women smallholder farmers in FY2017.
ACTIVITY 20: SUPPORT EXPANSION OF PROCESSING AND VALUE ADDITION
PSDAG has leverage the VCCF to identify and fund private sector processors across
multiple value chains. Most of these are small to medium enterprises with limited
collateral to access financing. The PSDAG support enabled companies to access
financing for at least 50–70% of the cost of their assets. Most processors have also been
investing in the supply chain, strengthening vertical linkages with producers (Activity 19).
PSDAG began in Year 3 to support these processing companies with BDS that will
enable them to target private investors to reach scale. When the PSDAG partnership
began, many of these companies were not yet attractive to investors and funds such as
AgDevCo. The goal of the support to these partners under the VCCF in Year 3, is to
enable them to demonstrate profitability, market demand, and sound financial
management, which will result in accessing private funding to reach scale.
Many PSDAG partners support multiple activities; the partners highlighted under Activity
20 include:
• Kigali Farms mushroom processing for substrate and high value exports,
• DEYI oyster mushroom processing for substrate and the Kigali market,
• Shekina cassava leaf processed specialty food products for export,
• Tuzamurane dried pineapple processing for export,
• Hollanda Fair Foods potato chip processing for domestic and regional markets,
• FarmFresh precooked mixed and iron-fortified beans for domestic and regional
markets,
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 57
• Norlega Macademia nut processors for domestic and regional markets,
• Masaka Creamery (yogurt and cheese) processor for domestic and regional
markets,
• Green Harvest “Sabana” processed chili sauces for domestic and regional
markets, and
• Ndiyo potato chip processing for domestic and regional markets.
Kigali Farms – Mushroom High Value Vegetable Crop for Export and Nutrition,
Button Mushroom Production
In FY2016, PSDAG partnered with Kigali Farms with the aim of building a commercially
successful mushroom substrate and growing plant in [REDACTED] District,
[REDACTED] Province. This project
activity facilitated engagement with
the local community, providing two
income-generating opportunities: 1)
local wheat and maize farmers supply
materials—straw, stover (chopped
corn stalks), and manure; and 2)
Kigali Farms uses the materials to
produce high-quality mushroom
substrate (see Figure 8).
As of the end of a one-year grant
agreement period (January 2016–
January 2017) with Kigali Farms in
Q2, with PSDAG support, the
company had bought and installed
substrate production facilities, constructed mushroom growing houses, and installed
mushroom production equipment—baler, tractor, generator, cold room, and precooler.
Progress on implementation of Kigali Farms grant activity during FY2017 included:
Button mushrooms produced by Kigali Farms packed in crates ready for distribution to retail stores, November 9, 2016 (Photo by PSDAG staff)
PAGE | 58 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
• Kigali Farms officially
launched its mushroom
production plant in
[REDACTED] in
November 2016.
Afterwards, the company
continued to produce
button mushrooms and
supplied them to retail
stores and hotels in Kigali
and Kenya.
• The company obtained
Hazard Analysis Critical
Control Point (HACCP)
certification for its
[REDACTED] mushroom
growing site. Kigali Farms
also received the S-Mark from RSB after quality testing its key raw materials for
compost production—spent grain, chicken manure, and peat.
• Kigali Farms trained [REDACTED] FFS facilitators who trained [REDACTED]
groups ([REDACTED] farmers [[REDACTED] women]) in growing oyster
mushrooms. Kigali Farms selected [REDACTED] farmer groups for buy-back
contracts of oyster mushrooms they produced.
• Under BDS support, PSDAG contracted consultancy services to conduct a
comprehensive assessment of smallholders’ demand for mushroom substrate
and interest in investment in oyster mushroom cultivation in Northern Province.
Findings of this assessment
will inform Kigali Farms
future engagement
strategies with farmers to
whom it markets mushroom
substrate. It will also help
validate some of the
nutritional objectives of
having smallholder farmers
produce mushrooms in
order to increase local
consumption and improve
nutrition, compared to the
commercial motivations of
farmers producing
mushrooms as a cash crop.
CEO Kigali Farms explaining to guests on substrate production during Mushrooms production plant launch
event at Musanze, November 9, 2016 (Photo by PSDAG staff)
Figure 7. Kigali Farms Button mushroom
production
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 59
• Key outcomes from implementation of grant activity:
– [REDACTED] of income for [REDACTED] farmers/collectors ([REDACTED]
women) through the purchase of wheat straw used as raw material for
production of button mushrooms.
– [REDACTED] in domestic sales of mushrooms and tubes.
– [REDACTED] in mushroom export sales to regional East African markets.
– [REDACTED] in new capital investments to upgrade production and
processing facilities.
DEYI – Improved Mushroom Production and Processing Technologies
In Q4, PSDAG signed a partnership with DEYI Ltd, a company involved in mushroom
production. DEYI will invest to increase substrate production volumes, cold storage for
fresh mushrooms, and processing equipment for mushroom flour. These investments
will increase income for oyster mushroom producers by increasing their capacity to
supply mushrooms to DEYI through higher yields, and increase the market for
mushrooms that DEYI can buy and process from farmers. This will be done through
provision of technical assistance to agro-SMEs (tubes producers) who aim to produce
[REDACTED] tubes from [REDACTED] t of substrate annually. The project will also
Increased Investment by Private Sector Agribusiness Sustains and Increases Job Opportunities for Women, Youth and PWDs
PSDAG’s investment support to private sector partners enabled them to create new jobs for women, youth and PWDs.
• Agroplast initially hired [REDACTED] staff including [REDACTED] women and [REDACTED] youth. Under partnership with PSDAG, they hired [REDACTED] new staff including [REDACTED] women, [REDACTED] youth and [REDACTED] PWD. In addition, they buy plastic waste from youth and women groups for processing.
• Masaka Creamery is an example to follow for businesses looking to be more inclusive for people living with disabilities. It is the company’s policy to intentionally hire deaf employees and demonstrate that they can be just as productive as anyone else. Masaka Creamery’s team was initially composed of [REDACTED] staff ([REDACTED] women, [REDACTED] youth and [REDACTED] PWD) and in FY2017, the company provided job opportunities to [REDACTED] new PWD, alongside [REDACTED] new youth and [REDACTED] women employees.
• nFrnds hired [REDACTED] new staff including [REDACTED] youth and [REDACTED] women to support the [REDACTED] staff that nFrnds had already employed; under the Youth Fellowship program, nFrnds has also recruited and trained its first cohort of [REDACTED] young women entrepreneurs who will support them in reaching out to farmers and beneficiaries with their ICT services. This program offers long-term job opportunities for young women whose capacities in marketing, entrepreneurship and ICT are built throughout project implementation.
• E&Foods Direct initially had a team of [REDACTED] employees, with [REDACTED] women. In partnership with PSDAG, it hired [REDACTED] new staff including [REDACTED] women, [REDACTED] youth and [REDACTED] PWD. The company will build long-term capacity of its team in accounting and book keeping, financial reporting, budgeting and sales forecast.
PAGE | 60 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
strengthen
the capacity of fresh mushroom producers and link them to the agro-SMEs in order to produce
[REDACTED] t of fresh mushrooms. Up to [REDACTED] farmers will benefit from this activity.
[REDACTED] private companies, [REDACTED] cooperatives, and [REDACTED] vocational
training centers will be linked to DEYI. DEYI will purchase fresh oyster mushrooms, process
[REDACTED] % into flour, and sell [REDACTED] % as fresh oyster mushroom to identified
markets including schools, supermarkets, and hotels.
Progress on implementation of DEYI grant activity includes:
• PSDAG supported DEYI to access working capital of [REDACTED] to purchase
raw materials.
• DEYI purchased [REDACTED] kg of fresh oyster mushrooms from [REDACTED]
farmers ([REDACTED] women).
• The company trained [REDACTED] farmers (all women) on mushroom
production and marketing.
Key outcomes from grant partnership with DEYI:
• [REDACTED] in gross farmer incomes for [REDACTED] suppliers
([REDACTED] women) of fresh oyster mushroom.
• [REDACTED] in domestic sales of fresh Oyster mushroom.
• [REDACTED] in value of new capital investments to upgrade mushroom
production and processing technologies.
• $[REDACTED] in value of loans for working capital.
• [REDACTED] new full-time employees ([REDACTED] women and [REDACTED]
youth).
Shekina Enterprises – Strengthening Cassava Leaf Value Chain in Rulindo
District
PSDAG’s partnership with Shekina Enterprises aims to increase the income of women
farmers in Rulindo District by strengthening the cassava leaf value chain, and entails
training the members of [REDACTED] women’s groups, purchasing [REDACTED] t of
cassava leaves from these groups, processing and exporting cassava leaf products to
Europe, the United States, Canada, and Japan, and increasing buying and processing
capacity of dried cassava leaves from [REDACTED] t to [REDACTED] t annually through
co-investment in drying, blanching, and packaging equipment.
Progress on implementation of this grant activity during FY2017 included:
• PEBEC has [REDACTED] permanent employees, [REDACTED] are women and [REDACTED] youth. They also temporarily hire [REDACTED] casual workers, all women. PEBEC’s recruitment model is gender neutral, and empower women by offering jobs at aggregation center sorting chili.
In total, PSDAG’s private partners (including PCCs) have 623 full-time staff (29% women) and 10 new long-term jobs were created in FY2017 as a direct result of PSDAG’s support. Out of these 101 new positions, 42% are occupied by women;42% by youth and 7% by PWDs (both men and women).
Among 25 Agri-SME partners, nine are owned by both women and men (36% mixed ownership).
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 61
• Shekina used a PSDAG grant to buy new processing equipment including an
electric drying machine to manage growing demand for the product, a blanching
machine to replace outdated and inefficient existing equipment, and six electric
sealing machines to increase packaging capacity.
• The company raised prices for
purchase of fresh cassava leaves from
[REDACTED] /kg to [REDACTED] /kg
as an incentive to continue
encouraging production and supply of
fresh cassava leaves.
• An instant cassava leaf product
produced with the newly acquired
machines was certified by RSB.
• [REDACTED] women farmers were
trained on cooperative management,
harvest and post-harvest handling in
the five collection centers in
[REDACTED].
• Shekina began the registration process with the RCA for [REDACTED] cassava
collection centers and initiated a savings program for the women’s groups that
supply fresh cassava leaves.
• The company continued to buy fresh
cassava leaves from women producers
and process dried cassava leaves for
domestic and export markets and
distributed [REDACTED] cuttings to
farmers in the Base and Bushoki collection
centers in accordance with its cassava
production plan.
• Key outcomes from the grant partnership
with Shekina include:
– [REDACTED] in gross farmer incomes
for [REDACTED] suppliers of fresh cassava leaves ([REDACTED] women).
– [REDACTED] in domestic sales of instant dried cassava leaves and dried
cassava leaf products.
– [REDACTED] in exports of processed cassava leaf products to the East
African Region and US markets.
– [REDACTED] female youth (ages 18–20) jobs created at the sorting facility.
Tuzamurane Cooperative: Dried Organic Pineapple Production
Women sorting fresh cassava leaves before processing at Shekina processing facility, [REDACTED] , February
16, 2017 (Photo by PSDAG staff)
[REDACTED] , Managing Director of Shekina at the cassava leaves processing facility equipped with
USAID funding (Photo by Franz Benjamin, PSDAG)
PAGE | 62 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
PSDAG launched its partnership with Tuzamurane Cooperative, which is co-investing
with PSDAG in value-added processing of organic pineapples. Under this partnership,
Tuzamurane will be able to increase land under organic pineapple production from
[REDACTED] ha to [REDACTED] ha; improve quality management of fresh and dried
pineapples; accelerate processing of dried pineapple in the factory using specialized
machines for peeling, slicing, scaling, and lot numbering; increase sales of dried organic
pineapples from [REDACTED] t in 2015 to [REDACTED] t by September 2017; and
strengthen linkages between value chain stakeholders.
Progress on implementation of grant
partnership with Tuzamurane during FY2017:
• Tuzamurane purchased pineapple
processing equipment including two
sealing machines, four slicers, a juice
extractor, and a dryer machine.
• The cooperative bought over
[REDACTED] t of fresh pineapples from
farmers for value-added processing. A
total of [REDACTED] farmers
([REDACTED] women) were reached in
[REDACTED] collection centers in
[REDACTED] District.
• Tuzamurane obtained an organic certificate after an international audit of
pineapple planting and use of manure practices. [REDACTED] ha of land were
added to organic production and [REDACTED] ha was renewed for production of
organic pineapples.
• A buyer from Europe increased demand
for dried pineapple products from
[REDACTED] t per month to
[REDACTED] t per month after visiting
the upgraded processing facilities.
• Key outcomes from the grant activities:
– [REDACTED] in value of gross
farmer incomes for [REDACTED]
([REDACTED] women) suppliers of
fresh pineapples.
– [REDACTED] in value of new capital
investments to upgrade pineapple processing line.
– [REDACTED] in value of exports of dried pineapples to Europe.
– [REDACTED] in value of loans for working capital.
– [REDACTED] ha under improved organic production practices.
[REDACTED] , pineapple farmer and a supply of Tuzamurane cooperative,
[REDACTED] District (Photo by Wil Boaz, RTI International)
An employee of Tuzamurane Cooperative packages dried pineapple for export,
[REDACTED] District (Photo by Wil Boaz, RTI International)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 63
– [REDACTED] farmers ([REDACTED] women) trained on fair trade standards,
soil protection and manuring, and on risk analysis and management.
Hollanda FairFoods – Manufacturing Potato Chips for a Competitive Potato
Subsector in Rwanda and Beyond
PSDAG partnered with Hollanda
FairFoods Ltd to upgrade and expand
production its manufacturing facility for
domestic sales and regional exports.
Under this partnership, PSDAG is
supporting Hollanda to increase its
potato chip processing capacity from
[REDACTED] million bags per year to
[REDACTED] million bags per year.
Hollanda FairFoods is investing in new
processing machines and has
introduced new flavors to the local and
regional markets. As a result of
increased processing capacity,
Hollanda FairFoods will buy more fresh
potatoes from organized
farmers/cooperatives and PCCs.
Progress on implementation of Hollanda
grant activity during FY2017 includes:
• All new potato processing machines (processing, weighing, and packaging) were
installed at Hollanda FairFoods factory in [REDACTED] District and trials
conducted except for one fryer, which will be completed in Q1 FY2018.
• The Rwanda Environmental
Management Authority (REMA)
granted a waiver to the company
to use plastic packaging for local
Rwanda sales.17 This
development allows the company
to favorably compete for market
share against importers of potato
chips from other countries in the
East African Community.
• [REDACTED] Cooperative Union
helped the company find
cooperatives and farmers to
supply fresh Irish potatoes. As a result, Hollanda Fair Foods signed the first letter
of interest for a trial contract farming with two farmer cooperatives. If successful,
17 It took Hollanda FairFoods one and half years to be granted a waiver to use plastic packaging materials.
Hollanda employees displaying newly packaged potato chips products (Photo by Franz Benjamin,
PSDAG Project)
Hollanda employees managing quality of processing line potato chips before packaging
(PSDAG staff)
PAGE | 64 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
the company will enter into a long-term contract farming partnership for fresh
Irish potatoes.
• The quality of Irish potatoes supplied by farmers has improved significantly.
Before PSDAG support, the company had a conversion factor of [REDACTED] of
potatoes to [REDACTED] of chips, now it has a conversion of [REDACTED] kg of
potatoes to [REDACTED] kgof chips.
• The company reported increased and new market penetration. Market for
processed chips increased from one market (Kigali) to four other markets
including [REDACTED] . In addition, Hollanda FairFoods recorded increased
domestic sales in smaller towns like [REDACTED] .
• Key outcomes from implementation of grant activity:
– [REDACTED] in farm income for [REDACTED] large farmers ([REDACTED]
women).
– [REDACTED] in new capital investments to upgrade Irish potato processing
line.
– [REDACTED] in domestic sales of processed Irish potato products.
– [REDACTED] in export sales of processed Irish potato products to markets in
the East African Region.
– [REDACTED] ([REDACTED] women) trained on Good Agriculture Practices
(GAP).
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 65
FarmFresh – Marketing for Processed Precooked
Beans
PSDAG’s partnership with FarmFresh seeks to build
demand for processed, precooked beans for the middle-
class consumer, including nutrient-enriched HarvestPlus
beans. Under this grant agreement partnership, PSDAG
is supporting FarmFresh to develop and implement a
marketing strategy for precooked bean products and raise
second-round
equity financing
to expand its
business. This
will facilitate
FarmFresh to purchase beans from farmers
through a supply contract with HarvestPlus.
Progress on implementation of FarmFresh grant
activity during FY2017 included:
• FarmFresh reported increased sales of
iron-rich beans products. The company
bought [REDACTED] t of beans from
farmers and processed them for sale.
Sales have increased [REDACTED]
percent, from [REDACTED] t to
[REDACTED] t per month in the past
months due to increased demand for
pre-cooked beans products from the four largest local supermarkets in Kigali
City.
• A promotion campaign of iron-rich precooked beans products was conducted at
retail stores across Kigali supermarkets and other selling points. FarmFresh also
conducted marketing activities on social media (Facebook and Twitter) and radio.
Visit https://twitter.com/farmfreshrwanda and
www.facebook.com/farmfreshfoodcompany/
• The company secured four new retail export markets in Nairobi (Kenya) and
signed a distribution agreement with a Kenyan company to supply the current
and prospective customers with for iron-rich products.
• FarmFresh increased its domestic market portfolio after securing supply
contracts of precooked beans for [REDACTED] boarding schools in
[REDACTED] Province and the [REDACTED] ([REDACTED] t per month).
[REDACTED] , Managing Director of FarmFresh displaying new packaging of
iron-rich pre-cooked beans products (Photo by Franz Benjamin, PSDAG Project)
New advertisement posters for iron-rich beans products. Designs developed with
PSDAG grant (Photo by FarmFresh)
PAGE | 66 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
• The company obtained Standardization-Mark (S-Mark)18 for quality and food
safety compliance from the Rwanda Standards Board for all produced iron-rich
beans products.
• The company is conducting negotiations with BRD for financing to acquire and
renovate a processing factory in [REDACTED] District.
• Key outcomes from implementation of grant activity:
– [REDACTED] in new capital investments.
– [REDACTED] in new domestic sales of iron-rich beans.
– [REDACTED] in export sales of iron-rich beans to markets in the East African
Region.
– [REDACTED] cooperatives working with FarmFresh to market HarvestPlus
beans to FarmFresh and receiving technical assistance under the
Cooperative Professionalization (Activity 21).
Norlega Macadamia Nuts – Processing and Packaging for Macadamia Nuts
PSDAG has a partnership with Norlega to upgrade the collection, processing, and
packaging of quality macadamia nuts to meet market needs. PSDAG is supporting
Norlega to equip collection centers to purchase processing and packaging equipment for
macadamia nuts. This will facilitate Norlega to satisfy its market that requires quality nuts
that are well-processed and packaged. Before the grant, Norlega was supplying
1[REDACTED] t per month of processed roasted nuts to local and export markets. With
the new equipment, Norlega expects to increase processing capacity to [REDACTED] t
per month.
Progress on implementation of Norlega
grant activity during FY2017 included:
• All drying systems and weighing
scales acquired under the PSDAG grant
agreement were received and installed at
the four established collection centers.
• The company secured new markets
for their processed Macadamia nut
products. Norlega signed supply contracts
with two five-star hotels in Kigali, the
[REDACTED] , [REDACTED] , a French
company ([REDACTED] t/month), and a company based in Dubai.
18 S-Mark is specific to Rwanda. “The product certification is an attestation following assessment that; attributes, characteristics, quality, or status of goods, are in accordance with established standards. The scope covers foods and beverages, construction materials, cosmetics, paper based products and other industrial products.”
Packaging machine procurement by Norlega
as a co-investment leveraged by USAID funding (Photo by PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 67
• Norlega began the process of acquiring organic certification and a team from
International Trade Center (ITC) conducted an external audit. This certification
would open up new market opportunities in the US and Europe.
• Harvesting of Macadamia nuts commenced in Q3 and Norlega purchased
[REDACTED] t of macadamia nuts from farmers at [REDACTED] /kg and
exported [REDACTED] t to Vietnam at [REDACTED] /kg.
• Due to high demand for their products, Norelga opened a new sales location in
the [REDACTED] area of [REDACTED] .
• Norlega started trials on new biscuit (cookie) products to diversify sources of
income. The company is also testing production of cosmetics from Macadamia
processing waste.
• Key outcomes from implementation of grant activity:
– [REDACTED] in farm income for [REDACTED] beneficiary farmers
([REDACTED] women)
– [REDACTED] in export sales of processed Macadamia nuts to markets
3 Horticulture 14 PEBEC, Shekina, Agasaro Organic, Tuzamurane, Get It!, Green Harvest, Garden Fresh, Norlega.
Total 60
Figure 8. Components of the
Cooperative Professionalization Activity
PAGE | 72 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
To implement BDS and QMS technical assistance for these 60 cooperatives, PSDAG
competitively selected four local implementing partners (ADC, Solution Seekers,
SORWAFFA Ltd, and Sarura) that were oriented and trained on methodology and
content of the six cooperative professionalization modules. Key outcomes from
PSDAG’s support to PCCs included:
• In Q4, PSDAG and LSPs rolled-out implementation of BDS trainings. So far, 235
participants (90 women including 27 youth) from 24 cooperatives have been
trained on governance, member services, and strategic planning.
• Provided 24 cooperatives with BDS technical assistance covering governance,
organization structure, member services, strategic planning, and gender and
social inclusion. PSDAG will monitor and report on the impact of BDS support
which is expected to improve governance; member service delivery; inclusion of
women, youth, and PWDs; and overall business performance.
• Three cooperatives under CPP were supported to establish partnership with
Kenya Commercial Bank (KCB) to facilitate access loans to farmers (see Activity
28).
• A total of eight cooperatives from Kayonza, Gasabo, Ngoma and Kamonyi were
facilitated to formalize their registration with Rwanda Cooperative Agency (RCA).
Upon registration, these cooperatives will be able to legally conduct their
businesses and enter into contractual partnerships with other stakeholders
(financial institutions and buyers).
Potato Collection Centers Upgrade and Farmbook Grants from 2016
During FY2016, PSDAG partnered with 13 cooperatives to upgrade 17 PCCs in
Musanze, Burera, and Nyabihu Districts in the Northern Province of Rwanda. The main
goal of PSDAG’s support is to strengthen the business skills and consolidation capacity
of PCCs to collectively sell to wholesale
buyers. PCCs co-invested in post-harvest and
handling equipment such as weighing scales,
bagging materials, pallets, basins, tables,
chairs, and bookkeeping records. The
equipment and materials helped 17 PCCs
establish standardized weighing, sorting,
cleaning, grading, packaging, and bagging
processes and practices. PSDAG piloted the
use of Farmbook’s19 Map and Track module
for all PCCs to improve their capacity to collect
information on farm suppliers and make
informed business decisions.
19 The Farmbook Suite, created by Catholic Relief Services, is a set of integrated field-based data collection and reporting tools designed to help farmer groups through field-based agribusiness training, business planning, market analysis, and GIS linked service delivery. The suite consists of Map and Track, SMART Skills e-learning, and e-business planning.
Busoro y’Abasinga PCC staff in Nyabihu using iFormBuilder to reconcile the purchases and sales of Irish potatoes (Photo by PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 73
Progress on implementation of PCC Upgrade and Farmbook Grants during FY2017:
• PSDAG procured and distributed digital data collection equipment (laptops and
printers) to four pilot Potato Collection Centers (PCCs) to purchase Irish potatoes
from 2,488
farmers
(773
women). In
addition,
the 12
PCCs staff
were
trained on
use of the
iFormBuilder platform20 for daily data collection, data management and reporting
on Irish potato daily purchases and sales.
• PSDAG supported the four pilot PCCs to roll out digitization of all transaction
processes including production estimation, purchases from farmers, and sales to
buyers.
• 870 farmers (267 women) registered and estimated production for Season 2017-
A and forecasted profitability. Digitization of processes have been beneficial to
both the PCCs and farmers. PCCs are able to make projections of their sales,
easily calculate their profits, easily determine payments for individual farmers,
and generate financial records for use in negotiating for with financial institutions
for working capital. Digitization has also been beneficial to farmers who can now
estimate production per season, estimate gross incomes from expected
production, and access credit from financial institutions using individual
transaction records from the PCC. In addition, farmers reported increased
incomes due to the higher accuracy in using digital weighing scales as opposed
to the non-digital scales used before PSDAG support.
20 iFormBuilder by Zerion Software, is a universal, cloud based mobile data collection platform helping customers around the globe collect data on their mobile devices. https://www.zerionsoftware.com/iformbuilder/.
Ezakias Bunane (on the left) using a digital data collection system to confirm
quantity of potatoes he sold at PLANIKAP PCC in Busasamana area of Nyabihu District (Photo by PSDAG
staff)
COVAMIS cooperative members using a sheller purchased with
USAID funding, Rwamagana District (Photo by PSDAG staff)
PAGE | 74 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
• PSDAG assisted the four PCCs (piloting digitization of transaction processes) to
conduct the first seasonal
debriefing events. The
purpose of the seasonal
debrief events was to present
and discuss data generated
from the Map and Track ICT
Platform in Season 2017-A to
track business transactions
and performance and present
business trends at the PCCs.
The pilot debrief meetings
also sought to increase the
ability of PCCs to interact
with partners such as buyers
and financial institutions and communicate their pilot results with their
stakeholders. In addition, PSDAG conducted an ICT learning event on the
digitization of the potato value chain for four PCCs that piloted Farmbook. The
purpose of the learning event was to share experiences about the digitization of
the potato value chain. Forty-six participants (nine women) from different
institutions including MINAGRI, RAB, RSB, banks, cooperatives, and PCCs
attended this important event.
Progress on Digitization of four PCCs supported by PSDAG
Sample aggregated data presented during ICT learning event
• In June, PSDAG participated in two District Open Days for Rubavu and Burera
District Development Partners Joint Action Forum (JADF), which is a consultative
forum for district development stakeholders including community-based
organizations (CBOs) and local and international NGOs. PSDAG showcased
project activities implemented in partnership with PCCs in Rubavu and Burera
Districts.
• Building on the success of the digitization program with four PCCs, PSDAG
engaged more PCCs in Nyabihu, Burera, and Musanze districts to establish their
demand for partnership to scale up digitization of processes. So far, PSDAG has
Planikap PCC accountant making a presentation during Season A 2017 debriefing meeting, Rubavu District,
March 9, 2017 (Photo PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 75
identified 21 additional PCCs to scale up digital data collection systems. During
FY2018, a grant agreement mechanism will be used to partner with PCCs and
cooperatives that will be supported to digitize their data collection and reporting
systems. On a cost-sharing arrangement, selected PCCs will be supported with
ICT equipment (laptop, tablet with power supply and bag, modem, and printer) to
digitize their transactions.
• Key outcomes from PSDAG’s support to PCCs:
– $2,090,295 in farm income for 6,805 supplier farmers (2,493 women).
– $3,024,550 in domestic sales of Irish potatoes.
– $ 80,407 in export sales to markets within the East Africa Region (Uganda).
– 6,805 farmers (2,493 women) applied improved technologies and
management practices—including post-harvest practices and Farmbook
technology for their Irish potato transactions with PCCs.
Support to African Improved Food (AIF) Cooperatives
During Q2, PSDAG established a partnership with Clinton Development Initiative (CDI)
and KCB Rwanda to provide in-kind technical assistance training for post-harvest
activities to [REDACTED] maize cooperatives and facilitate access to inventory credit
loans to be extended by the bank. Under this partnership, KCB was to receive technical
assistance to support the development and delivery of other value chain financing
products. KCB is partnering with CDI that provides both assistance to cooperatives for
production activities and serves as a bridge to the AIF market.
PSDAG contracted a local company to train and coach [REDACTED] cooperatives on
post-harvest handling and quality management. The local service provider prepared and
presented a capacity building report to [REDACTED] stakeholders including cooperative
representatives, CDI, and PSDAG. The report highlighted the following market issues
experienced in the maize value chain during Season 2017-A:
• High demand of maize from neighboring countries impacted prices that rose
constantly leading to many farmers selling directly to traders rather than selling
through their cooperatives.
• KCB had planned to support cooperatives with a lending facility for maize
collection from farmers. However, KCB was unable to agree with IFC on the
conditions required in providing the refinancing capital as initially planned.
• Consequently, cooperatives were unable to meet their supply contracts with
maize off-takers.
Key outcomes from PSDAG’s technical assistance to [REDACTED] cooperatives:
• [REDACTED] in farm income for [REDACTED] maize farmers.
• [REDACTED] in domestic sales of value-added maize grain to premium off-
takers such as AIF.
PAGE | 76 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
ACTIVITY 22: FACILITATE INCREASED ACCESS TO MECHANIZATION SERVICES AND IRRIGATION
In FY2017, PSDAG built upon partnerships it established in FY2016 and utilized the
APS to identify new partners. Partners targeted included equipment vendors and leasing
companies. In Q1, PSDAG provided technical assistance to selected financial
institutions in developing or adjusting appropriate financial products for asset-based
financing. This was in line with expanding the mechanization access for improved
productivity and income. Major outputs from this assignment include presentation of first-
hand ideas on the financing models for both mechanization and irrigation financing and
finalizing a RFA for asset-based financing.
In Q3, PSDAG launched the RFA on asset-based financing on April 24, 2017. The
purpose of this RFA is to increase investment and facilitate value chain actors’ access to
equipment including mechanization and irrigation equipment through asset finance. The
final deadline to submit applications under this framework is December 30, 2017.
PSDAG started evaluating applications under the asset-based financing RFA in July
2017. Selected private partners will increase investment and facilitate value chain actors’
access to equipment including mechanization and irrigation equipment through asset
finance. Selection of partners under this RFA is underway.
Under the 2016 APS, PSDAG signed grant agreements with Green Systems Africa
(GSA) Ltd and KNU Agro Mechanized Service Ltd. Progress on implementation of
projects under this partnership is discussed below.
In addition, BRD made an investment of RWF 176 million in a tractor vendor to supply
six tractors to a rice cooperative in Bugesera.
Green Systems Africa (GSA) – More Maize per Drop
PSDAG entered into a partnership with
GSA in Q3 to facilitate access to irrigation
technologies by smallholder farmers in
drought-prone areas. The project
objective is to increase the availability of
drip irrigation in Rwanda and to promote
investment in irrigation by smallholder
farmers. In addition, the project will
demonstrate that there is a market and a
network to market, install, and maintain
the drip irrigation systems in Rwanda.
Successful market demonstration will then
attract private investments in the
manufacturing and marketing of affordable drip irrigation hardware made in Rwanda.
The More Maize per Drop (MMPD) project co-invests with GSA in introducing a new type
of drip irrigation on the market and increases farmers’ adoption of irrigation technology
by leveraging cooperatives’ relationship to a large buyer, Bugesera Agri-Business
Company (BABC), and financial institutions. GSA will target a drip irrigation market that
will service [REDACTED] ha of maize farms managed by [REDACTED] cooperatives
Grant signing ceremony between PSDAG and Green Systems Africa (Photo by PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 77
and [REDACTED] smallholder farmers. It will initially focus on water-stressed districts
[REDACTED] in [REDACTED] Province.
Progress on implementation of this partnership with GSA includes:
• GSA began procurement of gravity-based drip irrigation equipment21 and a
training plan for [REDACTED] operators on the usage of drip irrigation kits.
• GSA procured drip irrigation equipment and started the installation of equipment
in a demo plot located in [REDACTED] District. Training of [REDACTED]
operators on use of irrigation kits and maintenance will be conducted in Q1
FY2018.
• Key outcomes from implementation of this grant activity include:
– [REDACTED] in new private sector investment in the agriculture sector or
food chain.
KNU Agro Mechanized Service Ltd
PSDAG signed a grant agreement with KNU in Q3 to facilitate access to mechanization
services by farmers. The project is expected to improve mechanization service provision
to farmers in [REDACTED] districts. With
PSDAG support, KNU will invest in eight
tractors with accessories and implements.
The objective of the project is to increase
the company’s revenues by providing more
efficient mechanization services and
covering more acreage to enable farmers to
cultivate unused land due to limited labor at
peak seasons. It is anticipated that
[REDACTED] farmers will access
mechanization services and [REDACTED]
ha will be mechanized by the end of
FY2018.
Progress on implementation of this grant activity includes:
• KNU (with PSDAG grant) purchased five tractors with accessories and
implements. KNU has begun to use these tractors to provide mechanization
services to farmers during Season 2018-A.
• KNU was unable to secure a loan of RWF [REDACTED] as their leverage under
the grant agreement partnership. The partner has approached another bank for a
loan facility of a similar amount and negotiations are underway.
• Key outcomes from implementation of this grant activity include:
21 GSA product is entirely gravity-based, requiring no expensive pump or electricity, and is designed to reduce clogging. This gravity-based technology is best suited for small scale farmers with small plots of lands hence suitable for the target beneficiaries that GSA will be working with.
Tractors bought with USAID co-funding, September 2017 (Photo by KNU)
PAGE | 78 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
– [REDACTED] in value of new private sector investment in mechanization
equipment (tractors).
ACTIVITY 23: EXPANDING ACCESS TO QUALITY SEED
PSDAG identified six partners who will increase the supply of potato seed. During
FY2017, PSDAG made the following progress towards expanding access to quality
seeds:
• Finalized the Potato Value Chain Consolidator Network Analysis and Profitability
Analysis for investment in potato seed production. These analyses generated
data and information on demand, supply, and pricing of potato seed (see Table
13. PSDAG continues to use these analyses in evaluating the feasibility of
business models proposed in private sector applications in response to the APS.
• Under the 2016 APS, PSDAG completed the process of competitively selecting
seed companies involved in both early seed generation and other stages of seed
production. As a result, PSDAG signed grant agreements with INES Ruhengeri,
SPF Ikigega, and Agriseeds African Ltd. In addition, two applications from
Abatuburambuto and Mudende cooperative were approved and grant
agreements with the partners signed in October 2017. Another prospective
partner, International Potato Center (CIP), is at the final stages of grant award
22 Land amounts are based on the amount of land needed to plant the supply from the previous stage. For example, it will require 8 ha to process the amount of minitubers produced during the first phase. If farmers use smaller land say 1ha, it will take longer to break even or even cover the investment cost in assets for the entire process. 23This cumulative cash flow corresponds to the selling time for each of these crops e.g. If you plant minitubers in March, you will sell them in September and your corresponding cumulative cash flow is RWF 76,102,000
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 79
approval. With PSDAG support, these partners will invest in provision of early
generation Irish potato seeds.
The following projects implemented by PSDAG partners show progress on expanding
access to quality seed.
INES Ruhengeri – Increasing Quality and Quantity of Potato Seeds
PSDAG has a partnership with INES Ruhengeri to implement a project activity to
increase the quantity and quality of certified potato seeds in Rwanda. Under a grant
partnership, PSDAG is supporting INES to purchase laboratory equipment and a
greenhouse to supplement the potato seed production capacity of Rwanda Agriculture
Board (RAB) by 50%. It is expected that [REDACTED] vitro plants and [REDACTED]
mini-tubers will be produced. In addition, the number of seed producers will increase
from [REDACTED] individual farmers to [REDACTED] farmers, from [REDACTED]
cooperatives to [REDACTED] cooperatives, and from [REDACTED] companies to
[REDACTED] companies.
Progress on implementation of INES grant activity during FY2017:
• INES established formal business relationships with [REDACTED] potato seed
producers, who will purchase vitro plants and tubers.
• Two screen houses were constructed, equipped, and used to plant [REDACTED]
vitro-plants, which are expected to produce [REDACTED] mini-tubers. These
tubers are expected to be harvested and sold to seed multipliers during early Q1
FY2018.
• Extension of the tissue culture laboratory was completed and has been equipped
with USAID funding. The lab is fully equipped and operational and has already
been used to produce [REDACTED] vitro-plants.
• INES conducted a training on Good Agriculture Practice and on Integrated Pest
Management for [REDACTED] seed multipliers ([REDACTED] women).
• Key outcomes from implementation of grant activity:
- [REDACTED] in new capital investments (screen house and equipment).
- [REDACTED] in domestic sales of mini-tubers.
- [REDACTED] farmers ([REDACTED] women) applied new crop production
technologies—certified improved seed varieties.
PAGE | 80 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Seed Potato Fund (SPF) Ikigega Ltd – Investing in Quality Seed Potato
Production and Commercialization
Under a grant agreement partnership with
PSDAG, SPF will invest in one aeroponic house
for producing mini-tubers, renovate and equip
seven warehouses with equipment for storing
seeds, and scale up its monitoring of seed
multiplication managed by a network of seed
producers. The company will buy and store
seeds from farmers in four districts including
[REDACTED] . With support from PSDAG, SPF
Ikigega will expand its operations and target
sales of [REDACTED] t of certified seeds over
the next two seasons, ultimately reaching
[REDACTED] t of certified seeds and
[REDACTED] t of basic seeds after four years of
implementation. Increased sales are expected
to result in turnover of RWF [REDACTED] in the
first year up to RWF [REDACTED] after four
years.
Progress on implementation of SPF grant
activity includes:
• Seven warehouses to be renovated and
equipped in collaboration with SPF,
PSDAG, and Post-harvest and Agribusiness Support Project (PASP)24 were
identified. Each warehouse will stock [REDACTED] t of potato seeds.
• Construction of an aeroponic house is underway and expected to be completed
during Q1 FY2018.
• Key outcomes from implementation of SPF grant activity include:
– [REDACTED] in income for [REDACTED] cooperatives supplying of basic
and certified potato seeds.
– [REDACTED] in value of new capital investment to upgrade potato seed
storage facilities (equipment and warehouse).
– [REDACTED] in domestic sales (basic potato seeds and certified potato
seeds) to [REDACTED] buyers.
Agriseeds African Ltd – Quality Potato Seed Production
In Q4, PSDAG signed a grant agreement partnership with Agriseeds to provide
investment support in production of early generation Irish potato seeds. The project will
establish a commercial plant tissue culture laboratory and aeroponic production system
24 Implemented by MINAGRI with funding from IFAD
Production of vitro-plants at a laboratory equipped with USAID funding,
[REDACTED] District (PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 81
which seasonally produces vitro-plants and mini-tubers. This is expected to boost the
production of quality Irish potato early generation seeds (vitro plants and mini-tubers).
Agriseeds will be able to supply [REDACTED] potato vitro-plants and 700,000 mini-
tubers each year, which is equivalent to [REDACTED] % of national market share for
vitro plants and [REDACTED] % for mini-tubers. With this project, Agriseeds will become
the second private company in Rwanda that invests in early generation potato seed at
the level of vitro plants.
Implementation of this grant activity began late in Q4 FY2017; implementation outcomes
will be reported during FY2018.
ACTIVITY 24: INNOVATIVE TECHNOLOGY CHALLENGE FUND
PSDAG decided not to release the last RFA for the Innovation Challenge Fund. PSDAG
identified a partner through the 2016 APS that presented an opportunity to invest in an
innovated ICT solution that offers a communications platform for collecting information
from farmers, disseminating agricultural information to farmers and group
communications that can facilitate aggregation and market access as well as extension
services.
N-Frnds- Mobile Agriculture ICT Platform and Young Entrepreneurs Fellowship
PSDAG entered into a grant agreement partnership with N-Frnds to invest in the use of
ICT to increase the efficiency and productivity of the entire smallholder agricultural value
chain in Rwanda. This project will make ICT accessible and affordable to all agricultural
value chain participants without the hidden cost burden of mobile data, smartphones, or
an Internet connection. With PSDAG support, N-Frnds will be able to offer a
comprehensive package of agricultural, extension, and climate-related information and a
cost-effective communications platform adapted for and targeted to farmer promoters,
agribusinesses, buyers, and aggregators. N-Frnds foresees that within the first year,
their platform will help up to [REDACTED] smallholder farmers and [REDACTED]
private enterprises and cooperatives adopt improved technology and management
packages. In the first year, service will be free to farmers and subsequent fees are
around [REDACTED] per month, which is cost effective compared to the use of SMS
technology that costs RWF 10 per message).
In January 2017, N-Frnds signed an MOU with MINAGRI to provide its information
dissemination and collection services to MINAGRI and Rwandan farmers. PSDAG
funding is being used to support these activities and expand them to other partners
including CIAT to distribute climate related information to farmers and selected PSDAG
private sector partners to collect and disseminate information according to their needs.
The platform also enables farmers and other agricultural value chain and eco-system
players to interact through its chat and group chat features which are built into the
platform.
PAGE | 82 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Information from MINAGRI’s website redacted into N-Frnds platform for access by smallholder farmers
Sample of the daily milk collection data generated by N-Frnds platform
Progress on implementation of N-Frnds grant activity during FY2017:
• N-Frnds developed, piloted, and implemented a digital milk collection system for
MINAGRI. The system was made available to [REDACTED] MCCs throughout
the country. So far, [REDACTED] MCCs use the ICT platform to report on their
activities on a daily basis.
• N-Frnds has continued to increase information offered on the ICT platform. New
information on animal health was added. In addition, MINAGRI website
information was reformatted and added to the N-Frnds platform to facilitate
access to information on extension services, crops, and land consolidation.
nFrnds began to work with PSDAG partners to add additional modules including
pesticide information.
• N-Frnds has been working with a group of [REDACTED] coffee farmers and farm
promoters in [REDACTED] District. The company engaged these farmers to
receive the N-Frnds service free of charge, adding both the local and
international coffee prices and weather information to the platform (farmers can
select their region and receive relevant weather information).
• The company created
analytics reports to monitor
uptake of N-Frnds ICT
platform by MCCs. The
analytics reports were shared
with MINAGRI for use in
monitoring the situation of
MCCs across the country.
• N-Frnds recruited the first
Young Entrepreneurs
Fellowship (YEF) program. N-Training of YEF on use of N-Frdns
(Photo by N-Frnds)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 83
Frnds trained [REDACTED] young women in communications, leadership,
critical thinking, marketing, entrepreneurship, and business development skills.
The fellows will work with Irish potato cooperatives to help them adopt the N-
Frnds ICT platform for access to market and weather information. The fellows
successfully conducted demonstrations to [REDACTED] farmers in [REDACTED]
District, showing farmers how to use the N-Frnds platform. They helped farmers
look up agricultural information on different crops such as Irish potatoes and use
the chat and group chat functions.
• N-Frnds trained [REDACTED] CIATs trainers who went to train [REDACTED]
Participatory Integrated Climate Services for Agriculture (PICSA) farmers on use
of the platform both for communicating among themselves and for receiving
weather information. N-Frnds is working with CIAT to add more information on
PICSA to the platform.
• Key outcomes from implementation of grant activity:
– [REDACTED] people ([REDACTED] women) including young women
entrepreneur fellows, farm promoters, and MCC representatives trained on
the use of ICT to access market, agriculture, and weather information.
– [REDACTED] people ([REDACTED] women) applied improved ICT
technologies or management practices.
1.2.3 OBJECTIVE 2.2.2: IMPROVING KNOWLEDGE OF STANDARDS
ACTIVITY 25: SUPPORT CAPACITY BUILDING AND INVESTMENT IN INTERNATIONAL STANDARDS
In FY2017, under the VCCF partnerships, PSDAG supported companies to make
investments in international quality standards and meet certification requirements of the
domestic and export markets (see Table 14).
Table 14. PSDAG’s support to private partners on international quality standards
Partner Value chain Name of Project Activity
International Quality Standards and Certifications
Tuzamurane Cooperative Horticulture Dried organic pineapple production
Awarded Organic Certificate after an international audit on its compliance with fair trade certification requirements.
FarmFresh Beans Marketing for processed precooked beans
Obtained S-Mark certification for quality and food safety compliance from RSB for all their iron-rich products.
Masaka Creameries Dairy Production and marketing of high value dairy products
Obtained S-Mark certification for quality and food safety compliance from RSB for all their milk products.
Kigali Farms Horticulture High value mushroom and substrate production
Obtained HACCP certification for their
PAGE | 84 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Partner Value chain Name of Project Activity
International Quality Standards and Certifications
for export and household nutrition
Mushroom substrate and mushroom production site in Musanze District.
Norlega Macadamia nuts Processing and packaging for Macadamia nuts
Begun the process of acquiring organic certification following an audit by the International Trade Center (ITC). This certification would open up new market opportunities in the US and Europe.
Cyohoha Modern Farming (newly signed partner)
Horticulture Contract farming and postharvest capacity building for farmers surrounding Lake Cyohoha.
Referred the partner to RSB/WTO for full information on quality requirements of countries where the partner intends to export onions.
Green Harvest Horticulture Expanding processing of chili sauce
PSDAG supporting S-Mark and HACCP certification.
Kizinga Farm Ltd (prospective partner)
Horticulture Marketing of organic tree tomato fruits
Conducted HACCP and organic certification assessment to establish capacity building and budget implications under the grant application which is under negotiation.
Get It (prospective partner under final negotiations)
Horticulture, meat and dairy
Cold storage for produce distribution
Assessed food safety measures to establish compliance with HACCP requirements.
Garden Fresh Ltd (prospective partner under negotiations)
Horticulture Increasing horticulture produce for export
Assisted the company to get information on local RSB certification process to comply with BRC Global
Standards25 for food safety certification. PSDAG plans to provide technical assistance to Garden Fresh to ensure compliance with BRC standards.
1.2.4 OBJECTIVE 2.2.3: IMPROVING ACCESS TO PACKAGING MATERIALS AND SOLUTIONS
ACTIVITY 26: ANALYSIS OF PACKAGING BUSINESS OPPORTUNITIES
PSDAG decided that based on current work by GIZ and MINEACOM as well as the
status of policy reform on packaging, it would not fund an analysis of packaging
256 https://www.brcglobalstandards.com/
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 85
opportunities. Recent studies have shown that at current volumes, SMEs are likely to
continue sourcing their packaging from regional and international vendors.
ACTIVITY 27: INNOVATIVE TECHNOLOGY CHALLENGE FUND FOR PACKAGING SOLUTIONS
Based on the results of a MINICOM assessment and strategy around packaging
materials, PSDAG decided not to release an RFA specifically targeting partners
investing in domestic private-sector packaging solutions. Through a number of VCCF
partnerships, PSDAG has supported processor use of improved packaging solutions.
Under Objective 1, PSDAG has been engaging with REMA on public-private dialogue to
share challenges facing the private sector in Rwanda.
Under the VCCF, PSDAG has supported one company, Agroplast, to invest in recycled
plastic bag processing and has enabled a number of its partner companies to obtain
machines that improve product bagging and sealing. Table 15 shows how PSDAG
private sector partners have invested in improved packaging.
Table 15. Examples of PSDAG Partners Investing in Packaging
Partner Business Investment in Packaging
Green Harvest Processed “Sabana” chili products Acquiring machines for labelling, capping, and printing dates.,
Agroplast Production of packaging materials Acquiring a machine for production of netted bags for packing horticulture products and potatoes
Norlega Roasted macadamia nuts Automated packaging and sealing machine
Masaka Processed dairy products Acquired a sealing machine for yoghurt cups
Shekina Processed dried cassava leaves for local and export market
Acquired sealing machines for dried cassava leaves packaging
Tuzamurane Processed dried pineapple for local and export market
Acquired sealing machines for dried pineapple packaging
GASHORA Farm (under negotiation)
chili production and processing for export markets
Acquiring machines for bottle filling, capping and batch coding machine.
Agroplast – Production of Packaging Materials Using Plastic Waste Material
PSDAG has entered into partnership with Agroplast to co-invest in setting up a state-of-
the-art factory for the manufacture of packaging materials (netted bags), agricultural
tubes, and sheeting. Under this partnership with PSDAG, Agroplast will invest in
additional machinery required to transform plastic waste into netted bags for potato and
other fresh fruit and vegetable packaging, which in turn will facilitate added value for
those agricultural value chains. The main objective of this project is to improve quality
and add value to potatoes through the provision of good packaging material.
PAGE | 86 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Packaging material, particularly for marketing potatoes, is a key constraint identified by
PSDAG and its partners that reduces the value of smallholder products on the market. In
addition to the jobs created by this processing facility, improved packaging will increase
farmer incomes by reducing damage and post-harvest losses.
Progress on implementation of grant activity:
• Agroplast bought new equipment for the recycling line. The company began to
use the new equipment to
produce plastic products (boots,
tubes, and sheeting) for use in
the agriculture sector.
• The company raised
[REDACTED] in capital to
invest in construction of the
processing factory which is
underway.
• Agroplast trained six
cooperatives on plastic waste
management and created a new
cooperative for plastic waste
collection in [REDACTED] .
• The company secured a market
for plastic products with one cooperative that produces small bananas (apple
bananas) for export. Agroplast also secured a contract with the [REDACTED] ,
which is a large off-taker of plastic packaging products, to supply agricultural
tubing.
• Key outcomes from implementation of grant activity:
– [REDACTED] in incomes to [REDACTED] suppliers of plastic waste
materials.
– [REDACTED] in domestic sales of agricultural plastic products (tubes, boots,
and sheeting).
– [REDACTED] in new capital investments in land and facility improvement.
– [REDACTED] suppliers (seven women) of plastic waste trained on
environmental protection.
- [REDACTED] jobs created ( [REDACTED] women).
Agroplast employees producing agriculture tubes and plastic products using plastic waste
materials, [REDACTED] District (Photo by
Franz Benjamin, PSDAG)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 87
Access to Finance for Women Encourages Sustainable Growth and Increased Private Investment by Women in the Future.
PSDAG works with its Agri-SME partners to identify financing needs and then leverage suppliers’ relationships with buyers to increase access to finance. In FY2017, PSDAG continued to improve access to finance by linking grantees with financial institutions and through partnerships with MFIs that have a strong social inclusion and agriculture focus.
• PEBEC helped [REDACTED] women famers (40% of their suppliers) access [REDACTED] in loans from Duterimbere MFI to purchase post-harvest equipment.
• PSDAG negotiated a partnership with Duterimbere MFI, a national woman-focused financial institution that offers women financial products suitable for agribusiness. PSDAG will support Duterimbere in investing at least [REDACTED] in agriculture by providing [REDACTED] clients, including individuals, solidarity groups, and cooperatives with loan products adapted to their needs; their goal is 80% lending to women.
• Shekina is finalizing an electronic payment system aiming at facilitating access to finance for women producers and increasing saving. Farmers have been given passbooks to register sales and receive the payment using mobile accounts. The system is being developed in partnership with Tumba College of Technology.
In total, PSDAG facilitated access $2,923,745 in loans of which $408,918 benefited women and $1,497,697 benefitted both men and women (mixed-ownership) for investment into the agricultural value chains. PSDAG expects to strengthen these results in FY2018 through partnership with MFIs such as Duterimbere and Umutanguha Finance Company and by leveraging stronger vertical linkages between farmers and buyers to facilitate value chain financing.
1.2.5 OBJECTIVE 2.2.4: IMPROVING ACCESS TO FINANCE FOR FARMERS AND AGRIBUSINESSES
ACTIVITY 28: FACILITATE FINANCE FOR AGRIBUSINESSES
PSDAG works with its SME partners to identify their need for financing and opportunities
to leverage its relationships with buyers to increase access to finance by agricultural
value chain actors. In FY2017, PSDAG continued to improve access to finance by
linking grantees with financial institutions.
In total, PSDAG private sector partners accessed $ 2.9 M in loans to upgrade
agricultural value chains by investing in capital facilities and equipment and funding
operations expansions. The estimated total leverage of 12 newly signed grantees in
FY2017 is $3.5 million. Progress on implementation of this activity includes:
• PSDAG grant funding enabled PEBEC access to a [REDACTED] credit line for
working capital from [REDACTED]. In addition, PEBEC suppliers [REDACTED]
accessed [REDACTED] in loans from [REDACTED] to purchase post-harvest
equipment. Further, PSDAG linked PEBEC with [REDACTED] for a
[REDACTED] working capital loan. The bank agreed to finance PEBEC at an
[REDACTED] interest rate, which is lower than the [REDACTED] interest rate
offered by other commercial banks. PEBEC will use the loan to purchase fresh
chili from farmers to increase its export sales. Details are still under negotiation.
• PSDAG also linked KNU Agro Mechanized Service Ltd., a local mechanization
service provider, with [REDACTED] for asset financing. KNU requested a loan of
[REDACTED] as their leverage contribution under PSDAG’s grant agreement
partnership. This is still under negotiation.
PAGE | 88 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
• PSDAG linked Shekina with [REDACTED] and [REDACTED] for an investment
loan of [REDACTED] to expand Shekina’s factory. Negotiations for the financing
of this facility are underway.
• The project linked Green Harvest, a chili processor and project grantee, with
[REDACTED] for debt financing worth [REDACTED] for investment in equipment
to expand its processing capacity. Negotiations were not successful with
[REDACTED] and Green Harvest is now negotiating with [REDACTED].
• Because of partnership with PSDAG, Tuzamurane cooperative was able to raise
[REDACTED] from [REDACTED] to strengthen its pineapple collection capacity
from suppliers and has made the equipment received in the form of grants much
more attractive. Moreover, following the increase in market demand from
[REDACTED] t to[REDACTED] t per month, Tuzamurane needs to acquire more
dryers. PSDAG is supporting the business development of Tuzamurane and has
linked Tuzamurane with financial service providers. PSDAG is also providing
BDS support to Tuzamurane to support its ability to access and manage credit.
• PSDAG facilitated a loan worth [REDACTED] to DEYI from [REDACTED]. The
loan was provided as a working capital facility to procure raw material for its
processing unit.
• In Q4, under PSDAG’s Cooperatives Professionalization Program targeting 60
cooperatives, a capacity assessment identified access to finance for their
investment needs as a major constraint. PSDAG’s goal was to support 20
cooperatives in access to financing to professionalize their operations as well as
facilitate their members’ access to input financing. PSDAG presented 10 out of
20 identified cooperatives to [REDACTED] to facilitate access to loans for
Season 2018-A inputs. A training plan is under discussion with [REDACTED] to
help prepare the cooperatives for financing. The following cooperatives have
already formalized this partnership:
– Cooperative COIMU in [REDACTED] District signed an MOU with
[REDACTED] to recieve training and agricultural loans to PCCs owned by the
cooperative. Loan funds will be disbursed during FY2018.
– Indatwa za Kamonyi in-kind inputs (maize seeds and fertilizers) credit request
of [REDACTED] was approved by [REDACTED], a not-for-profit organization.
Farmers will use inputs during Season 2018-A and pay back the loans after
harvesting and selling their produce to AIF.
– Ubumwe Bugamije Iterambere Cooperative in [REDACTED] District is being
assisted to get a loan of [REDACTED] from [REDACTED] to buy maize from
farmers during Season 2018-A.
• PSDAG entered into an MOU partnership with Kumwe Logistics to help the
company mobilize capital financing. This MOU partnership is discussed below.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 89
Kumwe Logistics – MOU for TA to Mobilize Capital Financing
In Q3, PSDAG entered into a partnership with Kumwe, a transport and logistics
company through an MOU (see Activity 19). The company is raising funds for technology
improvement, working capital, and aggressive marketing of its services. Under the MOU,
PSDAG will provide business development services in a bid to help the company be
“investor ready” and raise capital through equity or debt to scale up Kumwe’s business in
Rwanda and link to surrounding export markets. Technical assistance will cover the
following areas: conducting a regional market analysis, creating a pitch book for the
company, and preparing investor documents.
ACTIVITY 29: BUILD THE CAPACITY OF FINANCIAL INSTITUTIONS TO INCREASE AGRICULTURAL LENDING
Support to Rwanda Development Bank (BRD)
PSDAG has an MOU partnership with BRD. Through this partnership, PSDAG will
support BRD and other partner finance service providers in increasing their capacity to
lend in agriculture by providing tailored technical assistance to both the BRD agriculture
department staff and those involved in lending to the sector. Under this MOU, BRD
agreed to extend an agriculture loan portfolio of [REDACTED] over one year and more in
the next year of partnership with PSDAG. Annex XVI includes a copy of the MOU with
BRD.
Progress on implementation of MOU with BRD during FY2017:
• A training needs assessment for BRD was carried out to determined capacity
building needs for the Agriculture Lending Department staff. Following this
assessment, PSDAG assisted BRD in developing training modules on value
chain financing, risk assessment, and refinancing that will fill capacity gaps
among BRD staff hence accelerating loan evaluation, approval and
disbursement. These modules will be delivered during FY2018.
• PSDAG facilitated training of eight BRD staff (four women) on a cash flow
analysis tool for cassava value chains. As a follow up to this training, PSDAG will
continue to coach and mentor BRD on how to use cash flow analysis skills to
assess viability of agriculture business projects for different value chains.
• BRD approached PSDAG for support in the design and development of specific
value chain financial products based on its strategic and operational plan for
2017. The targeted value chains are potatoes and maize. In addition, micro
financial institutions with wholesale refinancing facilities will also be targeted
under the BRD and PSDAG partnership. PSDAG hired a STTA and a local
consultant that provides this assistance to BRD as well as other technical support
as required by BRD.
• BRD approached PSDAG for support in the development of a [REDACTED]
million cassava value chain project. The project intends to mobilize farmers
cultivating around [REDACTED] ha of land in [REDACTED] District that will be
supplying fresh cassava to a processing company—TASCO. PSDAG supported
a rapid feasibility study and draft application to United Nations Land Neutrality
PAGE | 90 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
and Degradation Fund (LDNF). The application is on track to be submitted in Q1
of FY2018.
• Key outcomes from implementation of MOU with BRD:
– PSDAG staff supported BRD in analyzing a loan request from a rice
cooperative interested in investing in mechanization. Because of this support,
BRD disbursed [REDACTED] to a tractor vendor to supply six tractors to the
cooperative.
– Using cash flow tools developed with PSDAG support, BRD assisted SPF
Ikigega (one of PSDAG’s private partners) to conduct a business plan
analysis. Results from cash-flow analysis helped BRD develop a feasible
financing facility in terms of amount and frequency of loan disbursements as
well as the maturity period. BRD has approved a working capital loan
financing request of [REDACTED] million to SPF Ikigega. The loan will be
disbursed in FY2018. SPF invests in purchase of quality seed from seed
multipliers, stores the seed for three months, and sells it at the beginning of
the planting season.
Support to Partner Finance Service Providers
Asset Financing RFA to leverage VCCF. Under the asset-based financing RFA
(discussed under Activity 22) published in April, PSDAG will leverage VCCF funds to
increase investment and facilitate value chain actors’ access to equipment through an
asset finance program in collaboration with financial institutions and recognized
suppliers. Default risk and collateral requirements are the main constraints to businesses
and individuals being able to access financing to invest in these assets. Under this RFA,
PSDAG will help the private sector increase investment in agricultural assets by
reducing major constraints and risks to asset-based financing.
Duterimbere. PSDAG continued partnership negotiations with Duterimbere
Microfinance. Under this envisaged partnership, PSDAG will facilitate provision of
training on product development and financial education in order to increase the amount
of loans to agriculture sector actors. The grant award to Duterimbere was approved by
USAID and the grant agreement will be signed in Q1 of FY2018.
Kenya Commercial Bank (KCB) Rwanda. PSDAG signed an MOU with KCB Rwanda
to create a formal mechanism for partnership between the two institutions with the
objective of increasing access to finance to the project partners. Under this partnership,
PSDAG will provide technical support to nine new KCB agriculture department staff that
need first hand skills and knowledge on lending to the agriculture sector. In addition,
PSDAG will provide technical assistance to KCB on cash flow training as well as on
developing irrigation and mechanization products. The technical assistance will help in
designing asset-based financial products and other value chain financing products to
selected financial institutions including BRD, KCB, Duterimbere, Atlantis Microfinance,
and Bank of Kigali.
Progress on implementation of MOU with KCB during FY2017:
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 91
• PSDAG facilitated training of 10 staff (5 women) in KCB’s agriculture finance
department. Topics included cash flow analysis tools for PSDAG priority value
chains including maize, Irish potatoes, pineapples, chili, and mushrooms. KCB
staff were also coached on how to use cash flow analysis tools to measure the
viability and profitability of agriculture business projects in different value chains.
• KCB has identified [REDACTED] rice cooperatives that need technical
assistance on post-harvest, governance and financial literacy trainings as a
prerequisite for the loan. PSDAG and KCB have agreed to support the selected
cooperatives as a prerequisite for the bank to lend to them. It is expected that an
estimated RWF [REDACTED] million will be disbursed to around [REDACTED]
farmers through their cooperatives as input loans and to rice millers as working
capital. The rice cooperatives
trainings preparations have started
for [REDACTED] Province
cooperatives; they will take place in
Q1 FY2018.
• KCB has started exploring the
opportunity of wholesaling to MFIs
and has already agreed on the
development of a wholesale product
for microfinance. Five MFIs have
already been assessed and selected
by PSDAG to be part of this product.
Subsequently, a two-day training on
MFI refinancing was conducted for
13 KCB staff (4 women) to provide
them with first hand tools in assessing and conducting due diligence to MFIs and
SACCOs. The trained KCB staff are expected to use acquired skills and
knowledge to design an appropriate financial product to serve MFIs purposes.
• Key outcomes from implementation of MOU with KCB:
– [REDACTED] million disbursed to [REDACTED] rice processors in
[REDACTED] Province for working capital ([REDACTED] %) and input loans
([REDACTED] %) advanced to [REDACTED] cooperatives benefiting around
– As a result of the MFI Refinancing training and after product development,
PSDAG’s facilitation is anticipated to result in [REDACTED] in increased
lending to MFIs and SACCOs with a focus on lending to agriculture in
FY2018.
ACTIVITY 30: INCREASED PROVISION OF AGRICULTURE INSURANCE
During Q1, PSDAG co-hosted with Access to Finance Rwanda (AFR) an agriculture
insurance roundtable attended by 28 participants from both public institutions (MINAGRI
and MINECOFIN), private sector actors, and development partners. Table 16 highlights
[REDACTED] (Managing Director, KCB) and Melanie Bittle (COP, PSDAG) at the MOU
signing ceremony between KCB and PSDAG on May 10, 2017 (Photo by PSDAG staff)
PAGE | 92 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
a summary of agri-insurance products presented and discussed during the roundtable
workshop.
Table 16. Agri-insurance products presented during the stakeholders’ roundtable workshop
Product type Features
Area yield • Preferred by farmers and financial institutions as they covered more risks beside rain fall. • Easier for clients to understand and have lower basis risk than weather index products. • For financial institutions, the coverage is more directly related to the default risk of input
credit. • Area-yield schemes require time to gather yield data information and may delay pay-out. • Area yield results are benchmarked for homogenous areas with farmers within a zone
getting a standard pay-out. • For area yield to work in Rwanda, there is a need to identify homogenous zones with similar
risks and have reliable 3rd party verified seasonal yield data.
Multi-peril • Is a more comprehensive product covering multiple perils. • Time consuming to do the sampling of farmers. • Inspectors look at individual farmers to determine pay-out.
Weather-index products
• Easier to design, require less labor to determine pay out and can be cheaper to scale but often only cover one peril (rainfall).
• In Rwanda, factors such as gaps in historical rain patterns and high variability of rain within a small area due to its topography increases basis risk.
• There is always basis risk with index-based products, but can be reduced with improved data; in Rwanda, data is challenging to collect and rely upon due to the topography and rainfall variations.
• Major losses at a country (macro) scale can be addressed quickly with quick indexed pay-outs.
• Farmers want comprehensive coverage but if comprehensive products are currently cost-prohibitive, an index product with more limited coverage could be offered while identification of homogenous zones and a distribution scheme are worked out.
As a follow-on to the agriculture insurance roundtable, PSDAG initiated discussions with
MINAGRI, MINECOFIN, donors, and other private stakeholders to complete the design
and feasibility study for a national universal product.26 Access Finance Rwanda (AFR)
identified a company to design a National Agriculture Insurance Scheme in Q3 and
PSDAG contributed to the review and selection process. The two institutions will
continue to help and lead this initiative
until the national agriculture insurance
products are designed and ready to be
tested.
Subsequently, MINAGRI commissioned
an agriculture insurance pilot scheme
through the financial support of AFR as
a result of PSDAG roundtable
discussions held in November 2016.
Once the pilot is finalized, PSDAG
plans to provide technical support to
26 At this stage, products are aimed at farmers for production.
PSDAG COP Melanie Bittle making a presentation at the Agriculture Insurance Roundtable, Kigali, November 10, 2016
(Photo by PSDAG staff)
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 93
insurance companies that will need to take part in the pilot; the type of support will be
determined once the needs are known.
PAGE | 94 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
2. MONITORING & EVALUATION AND CROSS-CUTTING THEMES 2.1 MONITORING AND EVALUATION
PSDAG implemented the approved FY2017 M&E plan by systematically monitoring,
documenting, and reporting progress (accomplishments, lessons learned, and
constraints) on implementation of Annual Work Plan activities. In addition, PSDAG also
tracked and reported progress against set performance indicator targets to measure
project outputs, outcomes, and success stories.
2.1.1 FY2017 M&E PLAN
During Q1, PSDAG finalized the FY2017 M&E plan by adjusting indicator targets to
include revised targets forecasted by 16 new prospective grantees shortlisted for award
of grants under the FY2016 APS. In addition, PSDAG in consultation with USAID COR
changed the reporting frequency of the following indicators from quarterly to annual
reporting to harmonize PSDAG results in FTFMS and AIDTracker+ (see Table 17).
Table 17. Indicator reporting frequency—changed from quarterly to annual reporting Code Name of Indicator
EG.3.2-20 Number of for-profit private enterprises, producers’ organizations, water users associations, women’s groups, trade and business associations and CBOs that applied improved organization-level technologies or management practices with USG assistance
EG.3.2-17 Number of farmers and others who have applied improved technologies or management practices with USG assistance
E.G.3.2-18 Number of hectares under improved technologies and management practices with USG assistance
Archived but converted to Custom
Number of members of producer organizations and community based organizations with USG assistance
EG.3.2-4 Number of for-profit private enterprises, producers’ organizations, water users associations, women's groups, trade and business associations, and community-based organizations (CBOs) receiving USG food security related organizational development assistance
4.5.2-Z04 Number of Micro/Small and Medium Enterprises (MSMEs) receiving business development services from USG assisted sources
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 95
2.1.2 PERFORMANCE TRACKING AND REPORTING
PSDAG monitored and reported on implementation progress of FY2017 planned
activities on a quarterly and annual basis.
On a monthly basis, PSDAG Technical Grantee Focal Persons monitored and reported
on implementation of grant activities. These grant activity updates were used by PSDAG
to prepare FY2017 monthly progress reports to monitor performance against set
milestones and targets. Internal monthly progress reports were used to draw lessons
learned and appropriately adapt strategies to mitigate obstacles experienced in
implementation of planned activities. In addition, progress reports were used by PSDAG
to provide updates (on request) to stakeholders including USAID, GOR institutions, and
private sector partners.
As per contractual obligation, in Q1, PSDAG submitted its FY2016 Annual Progress
Report to USAID through the AIDTracker+ and FTFMS reporting platforms. In addition,
PSDAG submitted FY2016 Performance Plan Reports (PPRs) as part of the FY2016
annual reporting requirement. Furthermore, PSDAG prepared and submitted FY2017
Quarterly Progress Reports to USAID through the AIDTracker+ reporting platform. The
redacted versions of the reports were uploaded to the USAID Development Experience
Clearinghouse (DEC).
During Q3, PSDAG conducted an internal mid-year project review to reflect on progress
on implementation of planned activities and identify areas for improvement to meet
FY2017 annual indicator targets. The mid-term review identified priority areas relating to
the release of targeted RFAs under the FY2017 APS and the finalization of MOUs
between PSDAG and GOR (MINAGRI and RDB).
In fulfilment of the provision in Section 6 of PL 108-484, the Microenterprise Results and
Accountability Act of 2004, PSDAG submitted the 2016 Microenterprise Results
Reporting (MRR)27 in response to USAID partner data call in Q2.
2.1.3 CAPACITY BUILDING FOR PRIVATE SECTOR PARTNERS
PSDAG helped newly signed grantees establish M&E systems for monitoring and
reporting on grant activities. PSDAG M&E team supported prospective private-sector
partners to set up realistic indicator targets as part of the grant negotiation process.
Subsequent to signing 16 new grant agreements with partners, PSDAG conducted M&E
orientation meetings with these new partners to help them understand data collection
and reporting requirements, tools, and timelines. For ongoing grant partnerships,
PSDAG Technical and M&E staff provided continuous backstopping to partners to
ensure proper documentation and reporting in compliance with grant agreement
milestones and deliverables.
2.1.4 USE OF ICT
ICT is an important part of PSDAG’s M&E system to facilitate ease in data collection and
reporting results of project activities implemented by various partners. During FY2017,
PSDAG’s partners continued to use Map and Track (a digital data collection system
27 www.mrr.usaid.gov
PAGE | 96 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
using iFormbuilder technology)28 to register farmers and cooperatives as well as submit
quarterly indicator results. In order to document and report outcomes of private sector
grant activities on job creation, PSDAG modified the quarterly reporting tools to include
number of new jobs created by project activities funded under grant agreement
mechanisms. Results on this new indicator were subsequently tracked and reported.
PSDAG has included the FTF indicator on jobs created (EG.3-9 - Number of Full-Time
Equivalent [FTE] jobs created with USG assistance) in FY2018 M&E plan.
For the new 16 private partners signed during FY2017, PSDAG provided tablets (as in-
kind grants), created Map and Track accounts, and trained them on use of the ICT
platform for data collection and reporting. The Map and Track ICT platform has a
functionality for use by PSDAG and private sector partners to collect GPS coordinates
which were used to generate ArcGis maps29 project interventions.
As discussed under Activity 21, four PCCs piloted use of ICT to digitize their processes
and transactions including farmer production forecasting, farmer profitability assessment,
farmer registration, purchases, and sales. To demonstrate the importance of using ICT
to collect and analyze data to drive decision making, PSDAG facilitated four seasonal
debrief meetings with PCCs participating in the pilot PCC digitization program. Based on
lessons from the pilot PCC digitization program, in FY2018 PSDAG plans to scale up
seasonal debriefs to other value chains to facilitate data and information sharing
between value chain actors in order to improve performance in agricultural value chains.
2.1.5 DATA QUALITY ASSESSMENT (DQA)
In Q4, PSDAG facilitated USAID to conduct DQA for indicator on “Number of agricultural
and nutritional enabling environment policies analyzed, consulted on, drafted or revised,
approved, and implemented with USG assistance.” Table 18 summarizes areas for
improvement on documentation and reporting of this indicator.
Table 18. DQA recommendations
Weakness Action to Address Weakness
Not substantive but need to cross check EIAs reports
A simplified clearance process with counterpart institutions (RDB and MINAGRI) on EIAs reports. This is to ensure that beneficiaries/partners GOR agencies are on board with PSDAG agenda and provide more credibility to EIAs reports.
Not substantive but need to further collection of data/results at the last step of the indicator
Relevant staff be given responsibilities and tools to collect follow-up GOR or Private sector interventions that could be influenced by PSDAG developed analysis or policy/strategy.
To improve the quality of data received from private partners, PSDAG also designed a
quarterly data verification tool, to be used to confirm with partners the accuracy and
completeness of reported data before aggregation and reporting to USAID. Data
verification will be conducted by PSDAG’s Technical Focal Persons and M&E team.
19 iFormBuilder, by Zerion Software, is a universal, cloud based mobile data collection platform helping customers around the globe collect data on their mobile devices. https://www.zerionsoftware.com/iformbuilder/. 20 For live map, visit http://arcg.is/2cpeuEx
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 97
2.2 SOCIAL INCLUSION
ACTIVITY 31: IMPROVING ACCESS TO BUSINESS OPPORTUNITIES FOR WOMEN, YOUTH, AND PEOPLE WITH DISABILITIES (PWD)
In May 2017, PSDAG published an RFA on Women, Youth, and PWDs in
Entrepreneurship and Leadership Program in Agriculture that was extended to close on
December 31, 2017. The objectives of this RFA are to 1) co-invest in projects that
facilitate investment in women, youth and/or PWD-managed enterprises; and 2) grow
employment opportunities (formal and informal) for these target groups.
Under this RFA, PSDAG will support activities that increase private investment in Agro-
SMEs, and agent or microfranchise30 models that increase agribusinesses and
leadership income-generating opportunities for women, youth, and PWDs. The RFA was
translated into Kinyarwanda and shared with 43 potential gender and social inclusion
stakeholders including public, private, and CSO institutions. It was also published online.
PSDAG conducted three Applicants Conferences (held May 31, June 19, and
September 29) to provide additional clarifications on the RFA in terms of eligibility, the
application process, and grant evaluation criteria.
As at end of FY2017, 29 applications had been received and are at various stages of the
grantee selection process (evaluation of applications, oral presentations, and pre-award
assessments). The applications are being evaluated on bi-monthly basis and the first
batch of partners under this RFA is expected to be signed before end of FY2018 Q1.
ACTIVITY 32: DEVELOPING AND IMPLEMENTING SOCIAL INCLUSION STRATEGIES
PSDAG implemented the Gender and Social Inclusion Integration Plan, which was
developed in FY2016. During FY2017, PSDAG recruited an international service
provider to develop a Gender and Social Inclusion (GSI) curriculum, and train local
service providers to implement it with PSDAG partners. The goal is to build the capacity
of companies to develop social inclusion strategies, embed them in their business
models and value chain activities, and understand both the business and social impact
of businesses on women, youth, and PWDs.
There was progress on implementation of GSI curriculum. During Q2, two local service
providers (LSPs) were competitively contracted by PSDAG and trained on the GSI
curriculum content and methodology. Subsequently, during Q3, the two LSPs trained 17
people (6 women) from 12 PSDAG private-sector partners on the GSI curriculum. During
Q4, the LSPs conducted coaching and mentorship of private sector partners on
developing GSI strategies within their business models. Eleven private partners were
coached including Agasaro Organic, INES – Ruhengeri, Shekina Enterprise,
Ltd, Green Harvest Ltd, PEBEC, and N-Frnds. PSDAG will continue to monitor progress
21 Microfranchising is a business model that adapts a traditional franchising approach for very small businesses. It is a systemized approach to replicating micro-enterprises that sells products or services, enabling entrepreneurs to
become microfranchisees in proven businesses without having to make high upfront investments.
PAGE | 98 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
and outcomes of implementation of these social inclusion plans. During FY2018,
PSDAG will continue support to partners in the implementation of GSI plans.
PSDAG team also introduced the GSI mainstreaming approach in the BDS and QMS
training modules to be delivered to 60 cooperatives under the CPP (see Activity 21).
BDS and QMS service providers were also sensitized on GSI concepts, practices, and
approaches. As the service providers conduct various BDS and QMS trainings (to be
rolled out in Q1 FY2017), they will raise awareness against discrimination perpetrated
against women, youth, and PWDs in cooperatives.
ACTIVITY 33: INTERNSHIP PROGRAM FOR YOUTH, WOMEN, AND PWD IN AGRIBUSINESS
PSDAG and the USAID Huguka Dukore (HD) project implemented by Education
Development Center (EDC) have identified potential areas of collaboration to create
opportunities for participation of youth, women, and PWDs in agribusiness. Under an
MOU mechanism that is being finalized, PSDAG and HD projects will work to promote
effective collaboration and interactions to sustainably facilitate youth inclusion in
agricultural value chains by the private sector partners of both projects.
In addition, PSDAG conducted consultations with Capacity Development and
Employment Services Board (CESB)—formerly the National Capacity Building
Secretariat—and MINAGRI to explore opportunities for collaboration to link youth with
opportunities in the agriculture sector. PSDAG plans to leverage the existing partnership
between CESB and MINAGRI to place graduate
interns at cooperatives to help local farmers to
improve productivity. RYAF is implementing the
internship program at MINAGRI. Under this existing
internship implemented by RYAF, CESB will pay a
stipend of RWF 50,000 per month for 12 months for
each intern. MINAGRI expressed willingness to
partner with PSDAG so that some of the interns can
be placed at PSDAG partners (private firms and
cooperatives). The Commitment Letter to formalize
this partnership is under development. PSDAG has
begun to conduct an assessment with partners
(firms and cooperatives) to establish the number and
qualifications of required interns.
Under this envisaged partnership with
MINAGRI/RYAF and CESB, PSDAG proposes to
develop a capacity building package for the interns.
Using a subcontractor, PSDAG will help interns
understand their roles/responsibilities and acquire
basics skills in entrepreneurship and work
readiness. In addition, PSDAG will facilitate M&E on
the performance of interns. Samples of USAID-branded materials
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 99
2.2 COMMUNICATION
2.2.1 MARKING AND BRANDING
During FY2017, PSDAG continued to implement USAID marking and branding
guidelines for ongoing as well as new project activities under different partnership
mechanisms (grant agreements and MOUs). PSDAG produced and used USAID-
branded materials (signage, stickers, T-shirts, caps, and fleece jackets) to brand project
activities. PSDAG also ensured use of USAID branding in project events and activities
such as grant launch events, learning events, and MOU/grant signing ceremonies.
In addition, new infographics were developed for the PSDAG project materials including
the FY2017 Project Brief and 2017 APS. Subsequently, PSDAG produced 2,700 Project
Briefs both in Kinyarwanda and English, and distributed them to stakeholders including
development partners, private sector associations, cooperative associations, and GOR
institutions. These briefs provide an overview of project objectives, implementation
strategy, and partnership opportunities through grant agreements or MOUs.
PSDAG Project Brief
2.2.2 MEDIA COVERAGE
During FY2017, PSDAG engaged various media outlets to ensure coverage of PSDAG
activities including project launch events and partnership signing ceremonies. PSDAG
issued press releases and shared them with media outlets to ensure proper visibility and
communication of PSDAG activities in newspapers, local radio stations, magazines, and
social media. Annex VII summarizes the extent to which PSDAG activities were covered
by the media. In addition, PSDAG continued to post PSDAG activities in social media
through PSDAG’s official Twitter account.31 which currently has over 270 Twitter
followers including MINAGRI, MINECOFIN, NAEB, IFAD, FAO, Drones for Agriculture,
and other notable key sector players.
22 See https://twitter.com/psdag_rwanda
PAGE | 100 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
2.2.3 SUCCESS STORIES
PSDAG continued to track implementation of grantee activities with the aim of
showcasing the effect, outcome, and impact of PSDAG investments on firms,
cooperatives, and smallholder farmers. During FY2017, PSDAG prepared seven
success stories as presented in Table 19.
Table 19. Summary of Success Stories in FY2017 Partner Project Activity Value Chain Title of Success Story
Planikap PCC Upgrading of potato
aggregation and value
addition, and digitization of
transaction processes
Irish potatoes ICT Transforming Potato
Collection Center (PCC)
Business in Rwanda
Shekina Enterprises Processing of cassava leaves
for export
Horticulture USAID Support to Shekina
Enterprises has doubled
Rwanda’s Exports of Cassava
Leaves
Abakundana Cooperative Post-harvest handling
technologies
Maize USAID Assistance Empowers
Farmer Group to Grow and
Thrive
Kigali Farms High value mushroom &
substrate production for export
& household nutrition
Horticulture In Musanze District, a Social
Enterprise with a Hunger for
Change
Tuzamurane Cooperative Production and processing of
organic pineapple for export
Horticulture Pineapples, a Sweet Success
for Empowering Women in
Rwanda
Samples PSDAG tweets
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 101
Partner Project Activity Value Chain Title of Success Story
New Tech Reaps Big Rewards
for Rwandan Pineapple Farmers
Masaka Creamery Development of innovative
dairy processor
Dairy Creamery Empowers Rwandan
Deaf Community Through
Inclusive Business Model
See Annex VIII for PSDAG success stories
recorded in FY2017.
A success story from PSDAG’s partnership with
a private-sector aggregator of maize and beans
bought from smallholder farmers, was also
featured in the Feed the Future Newsletter for
May 18, 2017.32
In addition, PSDAG completed the procurement
of a service provider for audiovisual
documentation of project activities. The
audiovisual materials will include quality
educational professional films, photographs,
interactive infographics, video clips, and short
documentaries tailored to different audiences
highlighting the impact of USAID support through the PSDAG project. The service
provider has started to develop audiovisual materials from PSDAG accomplishments on
Objective 1 and 2 activities which are expected to be complete in FY2018 Q1.
2.3 CAPACITY BUILDING AND KNOWLEDGE MANAGEMENT
2.3.1 PSDAG STAFF CAPACITY BUILDING
PSDAG continued to conduct staff capacity building training to impart required skills and
knowledge for implementation of FY2017 Work Plan activities and improve on
performance management.
During Q1, PSDAG conducted a staff kick-off meeting for FY2017 Work Plan in
Bugesera District. The purpose of the meeting was to help PSDAG staff understand and
internalize planned activities and expected outputs and outcomes during FY2017.
PSDAG also conducted an internal all-staff training on November 29, 2016, on Code of
Ethics, procurement, grants, marking and branding, and report writing.
In Q2 and Q3, PSDAG conducted a refresher training on grants to reorient technical staff
on grants processes and tools to ensure compliance with the approved grants manual.
Objective 2 and Grants teams also attended a three-day training workshop on market
facilitation approaches, and value chain systems and dynamics.
Farm promoters and MCC representatives on the use of ICT and access to weather information
122 people (29 women)
2.4 ENVIRONMENTAL COMPLIANCE
During FY2017, PSDAG continued to implement the Environmental Mitigation Monitoring
Plan (EMMP) by conducting environmental
assessments for all grant applications and
preparing Environmental Review Reports
(ERRs) for new selected project activities.
PSDAG prepared 26 ERRs for shortlisted grant
activities. The ERRs are used to identify
activities that require monitoring and reporting of
environment mitigation measures.
In addition, PSDAG continued to monitor
environmental compliance of ongoing project
activities implemented by private partners.
Annex XIII includes a summary of environmental
mitigation monitoring of project activities under
various partnerships.
As per the SUAP, PSDAG finalized development
and translation of five infographics for Safe
Pesticide Use (SPU) best-practices “info-packs” as follows:
• Info-pack 1: Disposing of empty pesticide containers
• Info-pack 2: How to use personal protective equipment
• Info-pack 3: What time to spray crops
• Info-pack 4: How to spray
• Info-pack 5: How to safely store pesticides
PSDAG is finalizing the “info-packs” to incorporate comments and inputs from the
Agriculture Communication and Information Program at MINAGRI. During FY2018,
PSDAG will train partners on use of these SPU “info-packs” as well as distribute copies
SPU “info-pack” on Disposing of Empty
Pesticide Containers
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 105
to private firms and cooperatives through other partners such as the USAID Hinga Weze
project.
PAGE | 106 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
3. PARTNERSHIPS AND LINKAGES 3.1 USAID COMMUNITY HEALTH AND IMPROVED NUTRITION
(CHAIN) PARTNERS
During Q1 and Q2, PSDAG continued to participate in CHAIN collaborative activities to
ensure collaboration with CHAIN implementing partners. PSDAG shared partnership
opportunities for SMEs and cooperatives with CHAIN partners. During FY2017, PSDAG
circulated RFAs contained in the FY2017 Annual Program Statement including
Cooperative Professionalization (see Activity 21), Women and Youth Leadership &
Entrepreneurship Program (see Activity31) and Asset Financing (see Activity 22). In
addition, as part of the due diligence process to avoid duplication of funding to the same
activities, PSDAG shared information about private sector partners that have been
selected for grant funding with all USAID projects including CHAIN partners.
During Q3, USAID de-categorized PSDAG from USAID projects under CHAIN partners.
However, PSDAG continued to collaborate with CIP, which had submitted a project
proposal to PSDAG under the 2016 APS to implement a project activity on “Evaluation
and selection of disease resistant potato varieties with good processing qualities for
Rwanda.” This grant application from CIP is in the final stages of USAID approval and is
expected be implemented in FY2018. PSDAG also met with Harvest Plus and the CIP
Orange Flesh Sweet Potato project to review the 2017 RFAs and encourage them to
share the applications with their strong cooperative and SME partners; as of Q4 PSDAG
had not received any applications. Two Harvest Plus cooperatives, however, are
participating in the PSDAG Cooperative Professionalization activity and receiving BDS
support to sell directly to FarmFresh.
3.2 WORLD FOOD PROGRAM (WFP)
PSDAG collaborated with the WFP to ensure cooperatives supply maize and beans
under the FAMA project. PSDAG supported 33 maize cooperatives that supply the WFP
under FAMA, to co-invest in post-harvest handling equipment such as shellers, weighing
scales, pallets, and packaging bags. During Q3, reports on outcomes of support to the
34 supported cooperatives included: $867,546 in income for 9,786 (4,690 women)
smallholder maize farmers and $902,449 in domestic sales of value added maize.
Progress of PSDAG’s partnership with WFP are discussed under Activity 20 – 2017
Grants to Maize Cooperatives.
3.3 MINAGRI/ RCA/NCCR/COOPERATIVE DEVELOPMENT PROGRAM
PSDAG collaborated with MINAGRI, the World Bank/IFC, RCA, and NAEB to incorporate an additional Pillar IV on Professionalization of Cooperatives into the NAIPS. The collaboration with these partners entailed conducting meetings and workshops with
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 107
stakeholders to review NAIPS in light of the proposed Pillar IV and subsequently presenting a revised NAIPS (with Pillar IV) to MINAGRI, donor stakeholders, and the Agribusiness Cluster of the ASWG for validation (see Activity 1).
3.4 WORLD BANK AND THE UK DEPARTMENT FOR INTERNATIONAL DEVELOPMENT (DFID)
During FY2017, PSDAG was selected to be a part of the Nucleus of Developing
Partners to assist MINAGRI with the development of PSTA-IV. PSDAG worked
collaboratively with representatives from the World Bank and DFID to design and
implement the Knowledge Seminar in Q2. Throughout Q3 and Q4, PSDAG continued to
collaborate with these partners to provide feedback and ensure that private sector
engagement is adequately embedded in the new strategy (see Activity 1).
3.5 DFID PROJECTS IN SUPPORT OF MINAGRI
DFID launched two projects in FY2016 to support MINAGRI. The first, the Agriculture
Technical Assistance Facility (Agri-TAF), is supporting MINAGRI to complete its online
management information system (MIS) and to improve on the mainstreaming of gender,
climate-smart agriculture, and nutrition into MINAGRI’s programming to meet PSTA-III33
requirements. During FY2016, PSDAG consulted with Agri-TAF representatives and
agreed to collaborate on 1) linking the MIS to ALIS, and 2) sharing experience and data
gathered after implementing various social inclusion activities. In addition, the MIS
system supported by Agri-TAF is part of the SAIS project, for which MINAGRI, with
PSDAG support, secured a GOR budget allocation for FY2017/2018 to FY 2023/2024
(see Activity 1).
The second DFID project, Improving Market Systems for Agriculture in Rwanda (IMSAR)
has a similar mandate to that of PSDAG’s Objective 2, in that is seeks to provide market
facilitation support to the agriculture private sector in the form of technical assistance,
grants, and equity. PSDAG has begun collaborative partnerships with the IMSAR
program in the areas of access to equity and working capital for SMEs working in similar
value chains that PSDAG is supporting. The equity portion of the project, implemented
through AgDevCo, is up and running and PSDAG has begun to link its partners for
access to equity financing.
3.6 GIZ
Over the past few years, GIZ has been supporting RDB and PSF in piloting and
implementing PPD at the local level and national level. In FY2016, PSDAG worked
closely with this team to ensure that PSDAG was complementing rather than duplicating
the years of work that GIZ has successfully completed. As GIZ does not have a mandate
to focus on the agriculture sector, the work of PSDAG is indeed complementary, and the
draft PPD framework to be used was based on the GIZ model.
24 Strategic Plan for the Transformation of Agriculture, phase three.
PAGE | 108 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
In FY2017, PSDAG continued to collaborate and consult with GIZ as the project
embarked on piloting the local and national Agri-PPD forums. In addition, for GIZ’s
newest phase of programming (June FY2016 to May FY2018), the organization began to
work with RDB on investment promotion support for the tourism, ICT, creative industry
(e.g. film), and wood products sectors. While these do not directly cross over to the
agriculture sector, some interventions like capacity building in investment promotion best
practices will require that the two projects continue to collaborate closely.
3.7 TRADEMARK EAST AFRICA
TradeMark East Africa (TMEA) is a not-for-profit established in 2010 to support the
growth of trade in East Africa. In Rwanda, TMEA is focused on improving physical
access to markets, investing in storage for grains and horticulture, improving quality
standards, and enhancing public-private dialogue. In the past, TMEA has worked with
PSF to establish national PPD platforms based on topics (such as tax issues), helped
develop the RPPDS, and provided extensive training to PSF staff in policy advocacy.
During FY2017, PSDAG continued to collaborate and consult with TMEA while working
with PSF/RCAL and RDB to pilot national and local PPD for agriculture. Specifically,
TMEA shared information with PSDAG on its activities to strengthen other PSF
chambers. This collaboration helped streamline the scope of technical assistance
provided by PSDAG to PSF under the MOU partnership and grant for institutional
strengthening partnership (see Activities 10 and 12).
In FY2018, PSDAG will meet with representatives from TMEA to identify opportunities
for PSDAG partners to leverage TMEA resources, including new marketing and
aggregation facilities. Additionally, PSDAG’s capacity building programs might be
appropriate for strengthening the agribusiness capacity of different stakeholders involved
with TMEA’s Trade and Logistics Hub.
3.8 ACCESS FINANCE RWANDA (AFR)
AFR partners with financial service providers to innovate and deliver products and
services that will create a positive and sustainable impact on the lives of the poor. Its
goal is to develop sustainable improvements in livelihoods through reduced vulnerability
to shocks, increased incomes, and employment creation.
PSDAG consults with AFR when partnering with financial institutions to ensure it is
complementing and not duplicating efforts. In Q1 of FY2017, PSDAG collaborated with
AFR to co-host an agriculture insurance roundtable workshop attended by public
institutions, private sector actors, and development partners. From this workshop,
MINECOFIN and MINAGRI formed an Agriculture Insurance Working Group to design a
National Agriculture Insurance scheme that will provide affordable crop insurance.
In addition, PSDAG agreed to provide technical input to AFR, MINAGRI, and
MINECOFIN in support of the consultancy that AFR will procure to complete an initial
design and study for a National Agriculture Insurance scheme. Based on the results of
this study, PSDAG will support the implementation of this scheme, particularly in
engaging private partners to provide input and roll out the insurance products through
distribution models.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 109
PSDAG is also collaborating with AFR to build upon its support to Ugunka and
Umutanguha MFIs by sharing its cash flow tool and information on target value chains to
improve the analysis that is the basis for new agriculture loan products. PSDAG is
supporting these MFIs in accessing refinancing facilities in Year 4.
3.9 CLINTON DEVELOPMENT INITIATIVE (CDI)
PSDAG collaborated with the CDI to provide technical assistance to six maize
cooperatives under contract to sell 3,000 t of maize to the African Improved Food (AIF)
program. PSDAG, through a service provider (Sarura), provided technical assistance to
these cooperatives in QMS—sorting, grading and managing the quality of their maize at
aggregation points (see Activity 21).
3.10 KENYA COMMERCIAL BANK (KCB) RWANDA
PSDAG signed an MOU with KCB Rwanda to create a formal mechanism for partnership
between the two institutions with the objective of increasing access to finance to the
project partners. Under this partnership, PSDAG will provide technical support on skills
and knowledge in lending to agriculture sector to KCB’s agriculture department staff. In
addition, PSDAG will provide technical assistance support to KCB on cash flow training
as well as developing irrigation and mechanization products. The technical assistance
will help in designing asset-based financial products and other value chain financing
products to selected financial institutions including BRD, KCB, Duterimbere, Atlantis
Microfinance, and Bank ok Kigali. Progress of this partnership with KCB is discussed
under Activity 29.
3.11 USAID CLIMATE SERVICES FOR AGRICULTURE PROJECT
The USAID Climate Services for Agriculture Project, implemented by CIAT, participated
in the PSDAG/AFR Agriculture Insurance Event in Q1 of FY2017, providing a
presentation and contributing to the discussion on how current rainfall data is supporting
agriculture insurance and its limitations.
PSDAG also entered into a new partnership with N-Frnds in collaboration with CIAT to
increase the efficiency and productivity of the entire smallholder agricultural value chain
in Rwanda by making ICT accessible and affordable to all agricultural value chain actors.
Under this partnership, within the framework of the MOU between MINAGRI and N-
Frnds, the USAID Climate Services for Agriculture Project will help generate and share
(through N-Frnds ICT platform) climate-related information to farmers and PSDAG
private sector partners (see Activity 24). In addition, PSDAG collaborated with CIAT to
get access to additional agriculture weather information that will be used in ALIS 2 (see
Activity 1).
3.12 USAID HD PROJECT
The HD project is implemented by EDC in collaboration with other partners (Catholic
Relief Services, Akazi Kanoze Access, Souktel, Taking IT Global, and Connexus) with
the aim of imparting 40,000 youth (15–30 years old who have reached primary grade 6
PAGE | 110 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
but dropped out before attaining primary 9) with employability and entrepreneurship
skills in 19 districts of Rwanda.
PSDAG initiated discussions with the USAID HD project implemented by EDC to partner
and collaborate to on youth inclusion activities under an MOU mechanism. Under this
proposed MOU partnership, PSDAG and the HD project will collaborate to sustainably
facilitate youth inclusion in agricultural value chains by the private sector partners of both
projects. A draft MOU has been developed and discussed between PSDAG and HD.
However, subsequent consultations have been initiated with CESB (formerly the
National Capacity Building Secretariat) and Rwanda Youth in Agribusiness Forum
(RYAF) to identify specific areas of leverage in the implementation of the MOU to link
youth with opportunities in the agriculture sector. The MOU between PSDAG and HD is
expected to be finalized and signed during Q1 FY2018.
3.13 HINGA WEZE
The Feed the Future Rwanda Hinga Weze project seeks to sustainably increase
smallholder farmers’ income, improve nutritional status of Rwandan women and
children, and increase the resilience of the agriculture and food systems to the changing
climate. During FY2017, PSDAG conducted consultations with Hinga Weze to explore
areas of collaboration in implementation of FY18 Work Plan Activities. PSDAG expects
to collaborate with Hinga Weze to facilitate private investments to upgrade agricultural
value chains either through provision of extension services or support for accessing
finance.
3.14 EAST AFRICA TRADE AND INVESTMENT HUB (EATIH)
EATIH works to boost trade and investment with and within East Africa. The goal of the
EATIH is to deepen regional integration, increase the competitiveness of select regional
agriculture value chains, promote two-way trade with the US under the African Growth
and Opportunity Act (AGOA), and facilitate investment and technology that drives trade
growth intra-regionally and to global markets. During FY2017, PSDAG began hosting the
EATIH Country Representative in the PSDAG offices. During FY18 work planning
process, PSDAG identified areas of collaboration with EATIH, specifically in building the
capacity of RDB in investment promotion, supporting PSDAG partners to access new
markets, and providing technical and financial support to help companies obtain
certifications required to access domestic and international markets.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 111
ANNEXES ANNEX I: PRIVATE SECTOR FACILITATION BY PSDAG EIA AT
MINAGRI
[REDACTED]
PAGE | 112 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
ANNEX II: MINAGRI FLAGSHIP PROJECT TRACKER FY2017
[REDACTED]
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 113
ANNEX III: PRIVATE SECTOR FACILITATION BY PSDAG EIA AT RDB
[REDACTED]
PAGE | 114 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
ANNEX IV: PRIVATE PARTNERSHIPS IDENTIFIED THROUGH 2015 REQUEST FOR APPLICATIONS (RFA)
[REDACTED]
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 115
ANNEX V: PRIVATE PARTNERSHIPS IDENTIFIED THROUGH 2016 ANNUAL PROGRAM STATEMENT
[REDACTED]
PAGE | 116 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
USAID Launches Partnership to Increase Rwandan Agriculture Financing by 320 Billion RWF
KIGALI – On February 10, 2017, the United States Agency for International Development (USAID) funded Private Sector Driven
Agriculture Growth project (PSDAG) and the Development Bank of Rwanda (BRD) signed a memorandum of understanding to increase
agriculture financing in Rwanda. Through the agreement, BRD has reserved roughly 140 billion Rwandan Francs for loans to finance
agricultural mechanization, modernization, and processing technologies. BRD has reserved an additional 180 billion Rwandan Francs to
assist the export sector, including agricultural exports. Together the investment totals more than 320 billion Rwandan Francs.
The partnership between BRD and USAID—which was developed through USAID’s Private Sector Driven Agriculture Growth project—
will strengthen agricultural lending practices in Rwanda, and will provide a boost for the entire agricultural sector. USAID’s Private Sector
Driven Agriculture Growth Project will provide technical assistance to BRD staff and its partners as a contribution to achieving the national
objective of increasing agriculture financing. Increased access to loans and other financing will create more investment by farmers and
agribusinesses, and stronger market opportunities for small scale farmers.
BRD will use these funds for many purposes, including providing low-rate, affordable loans for small scale farmers through microfinance
institutions and community cooperatives. BRD will also finance commercial projects in livestock, fish, and feed production, and offer
financial guarantees for export and agriculture investments. In addition, BRD will help bankroll projects in high-value crop and seed
production, and more.
“We are grateful for this partnership with USAID, which is a timely boost to the Bank’s efforts of financing development and modernization
of the agriculture sector. As we embark on increasing lending and access to financial services to the sector, it is essential to provide technical
support and capacity building to our staff and clients,” said Alex Kanyankole, Chief Executive Officer of BRD.
USAID/Rwanda’s acting Mission Director Leslie Marbury said, “we are delighted to partner with BRD to increase financing and leverage
private investments in the agriculture sector. Through this critical partnership, our support will expand markets, create more jobs
opportunities and increase incomes in rural populations.”
The Private Sector Driven Agricultural Growth (PSDAG) program is a five-year (2014-2019) project funded by the United States Agency for International
Development (USAID). The goal of PSDAG is to increase smallholder farmers’ incomes by promoting private sector investments and to facilitate the transformation
of agriculture into a market-oriented, competitive, and high-value sector. USAID PSDAG is the largest project in Rwanda under U.S. Government’s Global
Food Security Strategy. For more information, please visit. www.usaid.gov
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 117
With Cutting-Edge Drone Technology, USAID Supports Crop Monitoring for Small-scale Farmers December 7th, 2016
KIGALI – On December 7th, 2016, AgriLift Ltd launched an aerial drone to monitor crops for Irish Potato farmers in the Northern Province of Rwanda. The United States Agency for International Development (USAID), through its Private Sector Driven Agricultural Growth Project (PSDAG), is partnering with AgriLift to pilot the drone-based crop monitoring technology. It will serve 2,000 potato farmers affiliated with 20 potato cooperatives in the Imbaraga Cooperative Federation, located in Nyabihu, Burera and Musanze districts.
With USAID support, the drone takes overhead images of growing crops at specific intervals. Those images are then analyzed with an open-source computer model of plant growth, which was specifically developed for potato farms. The drone technology can identify the optimal maturity of potato plants for farmers, and can also spot nutrient deficient or diseased crops. AgriLift’s goal is to use this eye in the sky to provide local farmers and agribusinesses with rapid information on their crops, allowing them to take corrective measures almost immediately.
At the beginning of the September-January growing season AgriLift conducted its first drone test flights in Musanze. To date, 242 farmers’ plots from four cooperatives have been registered for flights, with 114 of these plots owned by female farmers.
Speaking at the launch, USAID Mission Director in Rwanda, Marcia Musisi-Nkambwe stated, “It’s our hope that this aerial monitoring technology will directly increase the income of small-scale Rwandan farmers. USAID is proud to be a significant partner in this achievement.”
While AgriLift will continue to demonstrate the valuable use of advanced crop monitoring for small-scale farmers, the benefits won’t stop there. The real-time Irish potato crop data is also a powerful analytical tool for private sector buyers, agricultural equipment dealers and financial services providers.
### The Private Sector Driven Agricultural Growth (PSDAG) program is a five-year (2014-2019) project funded by the United States Agency for International Development (USAID). The goal of PSDAG is to increase smallholder farmers’ incomes by
promoting private sector investment and to facilitate the transformation of agriculture into a market-oriented, competitive, and high-value sector. USAID PSDAG is the largest project in Rwanda under President Barack Obama’s Feed the Future Initiative.
For more information please visit. www.usaid.gov.
PAGE | 118 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
MINAGRI to Develop a New Strategic Plan to Transform the Agriculture Sector in Rwanda
KIGALI – On June 2nd 2017, the Ministry of Agriculture and Animal Resources (MINAGRI), conducted a workshop at the Lemigo Hotel to help craft the fourth Strategic Plan for the Transformation of Agriculture (PSTA IV). The new plan will serve as the nation’s primary blueprint for guiding public investment in Rwanda’s agriculture sector.
The workshop was held in partnership with the United States Agency for International Development’s (USAID) Private Sector Driven Agriculture Growth project; as well as the Private Sector Federation/Rwanda Chamber of Agriculture and Livestock (PSF/RCAL) and the United Nations Food and Agriculture Organization FAO through Rwanda Public Private Dialogue (RPPD) mechanism.
At the event, representatives of local agri-businesses and farmers from around the country discussed successes, lessons and challenges from the past five years, and developed recommendations for the new strategic plan. Participants also suggested key priority areas for consideration by the government.
"The success of this strategy (PSTA) in Pipeline will count more on its inclusiveness. we want all the sector's stakeholders to contribute to its elaboration, and furthermore be involved in its implementation with full knowledge of all its components." Said Kayisinga Jean Claude the Permanent secretary in the Ministry of Agriculture and Animal Resources
Pierre Munyura an AgriPPD farmer says that ‘Effective planning that has been demonstrated during PSTAIV formulation will result in strengthen the Agri-PPD forums across the country and the issues that affect them he hopes will be captured in the PSTAIV document. He continues to say that PSTAIV should also design strategies to interest the youth to engaging in agriculture through education’
In general, the PSTA IV will focus on attracting and expanding private sector investment in the agriculture sector. In doing so, the new strategic plan aims to further advance the Government of Rwanda’s goal of achieving an annual growth rate of at least 8.5% in the agricultural sector.
Information from the workshop will be consolidated with other feedback gathered from non-government organizations, civil society organizations, development partners, and international experts. PSTA IV will be finalized by December 2017, and will take effect in June 2018.
“The Private Sector Federation always supports all policies that aim at improving the business environment in the country, this is therefore an opportunity for farmers to influence business reforms through this dialogue,” says Donatien MUNGWARAREBA, Ag. Chief Advocacy Officer in PSF.
The Private Sector Driven Agricultural Growth (PSDAG) program is a five-year (2014-2019) project funded by the United States Agency for International Development (USAID). The goal of PSDAG is to increase smallholder farmers’ incomes by promoting private sector investments and to facilitate the transformation of agriculture into a market-oriented, competitive, and high-value sector. For more information, please visit. www.usaid.gov.
###
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 119
With Cutting-Edge Drone Technology, USAID Supports Crop Monitoring for Small-scale Farmers December 7th, 2016
KIGALI – On December 7th, 2016, AgriLift Ltd launched an aerial drone to monitor crops for Irish Potato farmers in the Northern Province of Rwanda. The United States Agency for International Development (USAID), through its Private Sector Driven Agricultural Growth Project (PSDAG), is partnering with AgriLift to pilot the drone-based crop monitoring technology. It will serve 2,000 potato farmers affiliated with 20 potato cooperatives in the Imbaraga Cooperative Federation, located in Nyabihu, Burera and Musanze districts.
With USAID support, the drone takes overhead images of growing crops at specific intervals. Those images are then analyzed with an open-source computer model of plant growth, which was specifically developed for potato farms. The drone technology can identify the optimal maturity of potato plants for farmers, and can also spot nutrient deficient or diseased crops. AgriLift’s goal is to use this eye in the sky to provide local farmers and agribusinesses with rapid information on their crops, allowing them to take corrective measures almost immediately.
At the beginning of the September-January growing season AgriLift conducted its first drone test flights in Musanze. To date, 242 farmers’ plots from four cooperatives have been registered for flights, with 114 of these plots owned by female farmers.
Speaking at the launch, USAID Mission Director in Rwanda, Marcia Musisi-Nkambwe stated, “It’s our hope that this aerial monitoring technology will directly increase the income of small-scale Rwandan farmers. USAID is proud to be a significant partner in this achievement.”
While AgriLift will continue to demonstrate the valuable use of advanced crop monitoring for small-scale farmers, the benefits won’t stop there. The real-time Irish potato crop data is also a powerful analytical tool for private sector buyers, agricultural equipment dealers and financial services providers.
The Private Sector Driven Agricultural Growth (PSDAG) program is a five-year (2014-2019) project funded by the United States Agency for International Development (USAID). The goal of PSDAG is to increase smallholder farmers’ incomes by promoting private sector investments and to facilitate the transformation of agriculture into a market-oriented, competitive, and high-value sector. USAID PSDAG is the largest project in Rwanda under the Feed the Future Initiative. For more information, please visit. www.usaid.gov.
###
PAGE | 120 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
ANNEX VII: MEDIA COVERAGE OF PSDAG ACTIVITIES
Project activity Title of Press
Release Media Link to press coverage
Launch of AgriLift grant
USAID Assists Smallholder Farmers
in the Northern Province of Rwanda with a new advanced
crop monitoring technology for Irish
Potatoes.
The New Times http://www.newtimes.co.rw/section/article/2016-
Beranbe Uwiringiyimana (second right) buying potatoes from a farmer using Farmbook ICT platform on a dital weighing scale-part of PSDAG support.
Barnabe Uwiringiyimana is a 25-year-old youth employed by Planikap Potato Collection Center (PCC) in Rubavu District as an accountant. He recounts how USAID and PSDAG Farmbook ICT Platform enabled the PCC to digitize and simplify its key potato supply chain activities, which included supplier profiling, seasonal production/supply estimates, pre- and post-season profitability assessment support to suppliers, as well as inventory management. The platform also allows the PCC to track key business performance indicators such as daily purchases and sales via a dashboard report function. USAID through PSDAG, facilitated upgrading of 17 PCCs through co-investment in post-harvest and handling equipment such as weighing scales, bagging materials, pallets, basins, tables, chairs and bookkeeping records. In addition, select PCCs were selected to pilot a program to use ICT to digitalize its processes. The Planikap PCCs has reported an improvement of its turnaround time per client - from one hour to 15 minutes per farmer. The PCC has used the digital platform to register information pertaining to all of their suppliers, such as product produce weight, grades and price per kilogram. In addition, the platform automatically calculates and processes payment information, including deducting all outstanding loan balances for the supplier. Barnabe said that in the past two seasons, it had been a very difficult and time-consuming to plan and manage supply chain activities, as well as buying potatoes from the supplier using manual paper-based methods. For example, in 2016 Season B, the average turnaround time to buy potatoes from a single farmer was one hour, meaning that the PCC could only serve an average of 8 – 10 farmers per day. The manual, paper-based buying and selling method was also associated with numerous mathematical errors, which led to disagreements between suppliers and buyers. The time-consuming nature of the process also contributed to business social exclusion, as elderly people and people with disabilities could not wait for long periods of time. Women also reported lower participation because time spent waiting at the PCC interfered with other household responsibilities, including caretaking. ‘We are now serving up to 50 farmers per day, thereby enabling us to buy even up to 80 tons of potatoes per day. Our PCC business has improved so much, as has trust from our suppliers. Our supplier base has grown to 398 farmers, compared to 92 in previous seasons,’ said Barnabe. Because of the success of the ICT platform used by Planikap, 14 other business companies in the community including agro-dealers, potato seed traders and grocery retailers have shown interest in adopting the digital system to improve their competitiveness.
The Farmbook ICT platform is helping to increase supply chain visibility, transparency in business transactions, as well as operations efficiency for PLANIKAP Potato Collection Center (PCC) in Rubavu District
ICT Transforming Potato Collection Center (PCC) Business in Rwanda
‘“The Farmbook ICT platform has enabled us to fully digitize and
simplify our key potato supply chain activities. Data and
information is now also readily available to our PCC to make better
and informed business decisions, thereby enabling us to offer the
best value to our potato suppliers and buyers.’’
- Barnabe
Uwiringiyimana
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 123
USAID Support to Shekina Enterprises has doubled Rwanda’s Exports of Cassava Leaves Shekina Enterprises is a premier exporter of processed cassava
leaves popularly known as Isombe. It is based in its native district
of Rulindo. Pierre Damien Batezimana founded the company in
2007 primarily to add value to fresh cassava leaves, previously
considered to have no commercial benefit to farmers. ‘‘One
evening, I met a group of sullen-looking women throwing away Isombe
from their mud-baskets to which they sadly told me they failed to get
a buyer interested in taking in cassava leaves, even at the lowest
possible price’’, Damien said. Processing of cassava leaves has
traditionally been conducted solely for household consumption
and activities are therefore dominated by women.
Shekina began with a handful of suppliers, buying the fresh
produce from local farmers and then processing and packaging
the leaves into an ‘instant’ product for export to a diaspora
market in the U.S.A. Shekina was producing[REDACTED]MT for
export per year, but buyers were asking for [REDACTED]MT.
The company lacked the necessary infrastructure to increase
production. USAID, through the Private Sector Driven
Agricultural Growth project, partnered with Shekina Enterprises
to increase its buying and processing capacity. As a result, Shekina
has tremendously improved the business model and is able to
produce [REDACTED] MT for export.
‘‘To us, this is good business we are edging closer to closing the
production-demand supply shortage for our export market,’’ says
Damien.
‘‘We have been astounded at how Isombe is liked on the market
especially the export market; today we export to USA, Canada, Belgium
France, and Netherlands.’’ says Romain Murenzi, the deputy
Managing Director in charge of Production Division.
The company boasts of working with more than [REDACTED]
farmers, including [REDACTED] women. These farmers are
organized in Isombe Collection Centers (ICCs) to collect and
aggregate cassava leaves from suppliers. Investments in the
organization of the supply chain and improved processing
technology have resulted not only in an increase in the amount
the company can buy from suppliers, but have reduced overhead
costs and electricity costs.
‘‘Our business growth prospects are brighter ahead, and we look
forward to increasing our investments and expanding the factory.’’
Damien concludes.
‘’We have been astounded at how Isombe is liked on the market
especially the export market, today we export to USA, Canada,
Belgium France, and Netherlands. With USAID support we hope
PAGE | 124 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
April 3, 2017
Top: Joseph in his cooperative’s cassava seed plantation in Kayonza district at
Rwinkwavu.
Bottom: Abakundana Cooperative members shelling their maize with machines
bought through a USAID grant.
In 2003, 45-year-old Mwunvaneza Emmanuel developed an urge to join a farmer group. Despite being known as a model farmer, Emmanuel had realized he could not support his family financially. A firm believer in strength in numbers – even when it comes to business matters -- Emmanuel had realized he could not support his family financially if he continued to work his one-hectare plot on his own. He felt that, by working together, he and other farmers in Kayonza district could better attract large maize buyers and improve their financial wellbeing.
Emmanuel joined the Abakundana ‘Itsinda’ – what was then considered a farmers’ association – with high hopes. But he soon found that a lack of modern processing equipment and appropriate storage facilities hindered the group’s success. Maize shelling was conducted manually, using hired manpower. In the end, the shelled maize was of poor quality. As a result, he experienced crop losses, which translated to financial losses.
In 2016, the Abakundana, by then a maize cooperative, received a grant from Minimex Maize, one of Rwanda’s largest processors and among the top three buyers of local maize in the country. The grant, facilitated by the USAID/Rwanda Private Sector Driven Agricultural Growth Project, helped improve farmers’ post-harvest drying, processing, and storage and helped Abakundana become one of the company’s suppliers of quality maize.
“Being a member of Abakundana never paid off for me until 2016, when the cooperative acquired a modern maize shelling machine,” Emmanuel says. “Last season shelled 1 t of my maize in record time. Before, it cost me RWF 12,000 and took one month to shell 1 t of maize using hired labor. Now, it costs RWF 7,000 RWF to shell the same amount in only 2-3 hours,’’ he said, beaming. “With the shelling machine, I get quality maize that draws a high price, and I now have a ready market through our relationship with Minimex Maize.”
Joseph Nkurukiyimana, Abakundana’s president, says that the Minimex grant, combined with skills gained through USAID-funded post-harvest handling training, have created a total savings of over RWF 90,000 for the cooperative. He says that while the cooperative is led by a man, female members outnumber the men, and have prospered thanks to training and support provided through the cooperative.
‘’Our farmers were happy that our cooperative was selected as a grant beneficiary, which encouraged us to be more optimistic and improve our way of doing business,” Nkurukiyimana says. ‘’Despite the drought that hit Kayonza in the last maize season, we have still seen our revenues improve from our shelling business, which is made possible through support from USAID. We expanded the service of using our shelling machine to the nearby maize growers and have so far shelled over [REDACTED] MT of maize, fetching over RWF [REDACTED].”
Empowered by its recent success, the cooperative is branching out, leasing land for seed multiplication of a cassava strain that is resistant to the hazardous cassava mosaic virus.
“The demand is phenomenal; farmers have already booked almost the whole field,” Nkurukiyimana says. “From our leased land of 2.5 ha, we look forward to fetching over RWF [REDACTED] per ha from selling cassava seeds,” he adds happily.
Increased mechanization and training provided through USAID allow the Abakundana Cooperative in Kayonza-Rwinkwavu to usher in farmers’ prosperity, empowerment and market linkages.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 125
Top: Ngarukiye Leonard, a participating wheat farmer, threshing his wheat harvest at
one of Kigali Farms’ strageically located collection centers., Musanze District.
Bottom: Farmers in action -- threshing their wheat harvest using a thresher bought
with USAID funding
By better linking actors throughout the mushroom value chain, Kigali Farms is helping reduce post-harvest losses, increase grain quality, and alleviate physical and time demands for farmers in Musanze District.
In Musanze District, a Social Enterprise with a Hunger for Change
Kigali Farms is a social enterprise in Musanze district that uses a socially conscious business model to help lift poor smallholder mushroom famers out of poverty. The company has placed mushrooms at the center of its business based on the food’s high nutritional values, high yields, potential for export, minimal land-space requirements, and ability to grow without good soils – that is, if organic layers or “substrates” are placed on the ground where the mushrooms grow.
Kigali Farms initially started out growing oyster mushrooms that could be easily grown by local farmers, providing a boost to the local economy while fostering a profitable business for the company. Then, in 2016, Kigali Farms teamed up with the USAID/Rwanda Private Sector Driven Agricultural Growth Project (PSDAG) to dramatically expand its business into mushroom substrate production, which allows the company to reach further across the mushroom value chain and help even more smallholder farmers increase their incomes. That is because the substrate required to effectively grow high-quality mushrooms is made from two other sources: wheat and chicken manure.
Using a grant provided through USAID, Kigali Farms purchased a mechanized thresher that helps separate wheat grain from the straw, a process necessary to creating the right substrate to support optimal mushroom production. In addition, the company strategically placed the threshing machines in collection centers near farmers’ fields where they can conveniently come to thresh their wheat, be paid for their wheat straw on the spot, and then walk away with high-quality wheat grain to sell in local markets. In March 2017 alone, 40 farmers took advantage of this service, which enabled Kigali Farms to collect 37 t of straw needed for its substrate while producers threshed 53 t of wheat grain for their own sale. This win-win arrangement has helped local wheat farmers earn extra income and has helped offset the 5 percent losses they would have experienced had they used traditional manual wheat threshing methods, which can crush wheat grains. These savings translated to an estimated 2.65 t of wheat for the farmers, valued at RwF [REDACTED] (RwF [REDACTED] / kg).
Venantie Nyirahabimana, a 49-year-old wheat farmer, was amazed at how the threshing machine had relieved her of the processing burden. “Winnowing one 100-kg bag would take me five hours,” she says. “We now have wheat grain that comes out of the threshing machine totally clean with no dust and less physical damage than if it was manually done; with this quality wheat grain, we hope to fetch higher prices at the market.”
“We now have wheat grain that comes out of the threshing
machine totally clean with no dust and wheat grains have less
physical damage than if it was manually done; with this quality
wheat grain, we hope to fetch higher prices at the market’’
PAGE | 126 PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
June 30, 2017
Above: Tereza Nyirantozi’s cow, which she bought from proceeds made from selling her pineapples through the Tuzamurane Cooperative.
Lower left: Tereza Nyirantozi tends to her pineapple plants. Lower right: A sign marks Tereza Nyirantozi’s organic-certfied field where she exclusively grows pineapples.
“It’s a beautiful thing when you are financially independent,”
says Tereza Nyirantozi, a 60-year-old pineapple famer in
Rwanda’s Kirehe district. To Nyirantozi, joining the
Tuzamurane pineapple processing cooperative has not only
meant an increase in income—it has served as an affirmation
of her power as a woman.
Years ago, Nyirantozi and her husband chose two different
professional paths; he chose to grow bananas while she
decided to undertake pineapple farming. Nyirantozi’s bet on
pineapples paid off. Today, she is a model farmer, as well as a
supplier and part owner of the Tuzamurane Cooperative.
“To me, the pineapple business is a miracle,” she says. “I can
hardly explain all that it has brought into my life. It
transformed how I operate, my lifestyle, and my rights as a
woman. In fact, I look forward to venturing into other
investments like buying a motorcycle that will facilitate
transportation for me and my husband while we go about our
daily work routines.”
With support from the USAID/Rwanda Private Sector Driven
Agricultural Growth (PSDAG) project funded through Feed
the Future, the Tuzamurane Cooperative has been able to
provide members like Nyirantozi with access to credit, as
well as personalized agricultural extension services in areas
such as post-harvest handling. Previously, she sold her
pineapples for $0.02 per kilogram (kg), but by 2016, when the
increase in the cooperative’s marketing created more
demand for her product, Nyirantozi sold her produce for
eight times more—$0.16 per kg.
Her newfound success has helped Nyirantozi boost her
income to more than $[REDACTED]over the last quarter
alone, as well as expand her certified farming field, purchase
a new cow—which also serves as an inexpensive source of
organic fertilizer—and send her son to school. She has even
been approached by her neighbors expressing interest in
joining her cooperative. “I think they are drawn into joining
Tuzamurane after seeing what I have achieved from my
pineapple growing,” she says.
“My husband never worries about money scarcity because I
am self-reliant,” she adds proudly. “Women were considered
less able people to do anything tangible, but now I am an
inspiration to so many. They come often seeking my advice
on how to do what I have achieved.”
Commercial pineapple growing in Kirehe district has ushered in farmers’ prosperity, empowered women, and linked farmers to international markets.
PINEAPPLES, A SWEET SUCCESS FOR EMPOWERING WOMEN IN RWANDA
‘‘To me, the pineapple business is a miracle. I can hardly explain all that it has brought into my life. It transformed how I operate, my lifestyle, and my rights as a woman. In fact, I look forward to venturing into other investments like buying a motorcycle that will facilitate transportation for me and my husband.‘’
—Tereza Nyirantozi, pineapple farmer and cooperative member in [REDACTED] District
Partner Title of activity Activity site (District) ERR determination Mitigation measures Status of implementation during FYT7
AgriLift
Advanced Crop Monitoring for Smallholder Irish Potato Farmers
[REDACTED] Categorical exclusion
Only AgriLift to seek authorization from competent body each time they plan to fly over the potatoes fields
Flights for June/July 2017 authorized by Rwanda Civil Aviation Authority. One crop monitoring flight was conducted. AGRILIFT submitted to PSDAG a certificate of registration issued by Rwanda Civil Aviation Authority as RPAS 008/2016 of July 28, 2017.
ENAS Kirehe Grain Storage Facility
[REDACTED] Negative determination with conditions
Construction permit required
ENAS got construction permit from Kirehe District to constrict the foundation for the silos. Environmental Impact Assessment (EIA) was conducted and an investment clearance issued to ENAS by RDB.
Hollanda Fair Foods (HFF)
Manufacturing potato chips for a competitive potato sub-sector in Rwanda and beyond
[REDACTED] Negative determination with condition
The premises they are renting were constructed without an EIA. HFF is selling the used cooking oil to local community. PSDAG advised HFF to seek advice from Rwanda Standards Board related to food safety of the used cooking oil
HFF participated into a workshop facilitated by FAO on agro-enterprises sustainability. Subsequently, HFF is looking to formalize business partnership with a regular waste cooking oil collector (women cooperative). Under this formal contract arrangement, the women cooperative would buy 600 litres of waste oil for use in soap production.
Kigali Farms
Mushrooms: a high-value vegetable crop for export and nutrition
[REDACTED] Negative determination with conditions
The company has obtained both an approved EIA from RDB and construction permit. The company is currently providing services for threshing wheat to farmers to produce wheat straw which is used as substrate for button mushroom production.
The company plans to use potential project waste from greenhouses into compost and sell it to farmers for agricultural related activities. To control pests in mushroom growing rooms, Kigali Farms uses Formaldehyde to treat/ prevent Trichoderma disease. The company also uses sticking traps in each growing room for button mushrooms to attract and catch flies, a good integrated pest management (IPM) approach vis-a-vis use of pesticides.
PAGE | 136PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Partner Title of activity Activity site (District) ERR determination Mitigation measures Status of implementation during FYT7
Farmers are harvesting wheat by uprooting instead of cutting stem.
Workers at mushroom production plant in Musanze wear personal protective equipment (overall gown, gum boots, head cover, gloves, and regular mouth cover). But there are no masks to prevent eventual irritation caused by Formaldehyde. Project closed.
Sarura
Supporting maize and beans farmers’ access to high value Rwanda and regional markets through establishment of crops aggregation centers in Eastern and Southern Province, Rwanda
[REDACTED] Categorical exclusion
Sarura sometimes do apply residual pesticides or fumigants to contrail weevils in the stored commodities (beans and maize)
Project closed.
Potato Collection Centres (17)
Potatoes aggregation, sales and washing.Farmbook suite
[REDACTED] Categorical exclusion
All PCCs are to undertake potatoes aggregation, and sales. Out of 17, 11 PCCs were set to undertake value addition though potatoes washing or brushing. These 11 PCCs agreed with PSDAG to dig pit for disposal of water waste. No value addition operations have so far taken place.
No potato washing so far undertaken by supported PCCs.Farmers supplying the PCCs apply Dithane M 45/ Mancozeb and Rhidomil to control diseases. However, the number of spraying is extremely high. Spraying is done weekly and even two times during a week. Farmers spray thiodan to control aphids.Farmers have basic knowledge on use of pesticides but little on disposal of empty pesticides containers except the metallic ones that are collected for recycling. Level of use of personal protective equipment remains low (average 40%). Farmers in Burera District reported using a residual pesticide which is currently banned in Rwanda but outsourced from unknown sources.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 137
Partner Title of activity Activity site (District) ERR determination Mitigation measures Status of implementation during FYT7
Farm Fresh
Processed precooked beans for the middle-class consumer
[REDACTED]
Negative determination(s) with conditions* (After environmental review, activities determined to have no significant adverse impacts, given specified mitigation and monitoring*).
The packaging material used by Farm Fresh are made of flexible laminates (PET/AL/CPP) which are 100% biodegradable.
Farm Fresh contracted a professional rubbish collection company with experience to partner specifically with companies and do collect the processing waste from Farm Fresh facilities on weekly basis
PEBEC
Farming and export of chili pepper, Variety “Birds eye Chili”.
[REDACTED]
Negative determination(s) with conditions* (After environmental review, activities determined to have no significant adverse impacts, given specified mitigation and monitoring*).
Fumigation to be undertaken by a pesticide spraying service with well trained technicians
Two fumigations were conducted by Agrotech, a local company specialized in import and distribution of agrochemicals. The company has well trained staff in charge of fumigation services. The fumigated commodity is dried eye bird chili for export stored in cocoons at PEBEC site in Nyarugunga sub locality of Kicukiro District. Changed service provider from Agrotech to Afrochem for fumigation services. During April-June, 4 containers of 6 t each were fumigated using phosphine.Fumigant is provided by the spraying service provider.Exports of dried eye bird chili is extended to the Netherlands.
Shekina
Strengthening Cassava Leaves Value Chain in Rulindo District
[REDACTED] Categorical exclusion
The supplier of fire wood cuts trees upon permit for harvest issued by the District
Shekina has started operating the equipment purchased with PSDAG support. They outsource cassava leaves from 5 women's cooperatives. Cassava leaves are produced organically with no pesticides. Currently, an average annual cost of RWF 20 million for fire wood consumption is incurred by Shekina while re-using waste from cassava leaves is potentially higher source of renewable energy. Shekina is considering investing in greening their processing plant by investing in
PAGE | 138PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Partner Title of activity Activity site (District) ERR determination Mitigation measures Status of implementation during FYT7
sustainable energy. The company has drafted a proposal for briquettes production from cassava steam waste and is in process of mobilizing funds to support this greening initiative. Shekina has acquired special permission from REMA to use plastic lining into regular packaging material for new products 'Domiano instant beef cassava leaves’, developed with PSDAG support.
INES
Increasing the quantity and quality in potato seeds value chain in Northern & Southern Provinces of Rwanda
Categorical exclusion
No mitigation measures are recommended. However, once production in screen houses takes place, workers should wear PPE especially when handling pesticides to control diseases
INES has constructed the screen house and production of mini tubers has started. Seed production related activities will all take place within protected and controlled environment (laboratory and greenhouses) and have no direct connection with outside environment. There exists a disposal system for waste generated from laboratory consumables.
Tuzamurane Cooperative
Dried Organic pineapples
Categorical exclusion
No mitigation measures are recommended
Tuzamurane is certified organic and required not to use pesticides in its production processes. The certificate was renewed in January 2017 for one year by international certifying body 'Control Union".
Agroplast Manufacturing of net bags for potatoes
[REDACTED]
Negative determination(s) with conditions* (After environmental review, activities determined to have no significant adverse impacts, given specified mitigation and monitoring*).
Agroplast was issued by RDB an Environmental Impact Assessment certificate on March 16, 2016 for the construction and operation of plastic factory recycling with the objective to produce plastic items such as the net bags, tubing, sheeting, trash bags & fencing nets. It reads
The company was recommended to relocate its current activity site to Gahanga economic zone also in Kicukiro sector. The company got construction permit for the plot in Gahanga Economic Zone Recycling is still taking place at the initial site as the company is still working on utilities to be developed by the City of Kigali such as water, electricity and road access. Agroplast has organized plastic collection centres around the city and
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 139
Partner Title of activity Activity site (District) ERR determination Mitigation measures Status of implementation during FYT7
"the Environmental Assessment Statement (EIS) has been submitted in accordance with the laws and regulations related to the requirements and procedures for environmental assessment in Rwanda and has been reviewed and found to have sufficient and relevant mitigation measures to the identified likely impacts of the project on the environment".
have engaged business partnerships with four collectors. The net sacks produced through plastic recycling will be used to pack potatoes and vegetables such as onions. The company will mainly use harvested rain water to wash collected plastic prior to its processing. They plan to construct a processing water recycling system for reuse cutting down factory operation costs.
E & Foods
Empowering smallholder Vegetables Farmers through access to Market and new technologies
[REDACTED] Categorical exclusion / Very low risk
Water for use in irrigation site from Rwanda Water and Sanitation Corporation water supply pipe and stored in water tank with the volume of 5m3.
The company has started irrigation and green house production activities including with outgrower farmers.
Norlega
Improving the supply and the quality of macadamia nuts
[REDACTED] Categorical exclusion / Very low risk
Suppliers of fire wood to harvest trees upon permission by local authorities
Norlega used 50 t of fire wood as biofuel and also produced 50 kg of briquettes. NORELGA plans to substitute briquettes to the use of fire wood. The company has identified talented stoves makers in Uganda and Kenya and negotiations are underway to enable Norlega produce stoves for briquettes use at the factory and at household level targeting neighbouring communities.This innovative initiative is a good element in promotion of greening agro-processing enterprises in Rwanda. By substituting briquettes for firewood, Norlega will contribute to the reduction of greenhouse gases and reduce the pressure on forests.
PAGE | 140PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Partner Title of activity Activity site (District) ERR determination Mitigation measures Status of implementation during FYT7
Masaka Creamery
Development of Innovative Dairy Processor
[REDACTED] Categorical exclusion / Very low risk
The proposed activity site is in Gasabo District. The applicant got a construction permit issued by the District for the laboratories and factory extension. Rain water to be harvested and stored in a tank but they do also use piped water from WASAC. They have a domestic sewage system where waste water is disposed. Once they start processing cheese, waste products will use as feed for pigs.
Milk processing wastes are channelled in existing sewage system.
Ndiyo Chips Ndiyo Chips upgrading project
[REDACTED] Categorical exclusion / Very low risk
Packaging material that will be used should be 100% biodegradable, unless the company has received a waiver from REMA. Used cooking oil will be used as fuel for the new generator that is being purchased by the company. There is a nearby swamp and there is a risk of waste water/ sewage slippage into that swamp.
An Environmental Clearance Letter No RDB/EC/110/02/17 of February 27, 2017 was issued by RDB to NDIYO Chips Group. The company is looking into relocating the plant in the economic zone to benefit from GOR incentives with the new tariffs on utilities such as electricity. The company purchased a soap making machine that will be used to process used oil into soap.
Green Harvest
Automate and Conformity Certification of SABANA for International market
Categorical exclusion / Very low risk
The grantee will acquire required renovation/construction permits. The water is available at the project site and it is being supplied from WASAC. No huge waste anticipated to be generated from this
Instead of renovating the current premises, Green Harvest shifted to construction of new premise in Marembe/ Rulindo District Following another environmental screening conducted on Marembe site, the company was asked to regularize compliance for construction permit with Rulindo District and have RDB/REMA
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 141
Partner Title of activity Activity site (District) ERR determination Mitigation measures Status of implementation during FYT7
activity. However, the grantee has concluded arrangements with company specialized in garbage collection and disposal on weekly basis from processing plant.
conduct an environmental impact assessment for investment clearance.
Agasaro Organic Ltd
Extension of pineapple processing factory
[REDACTED] Categorical exclusion / Very low risk
The processing wastes made exclusively of organic matters are to be disposed into a pit for composting.
The company is planning to make expansion of the factory. An Environmental Impact Assessment certificate was issued by RDB on July 22, 2016 (No RDB/3/EC/089/07/2016) for the proposed expansion and operation of a pineapple processing factory to be established on plot 2312 in Nyanza cell, Bushekeri sector, Nyamasheke District.
Green Systems Africa
More Maize Per Drop (MMPD
[REDACTED] Categorical exclusion / Very low risk
Following consultations with RDB/EIA, Green Systems Ltd made the decision to only use Gashora WASAC water for their demo plot not exceeding 1 ha.If required, future EIA applications will be made by the land owners (cooperatives or individual farmers).In the case of the project's demo plot, Green Systems is using it to support its services (marketing and capacity building) to farmers.For the duration of the grant activity, the demo plot is made available to Green Systems Ltd by
At early stage of project implementation
PAGE | 142PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016–SEPT 30, 2017 | PRIVILEGED AND CONFIDENTIAL
Partner Title of activity Activity site (District) ERR determination Mitigation measures Status of implementation during FYT7
Bugesera Agri Business Company Ltd.
N-Frnds
N-Frnds Mobile Agriculture ICT Platform and Young Entrepreneurs
[REDACTED] Categorical exclusion / Very low risk
N/A N/A
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 143
ANNEX XIV: MAP OF PSDAG PROJECT INTERVENTIONS [REDACTED]
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 144
ANNEX XV: PSDAG Memorandum and Understanding - KCB
[REDACTED]
PRIVILEDGED AND CONFIDENTIAL
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 145
ANNEX XVI: PSDAG Memorandum and Understanding - BRD
• [REDACTED]
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 146
ANNEX XVII: PSDAG Memorandum and Understanding - PSF
[REDACTED]
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 147
ANNEX XVIII: PSDAG Memorandum and Understanding – KUMWE Logistics
[REDACTED]
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 148
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 149
ANNEX XIX: PSDAG Memorandum and Understanding – RDB
[REDACTED]
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 150
ANNEX I: Activities for FY2017/FY2018
Planned activities include the following: 1. Improve Investment Promotion Activities and Marketing Materials and
2. The Development of Agriculture Investment Handbook
3. The Development of Agriculture Investment Databank
4. Land Profiling for Commercial Farming
Detailed scopes of work and project descriptions are included in subsequent annexes
RDB staff may also be asked to participate and provide feedback during other activities, such as:
1. The National Agribusiness Strategy, Implementation and Capacity Building 2. Agriculture Land Information System – Phase 1 and Phase 2 3. Agriculture Land Use and Management Guidelines 4. Evidence-Based Policy Analysis 5. Piloting of National and District-Level PPD Processes
6. Supporting the Rwanda Public Private Dialogue Secretariat
7. Investment Opportunity Analysis
8. Capacity Building Assessment
9. Implementation of Capacity Building Plans
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 151
Annex II: Scope of Work – Investment Promotion Specialist for 1. Improve Investment Promotion Activities and Marketing Materials Title: Investment Promotion Specialist Estimated LOE: 120 days; July 2017, up to September 2018 Location of Service: Kigali, Rwanda with travel to the field as needed General Background: Rwanda Private Sector Driven Agricultural Growth Project (PSDAG) is a five-year Feed the Future project funded by USAID and implemented by International Resources Group, a subsidiary to Research Triangle Institute. The project was created in line with Government of Rwanda (GOR) targets and aims to develop a strategic partnership between the Rwandan public and private sectors to improve the conditions for investment mobilization and to create more economic opportunity for smallholder farmers through increased value chain market integration.The project’s principle objectives include: • Objective 1: Assisting the Government of Rwandan (GOR) to Attract and Increase
Private Sector Investment
• Objective 2: Facilitating Increased Private Sector Investment by Upgrading Agricultural Value Chains
Under Objective 1, PSDAG supports the Rwanda Development Board (RDB), the country’s primary Investment Promotion Agency (IPA) to improve strategy and implementation of attracting more private sector investment in the agriculture sector. In late 2016, PSDAG began negotiation with RDB on a Memorandum of Understanding (MOU). The proposed MOU requested the assistance with the following:
1. Improve Investment Promotion Activities and Marketing Materials and Activities 2. The Development of Agriculture Investment Handbook 3. The Development of Agriculture Investment Databank 4. Land Profiling for Commercial Farming
This scope of work deals specifically with #1, with some consultation on #2 and #3. Rationale: In 2012, the Rwanda Development Board (RDB) embarked on an exercise of creating investment opportunity profiles in each sector. In addition, a roadmap for agribusiness investment facilitation and process was developed. The roadmap details the agriculture investment process from the perspective of RDB, mapping processes, information gathering, evaluation, decision to invest, implementation and aftercare. During the process over 19 investment opportunities were identified and eight turnaround programs developed. In addition to these profiles, four specific business plan (cases) were also developed. However, the information related to these opportunities which is provided on promotion materials such as pagers and others is outdated and unrealistic while some opportunities could have been taken by investors and as such these are not valuable for investment attraction. The following 19 investment opportunities were profiled in 2012 and are still displayed on RDB website: Investment Opportunities
1. High value Horticulture processing
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 152
2. Kigali Whole Sale Market(KWSM)
3. Investment Opportunities in Essential oils, Potato processing, Avocado export, Beans processing, Fertilizer distribution, Coffee, Tea, High value Horticulture processing
4. Soya bean production
5. Maize production and processing
6. Meat processing
7. Wheat production and processing
8. Rice production and processing
9. Seed production
10. Irrigation and Mechanization projects
11. Coffee: production, washing, roasting and packaging
12. Green fields for tea production and processing focusing on speciality tea
13. Sugar cane production and processing
14. Fishery, aquaculture and animal feed production
15. Floriculture
16. Dairy processing
17. Silk development
18. Stevia production and processing
19. Honey production and processing
The eight turnaround programs that were developed included the following:
The four business cases developed included the following:
1. Bean Processing for Export, 2. Power Tiller Assembly Plant, 3. Rwanda Fertilizer Import and Distribution and 4. Rwanda Avocado Packaging and Export.
Since 2012 there has been no update made to these investment profiles even though some opportunities could have been taken or new ones emerged. Additionally, for the last five years, feedback from potential investors about the existing profiles was that the market
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 153
and investment opportunity presented was too general for a specific commodity or subsector. As such the profiles were not useful as they lacked some key data and information on the sub-sector or the commodity industry and the available data was outdated. It is now well known that Rwanda offers a conducive business environment and has consistently ranked high on The World Bank’s ‘Doing Business’ reports. In the last few years, RDB has therefore been mostly reactive to increasing requests by interested investors. RDB is therefore interested in improving both its investment promotion targeting strategy and the information provided that is more useful for attracting investors. Updated information will then be included in a Rwanda Agriculture Investment Handbook (a separate project supported by PSDAG.) RDB proposes to engage PSDAG and GOR institutional partners, the Ministry of Agriculture and Animal Resources (MINAGRI), the National Agriculture Export Board (NAEB), and the Ministry of Trade, Industry and EAC Affairs (MINEACOM) in a collaborative effort to gather the necessary information and prepare new materials. It is intended that support from PSDAG would provide mentorship and guidance in this process. PSDAG would design at least one promotional material that would then be used as a model. RDB staff would develop any remaining materials.
Objective: The purpose of this consultancy is to provide support to the PSDAG project to assist RDB and other relevant GOR ministries and agencies in enhancing and formalizing a proactive, targeted investment promotion strategy framework, with specific investment promotion activities for a final short-list of attractive investment opportunities, including the identification of each investment opportunity’s unique value proposition for potential investors (i.e., level of attraction).The consultancy will assist RDB with the development of one set of promotion materials for one identified and improved investment opportunity, and provide mentorship to RDB in the development of any remaining opportunities through September 2018.
Specific Tasks: The Investment Promotion Specialist will be responsible for leading and implementing the following activities in support of PSDAG:
1. Finalize joint project Action Plan with RDB for the implementation of the agreed upon activities in the MOU.
2. (Optional) Conduct short working sessions meant to develop collaboration in proactive investment promotion methodology and practical activities for representatives of the RDB, MINAGRI, NAEB, (MINEACOM optional), and other relevant stakeholders. This should build upon previous training and capacity building already implemented by other developing partners.
3. Facilitate the development of a joint action plan between GOR stakeholders to contribute to the investment promotion strategy development processes, identifying clear roles and responsibilities for each relevant stakeholder.
4. Facilitate the compilation of all available macroeconomic, legal, market, and trade statistics and data covering the current lists of agricultural investment opportunities, turnaround programs, and business cases currently being promoted by RDB (Note: if the statistics and data are not available, the Consultant should collaborate with
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 154
GOR representatives to collect the data through brief surveys or interviews with relevant public and/or private stakeholders or use proxy data).
5. Conduct a working group with GOR stakeholders to assess and sort the compiled data to identify gaps, outstanding needs, and create a working dataset for analysing and benchmarking the attractiveness of specific investment opportunities.
6. Based on current market data and trends, advise and support GOR stakeholders in creating a short-list of agricultural investment opportunities or attractive agricultural sectors and sub-sectors, which will subsequently be benchmarked and assessed to determine their unique value propositions
7. Facilitate and support GOR stakeholders in conducting benchmarking analyses of key cost and revenue drivers related to the short-listed investment opportunities through comparisons with the same drivers in comparator and competitor countries to identify and gauge the opportunities’ level of attraction to different investors and to inform the development of unique value proposition.
8. Advise and support GOR stakeholders on the formulation of a final list of investment opportunities to promote proactively within a customized, targeted investment promotion strategy.
9. Facilitate and support GOR stakeholders on developing specific action plans and promotional strategies for each of the final investment opportunities.
10. Facilitate and support GOR stakeholders in creating clear profiles of potential investors and creating targeted lists of firms, business associations, and individuals for outreach purposed for each of the final investment opportunities.
11. Support and provide direct leadership in developing at least one set of promotional materials, with continued support and advice to GOR stakeholders in completing promotional materials for all remaining investment opportunities.
12. Following the initial program development stage, provide ongoing support and advise to GOR stakeholders in the implementation of the investment promotion strategies, making recommendations on any revisions, updates, and/or modifications to the investment promotion strategies and/or promotional materials.
13. Provide mentorship and ongoing consultation to PSDAG and GOR representatives in implementing the investment promotion strategies and development of additional promotional materials.
14. Advise PSDAG and other consultants on content and implementation of the Rwanda Agriculture Investment Handbook and Databank.
15. Other tasks as assigned by the PSDAG Chief of Party. Illustrative Deliverables and Timeline:
for GOR stakeholders’ investment promotion methodology.
PowerPoint slides and brief report on agreed upon methodology to be.
2-3 weeks after the assignment begins
2. Brief report on the GOR’s joint action plan to promote agricultural investments.
Word document outlining the agreed upon roles and responsibilities of stakeholders.
1-2 months after the assignment begins
3. Report on results of the benchmarking analysis.
Word document outlining the results of the benchmarking analysis with
2-3 months after the
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 155
competitor and comparator countries.
assignment begins
4. Report on individual promotional strategies for specific investment opportunities.
Word document outlining the promotional strategies to be implemented by the GOR.
3-4 months after the assignment begins
5. At least one promotional material for a specific investment opportunity.
PDF document(s) of the promotion material developed for one investment opportunity
4 months after the assignment begins
6. Trip reports Word document outlining the support, advice, and/or training provided to PSDAG or GOR representatives during each trip conducted within this assignment.
1 week following each trip to Kigali
Note that as the consultant gathers information and feedback to carry out this assignment, specific tasks may change, subject to approval by the PSDAG Chief of Party. Minimum Qualifications
• Post Graduate (Masters or PhD) qualification in business and investment, economic development, economics, agribusiness, or other related fields;
• Not less than 10 years’ international experience, especially in investment promotion and facilitation in the agriculture sector in developing countries;
• Significant experience in business coaching and mentorship;
• Excellent understanding of value chain issues, abilities to seize business opportunities from the identified weaknesses in the value chain especially in the agriculture, livestock and fisheries sectors.
• Knowledge of agricultural sector in Rwanda, a plus;
• Previous experience working with development partners such as the World Bank, the USAID, and other similar international reputable organizations, a plus.
• Fluency in English required; knowledge of French and Kinyarwanda will be an advantage
Supervision The Investment Promotion Specialist will work under the supervision of the PSDAG COP or her designee.
Annex III: Scope of Work – 2. Firm for The Development of Agriculture Investment Handbook
General Background: Rwanda Private Sector Driven Agricultural Growth (PSDAG) Project is a five year “Feed the Future” project funded by USAID and implemented by ENGILITY Corporation/IRG.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 156
The project was created in line with the Government of Rwanda (GoR) with the aim of developing a strategic partnership between the Rwandan public and private sectors to improve conditions for investment mobilization and to create more economic opportunities for smallholder farmers through increased value chain market integration.The project’s principal objectives include:
Objective 1: Assisting the GoR to attract and increase private sector investment; and Objective 2: Facilitating the increase of private sector investment by upgrading agricultural value chains.
The Ministry of Agriculture and Animal Resources (MINAGRI) of Rwanda, with the support from PSDAG, are actively seeking to improve agricultural investment processes, for both small and large scale agricultural investments. One of the key issues, however, is to clearly indicate to a potential investor the processes and institutions involved in the agriculture investment process. These processes include, but are not limited to registering for an investment certificate, accessing land on which to operate, and applying for environmental impact assessments.
PSDAG is therefore supporting MINAGRI to develop an Agriculture Investment Handbook, which will facilitate agricultural investment by. It will also show the various public entities that have a role to play in facilitating these investments. Such roles will be clearly defined, as well as the timelines within which the services should be rendered to the prospective investor.
Objective
PSDAG is requesting proposals from qualified, professional service providers for the provision of services to develop Rwanda’s Agriculture Investment Handbook. The Handbook is expected to show all key players in investment promotion, their roles in facilitating investment, as well as detailing all the processes that a prospective investor needs to go through before the actual investment takes root in Rwanda. It will also show all levies and fees (where necessary), how, why and where they are paid. In other words, the handbook will provide all relevant information that potential investors in the agriculture sector will need to make informed investment decisions and to assist them with solving issues that require government of Rwanda services.
Specific Tasks
The selected vendor will perform the following tasks in preparing the Agriculture Investment Handbook:
• Review the following documents, among other relevant ones:
• The Agribusiness Investment Facilitation Roadmap (2013), RDB
• The Agriculture Investment Handbook “Outline” prepared by MINAGRI’s Investment Support Unit (ISU)
• Simplification of Roadmap for Agribusiness Investment Facilitation (2015), PSDAG
• The Investment Promotion Information Package, RDB
• The Investors’ Guide, MINAGRI website
• The 2015 Investment Code
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 157
• The Business Registration Processes, RDB
• The draft Public Private Partnership law and processes and Privatization law and processes
• Other relevant documents and website information from MINAGRI, RDB, Ministry of Trade and East African Community Affairs (MINEACOM) and MINALOC
2. Prepare a draft Agriculture Investment Handbook, including content, layout, graphics and tables. 3. Share the draft document with PSDAG and other stakeholders for input. 4. Revise the draft document, incorporating stakeholder input. 5. Make recommendations, including best medium for publishing to the public (print, web, radio, etc.), how the information should be updated and by which institution and how agriculture investment promotion material can be harmonized across the major institutions involved. 6. Create guidelines and best practices for updating the information, which will be used by institutional staff. 7. Submit final draft and recommendations to PSDAG and other stakeholders for endorsement. 8. Build capacity of institutional staff identified to update information based on recommendations and guidelines developed.
Deliverables and Expected Timeline
Deliverable:
1. Agriculture Investment Handbook in editable Word format. Graphic and table files in their respective software formats.
2. Final report outlining successes and challenges, recommendations, and guidelines and best practices.
Timeline:
It is expected that the project will not exceed 6 weeks from inception. Offerors must submit a detailed project activity timeline.
Requirements:
IRG anticipates issuing a subcontract to an international or local company or organization that has the ability to fulfil minimum requirements and submit a complete proposal. While IRG will provide the Subcontractor with a letter of invitation, it will be the responsibility of the Subcontractor to obtain all related travel documentation such as visas, vaccinations, etc. To be considered eligible for consideration in response to this solicitation, the following criteria are considered essential.
a) Firms operating as commercial companies or other organizations or enterprises (including nonprofit organizations) in which foreign governments or their agents or agencies have a controlling interest are not eligible as suppliers of commodities and services.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 158
b) Must be a corporation registered in one of the following countries:
1) USA 2) Rwanda 3) One of the developing countries listed at
In addition to the above mandatory criteria, IRG also expects the Offeror to have the following profile:
a) Members of proposed project team responsible for the content of the handbook must have prior experience in business and investment promotion activities in Rwanda. Prior experience in agribusiness investment preferred;
b) Prior experience working with government of Rwanda institutions such as MINAGRI, RDB, MINICOM, MININFRA, and MINIRENA preferred.
c) Members of proposed project team responsible for graphic design must have prior experience in preparing similar documents such as professional project reports, books, journals or other related publications. This will be demonstrated by examples of the work done and references from clients.
d) Members of proposed project team must have relevant academic qualifications (e.g. Business Administration, Economics, Graphic Design, Journalism, Media Studies, Mass Communication or other related courses.
e) Members of proposed project team must speak, read, and write English fluently. French and Kinyarwanda a plus.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 159
Annex IV: Scope of Work – 3. Firm for the Development of Agriculture Investment Databank
General Background: Rwanda Private Sector Driven Agricultural Growth (PSDAG) Project is a five year “Feed the Future” project funded by USAID and implemented by International Resources Group, a subsidiary of Research Triangle Institute. The project was created in line with the Government of Rwanda (GOR) with the aim of developing a strategic partnership between the Rwandan public and private sectors to improve conditions for investment mobilization and to create more economic opportunities for smallholder farmers through increased value chain market integration.The project’s principal objectives include:
Objective 1: Assisting the GoR to attract and increase private sector investment; and Objective 2: Facilitating the increase of private sector investment by upgrading agricultural value chains. The Ministry of Agriculture and Animal Resources (MINAGRI) and the Rwanda Development Board (RDB) of Rwanda, with the support from PSDAG, are actively seeking to improve agricultural investment processes, for both small and large scale agricultural investments. Lack of accurate and easy to access data, such as local production and trade estimates, continues to be a constraint for potential investors in making informed investment decisions. Data collection for agriculture is conducted by several GOR institutions and some private and development organizations. Some institutions focus on macro data while others target micro data related to specific value chains. Sometimes these data contradict each other and it is increasingly becoming difficult to collect, analyse and consolidate data into meaningful figures to inform investors or decision makers. Therefore, creation of a central data bank which will house data from different institutions engaged in data collection will enable MINAGRI, RDB and other institutions that use agriculture data for different purposes to accomplish their duties. This will reduce the time it normally takes to collect data from different organizations thus increasing service delivery particularly investment promotion in RDB. PSDAG will support MINAGRI and RDB to create a central databank to facilitate agriculture investment activities.
Objective
PSDAG is requesting proposals from qualified, professional service providers for the provision of services to develop Rwanda’s Agriculture Databank that both archives and links to the most up to date agriculture data frequently sought by investors. Information accessible through the databank may include links to agriculture statistics, trade data, current policies and strategies, publicly available feasibility and value chain studies, and pipeline of current investment opportunities.The databank is intended to be available to the public through the relevant GOR websites, though institutions may reserve portions of the databank for internal use only at their discretion. It is intended that the lead GOR institution housing the databank will maintain it. The selected vendor or consultants will need to develop the sustainability and capacity building plan as part of their deliverables.
Specific Tasks
The selected vendor will perform the following tasks in preparing the Agriculture Investment Databank:
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 160
1. Consult GOR, developing partners, and institutions, such as the Private Sector Federation, and private sector businesses to gather a list of all data and documents that should be housed in a centralized databank that would be useful for agriculture investment purposes. An illustrative and minimum list of entities to consult is as follows:
• Ministry of Agriculture and Animal Resources (MINAGRI);
• The National Agriculture Export Board (NAEB);
• The Rwandan Development Board (NAEB);
• The National Institute of Statistics of Rwanda (NISR);
• The Ministry of Trade, Industry and EAC Affairs (MINEACOM);
• The Private Sector Federation (PSF);
2. Through consultation process, make recommendations for the core institution(s) that
will ‘own and manage’ the databank and ensure official buy-in of Sr. Management of the institution(s).
3. Prepare a draft design of the architecture and maintenance of the databank. Databank should be online and dynamic, integrating information from various sources that should be updated over time, and should utilize existing systems and human capital resources. Firms should propose technology options based on existing systems. A final design should consider the following, at a minimum:
• System development – include personnel and roles and responsibilities, system engineering life cycle activities, technology, support services and training.
• System maintenance - include personnel and roles and responsibilities, system engineering life cycle activities, technology, support services and training.
• Interoperability - the ability of two or more systems (or components of a system) to communicate and send/receive data via a common set of industrial standards supported by the interoperating systems without changes.
• Integration - the effort of putting together two or more systems (or components of a system) to work together as a unit to provide a specified function or service.
• Site/logistics information. • Capability - the ability of the procured items to perform or provide the specified
business operation functions to enable attainment of the specified business goals. It also considers underlying infrastructure dependencies.
• Cost effectiveness, including a bill of quantities • IT Security.
4. Validate draft design with USAID, PSDAG and other stakeholders. Revise the draft
design, incorporating stakeholder input. 5. Implement design plan, including development of databank and training of associated
personnel in development and maintenance. 6. Test beta versions of the databank with stakeholders. Based on feedback, implement
upgrades before official publishing. 7. Prepare interim reports at each stage. 8. Submit final report to PSDAG and other stakeholders for endorsement.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 161
Deliverables and Expected Timeline
Deliverable:
1. Agriculture Investment Databank design in editable Word format. Graphic and table files in their respective software formats.
2. Agriculture Investment Databank, tested and published online.
3. Final report outlining successes and challenges, recommendations, and guidelines and best practices.
Timeline:
It is expected that the project will not exceed three months from inception. Offerors must submit a detailed project activity timeline.
Requirements:
IRG anticipates issuing a subcontract to an international or local company or organization that has the ability to fulfill minimum requirements and submit a complete proposal. While IRG will provide the Subcontractor with a letter of invitation, it will be the responsibility of the Subcontractor to obtain all related travel documentation such as visas, vaccinations, etc.
To be considered eligible for consideration in response to this solicitation, the following criteria are considered essential.
1. Firms operating as commercial companies or other organizations or enterprises (including nonprofit organizations) in which foreign governments or their agents or agencies have a controlling interest are not eligible as suppliers of commodities and services.
2. Must be a corporation registered in one of the following countries:
a) USA b) Rwanda c) One of the developing countries listed at
In addition to the above mandatory criteria, IRG also expects the Offeror to have the following profile:
1. Members of proposed project team must have prior experience in developing management information or similar online databank systems;
2. Members of proposed project team must have relevant academic qualifications (e.g. software development, computer science, management information systems, programming);
3. Developer firm must have developed similar systems. This will be demonstrated by examples of the work done and references from clients.
4. Prior experience working with government of Rwanda institutions such as MINAGRI, RDB, MINEACOM,PSR preferred.
5. Members of proposed project team must speak, read, and write English fluently. French and Kinyarwanda a plus.
Annex V: Project Description - Land Profiling for Commercial Farming General Background:
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 162
Rwanda Private Sector Driven Agricultural Growth (PSDAG) Project is a five year “Feed the Future” project funded by USAID and implemented by International Resources Group, a subsidiary of Research Triangle Institute. The project was created in line with the Government of Rwanda (GOR) with the aim of developing a strategic partnership between the Rwandan public and private sectors to improve conditions for investment mobilization and to create more economic opportunities for smallholder farmers through increased value chain market integration.The project’s principal objectives include:
Objective 1: Assisting the GoR to attract and increase private sector investment; and Objective 2: Facilitating the increase of private sector investment by upgrading agricultural value chains.
The Ministry of Agriculture and Animal Resources (MINAGRI) and the Rwanda Development Board (RDB) of Rwanda, with the support from PSDAG, are actively seeking to improve agricultural investment processes, for both small and large scale agricultural investments.
1) Background
Rwanda is a small, landlocked country with a population of 11 million, projected to be 13 million by 2020. Agriculture is a key element of the economy of Rwanda, accounting for 33.3% of GDP in 2013. Land is a finite constraint, and the mountainous topography of the country means that there are only 1.5 million ha of available arable land. Agricultural land plots are very small (80% are less than 1 ha), and over 70% of agricultural land is either on hills or on the side of hills. Because about 80% of the population of Rwanda lives in rural areas and is engaged in agriculture to some extent, finding ways to increase agricultural productivity is seen as the key to reducing poverty. The government of Rwanda (GoR) has therefore made agricultural development a priority and allocated significant resources to improving productivity, expanding the livestock sector, promoting sustainable land management, and developing supply chains and value-added activities.
While the overall aim of Vision 2020 is to diversify economic activities, agriculture is still recognized as the backbone of Rwanda’s economy. Therefore, it follows that PSTA-3 goals are to transform Rwandan agriculture from a subsistence sector to a market-orientated, value-creating sector; and to grow as rapidly as possible in terms of both production and commercialization to increase rural income and reduce poverty.
The Rwanda Ministry of Agriculture and Animal Resources (MINAGRI) considers private investment in agriculture as one of the methods to achieve increased agricultural productivity, food security, and increased agricultural export production. Access to land for private investment is a primary barrier. MINAGRI is the custodian of all public marshlands set aside for agriculture. The ministry is also mandated to manage and monitor optimal use of all private land demarcated for agriculture. Over the past few years, agribusiness investors have found the process for finding both public and private land available for investment lengthy and therefore costly. At the same time MINAGRI has found it challenging to efficiently plan and monitor the progress of nation-wide public agricultural investments such as the Crop Intensification. Much geospatial information exists regarding publicly funded projects, but data resides in scattered sources and is not necessarily consolidated in a manner that makes planning efficient. In addition, gathering information to inform GoR monitoring of and emergency responses to the effects of climate change often involves costly and time-consuming physical verification trips to the field.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 163
2) Objective As a sector, agriculture is ideally suited for the application of GIS. Agriculture is an inherently geographical activity, based on spatial distribution, and the ability to visualise information makes it easier to interpret data that might otherwise be difficult to manage. Planning, implementing, monitoring and evaluating activities in the sector is dependent on accurate and up-to-date data and the application of GIS is ideally suited to these applications. It also facilitates effective communication of results and can enable the delivery of services to other government agencies, businesses and the general public.
With this in mind, MINAGRI developed a tool, the Agriculture Land Information System (ALIS), to access information regarding public and private land available for agricultural public planning and private investment opportunities. Specifically, the purpose for the development of the tool are to:
• Increase the amount of private sector investment in agriculture; • Optimize land use by private sector; • Consolidate existing data, improve data quality and accessibility; • Improve MINAGRI monitoring, planning, and response time.
3) The Innovation
The ALIS system consolidates existing geo-spatial and static data gathered by GoR regarding parcels demarcated for agriculture use into on back-end database. The system dynamically integrates other online databases currently held by other institutions such as the Rwanda Natural Resources Authority (RNRA), and the Ministry of Infrastructure (MININFRA). Select information is then published to an online, globally accessible platform called the Investor Application (see http://www.minagri.gov.rw/investorapp/). Through this application, investors can query the database to find parcels that meet minimum size, location, elevation, and/or land category parameters. A list of matching parcels is returned and a geospatial map from which layers of information regarding the parcel such as general soil type, land suitability, current land use, proximity to roads, water sources, warehouses and other infrastructure, and general agro-climatic conditions can then be displayed. Investors can narrow down their search to parcels that are appropriate to their proposed investment opportunity and send a request to the MINAGRI Investment Support Unit to inquire about the availability and process for leasing the land.
Beyond the applicability to potential investors’ needs, MINAGRI is able to use the database to visually display the locations of public investment projects (e.g. locations of warehouses, markets, roads, and irrigation and terracing projects) in relation to each other. The database is dynamic and should be updated and expanded as more relevant data becomes available. For example, in the next six months, data related to 6 million private agriculture parcels and historical climate data will be added to the back-end database. Additional applications, such as a MINAGRI Planning and Management Application, will be created that suit the data needs of specific users.
4) Results Achieved to Date
The Investor Application of ALIS was launched to the public in October 2016. So far, investors have found that time to locate information regarding appropriate public land available for lease has been greatly reduced. Because investors are able to access information quickly and narrow down search results, it also reduces transaction costs of
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 164
physically visiting potential sites. MINAGRI management has also seen the potential of the system to drastically improve their ability plan their own public investments.
That being said, there are upgrades to be made to improve the ease of use as well as the quality of information in the system. In the short to medium term, PSDAG will support MINAGRI to conduct the following:
i) Add information regarding private sector parcels demarcated for agriculture; ii) Link to improved weather information for agriculture; iii) Providing technical assistance to dynamically profile public agriculture land
available for lease or sublease; iv) Establish public and transparent Land Use and Management Guidelines - a
process for communicating public and private investment opportunities concerning agriculture land, something that currently does not formally exist.
ALIS and the related Investor Application will be used as a tool for MINAGRI to collaborate with the Rwandan Development Board (RDB) to locate blocks of commercially viable land for private sector investment. RDB, with the help of PSDAG, will work closely with MINAGRI, NAEB, and MINEACOM RDB under Activity #1, Improve Investment Promotion Activities and Marketing Materials, to generate new and improved investment opportunities to sell to a target market. Based on the nature of those investment opportunities (i.e. specific value chains or ancillary businesses), MINAGRI will use data from ALIS and the Investor Application to help RDB locate the blocks of commercially viable land that are suitable for those opportunities. Investment promotion and facilitation staff from RDB and MINAGRI’s Investment Support Unit will both be trained on how to use the information to support the investment promotion process.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 165
ANNEX VI: Scope of Work for RDB Embedded Investment Advisor
Title: Embedded Investment Advisor in Rwanda Development Board Estimated LOE: Long-term34 Location of Service: Kigali, Rwanda with travel to the field General Background: Rwanda Private Sector Driven Agricultural Growth Project (PSD-AG) is a five-year Feed the Future project funded by USAID and implemented by ENGILITY Corporation/IRG. The project was created in line with Government of Rwanda (GoR) targets and aims to develop a strategic partnership between the Rwandan public and private sectors to improve the conditions for investment mobilization and to create more economic opportunity for smallholder farmers through increased value chain market integration. The project’s principle objectives include:
• Objective 1: Assisting the Government of Rwandan (GoR) to Attract and Increase Private Sector Investment
• Objective 2: Facilitating Increased Private Sector Investment by Upgrading Agricultural Value Chains
Objective 1 will include the development and implementation of a clear roadmap for attracting and supporting private investment, including clear definition of roles and responsibilities within the GoR to improve the enabling environment and work with potential investors from their expression of investment interest to the implementation of the investment. Objective Under the supervision of the Senior Policy and Institutional Development Specialist the Embedded Investment Advisor (EIA)/Rwanda Development Board (RDB) will work collegially with the EAI/Ministry of Agriculture and Animal Resources (MINAGRI) and the Policy Support/Public Private Dialogue (PS/PPD) Advisor and other PSDAG team members in contributing to achievement of PSDAG Development Objective 1: To assist the Government of Rwanda to increase private sector investment. Achieving Development Objective 1 will require development of a GoR agriculture and agribusiness investment framework. The framework will define GoR agency roles and responsibilities with a priority focus on the MINAGRI, RDB and Ministry of Commerce (MINICOM). Additional support will be provided to other national and provincial government agencies when appropriate. The framework’s overall intent is to structure and develop GoR capacity to attract and support successful private investment in agriculture and agribusiness. The investment framework will also contribute to an improved business enabling environment that reflects frequent and informed public and private sector dialogue. Specific Tasks Specific Embedded Investment Advisor/Rwanda Development Board tasks include:
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 166
• Support RDB particularly Investment Promotion and Facilitation (IPF) Department to develop investor targeting strategies and proactive promotional plans in agriculture sector;
• Assist in strengthening the IPF’s capacity to generate, develop, manage and analyse agricultural data and make them available to investors.
• Assist in strengthening the IPF’s capacityin contacting investors and making individual and group presentations on investment opportunities in agriculture targeted value chains;
• Assist in strengthening the IPF’s capacity to follow-up with prospective investors and facilitate their investments.
• Identify regulations/policies governing investments and provide advice to potential investors in order to facilitate and guide their decision.
• Contribute to other tasks as assigned by Head of Department related to improving investment promotion activities at RDB.
• Act as lead and primary liaison for implementation of all PSDAG activities in partnership with RDB as defined by PSDAG’s published workplans and agreed upon each year. Ensure that the activities implemented reflect RDB investment promotion and private sector development mandates, priorities, policies, and personnel capacities.
• Contribute to the development of short term technical assistance terms of reference (TOR) for individuals and firms. Assist PSDAG to ensure that TORs, proposals, and identified candidates/firms are vetted with and are approved by apropriate RDB staff throughout the implementation process. Contribute to feedback for finalizaton of all project deliverables.
• Provide input to PSDAG Objective 1 team development of annual work plans; monthly, quarterly and annual reports; discreet analytical documents; performance monitoring; presentations; success stories; and other strategic and operational reporting.
• Under the Senior Policy and Institutional Development Specialist’s supervision work collegially and productively with the MINAGRI EIA and PS/PPD Advisor to achieve PSDAG objectives. Proactively identify and take advantage of team capacity building and knowledge management opportunities to enhance PSDAG and Rwandan agriculture and agribusiness investment promotion performance.
• Successfully represent PSDAG to RDB officials, RDB stakeholders and USAID/Rwanda when appropriate.
• Ensure that all project activities meet minimum PSDAG social inclusion and environmental compliance requirements.
• Participate in PSDAG annual staff performance reviews that identify performance strengths and weaknesses and recommend professional development activities.
• Other tasks as assigned PSDAG Chief of Party or her designee.
Supervision The embedded Investment Advisor/Rwanda Development Board will work under the overall supervision of the Senior Policy and Institutional Development Specialist. For his day to day activities at the RDB, the Embedded Investment Advisor will be supervised by Head of Investment Promotion and Facilitation Department.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 167
ANNEX VII: Monitoring and Reporting Requirements PSDAG Embedded Investment Advisor will monitor and report on outputs, outcomes and impact of activities under this MOU.As required by USAID, PSDAG will collect information and report on the following indicators:
1. Value of new private sector capital investment in the agriculture sector or food chain leveraged by PSDAG implementation (US$),
2. Number of agricultural enabling environment policies analysed, consulted on, drafted or revised, approved, and implemented with PSDAG technical assistance,
3. Number of public entities assessed for capacity in executing their roles and responsibilities, and
4. Number of private and civil-sector stakeholders (organizations and individuals) responding to calls for input on relevant reforms conducted by RDB with PSDAG support/facilitation.
In addition, PSDAG will work with partners to develop press releases and success stories for shared activities.
PSDAG FY 2017 ANNUAL PROGRESS REPORT: OCTOBER 1, 2016 – SEPTEMBER 30, 2017 | PRIVILEGED AND CONFIDENTIAL PAGE | 168