1. AGRICULTURAL DIALOGUE POLICY & VALUE FOR MONEY RWANDA July 2013

2. MINAGRI 2013 AGENDA 2 Policy Support Situation Analysis Institutional Arrangements Private Sector Participation Budget Trends CABRI Key Note VS RWANDA Conclusion & Way Forward

3. MINAGRI 2013  Agriculture is the dominant sector of the economy  Agriculture responsible for 32% of GDP  79,5% of employment is in rural areas  Arable land about 1,380,000 ha >>>52% of country’s surface area  Poverty is declining, although rural poverty is still high  Rural poverty fell from 61.9% to 48.7% over the last five years  60% of poverty reduction attributed to agricultural development  Rural poverty (48.7%) is higher than urban poverty (22.1%)  Food security is improving but malnutrition needs to be tackled  Production and productivity of staple crops have increased  21% of households are food insecure (460,000), a reduction from 35% in 2006  43% of children under 5 are stunted (due to poor feeding) 3 Situation Analysis – Rural Economy

4. MINAGRI 2013  The sector has made significant progress since 2000  The proportion of land under modernised agriculture increased from 3% to 20% from 2000-2010  Average agricultural growth rate of 6.5% under PSTA II  40 out of 40 policy actions validated under PSTA II  Increased ratio of national budget allocated to agriculture  Substantial increases in productivity of staple crops  Driven by interventions to improve the physical environment, including irrigation, terracing and soil erosion protection  The livestock sector is growing  Girinka and small stock distribution have provided poor rural households with a source of income and protein  68% of households had access to livestock in 2010 4 Situation Analysis - Achievements

5. MINAGRI 2013 Agenda 5 Policy Support Situation Analysis Institutional Arrangements Private Sector Participation Budget Trends CABRI Key Note VS RWANDA Conclusion & Way Forward

6. MINAGRI 20136 Policy Support - Strategic Context Vision 2020 8.5% Agricultural Growth Agriculture 25% of GDP 40% of land modernized ag EDPRS II 2013/17 Agriculture driving rural development Increased productivity and private investment 28% annual export growth PSTA III 2013/17 Productivity and food security Building capacity and innovation Commercializ ation and value addition CAADP Sustainable growth Strategic investment in agriculture State and non-state dialogue/ accountability

7. MINAGRI 20137 Cont’- Strategic framework Program 1: Agriculture and Animal Resource Intensification -> Irrigation and land husbandry -> Livestock intensification -> Targeting nutrition -> Privatizing input markets Program 1: Agriculture and Animal Resource Intensification -> Irrigation and land husbandry -> Livestock intensification -> Targeting nutrition -> Privatizing input markets Program 2: Research and Technology Transfer, Advisory Services and Professionalization of Farmers -> Collaborative research based on farmers needs and the market -> Private and targeted extension -> Encouraging entrepreneurship Program 2: Research and Technology Transfer, Advisory Services and Professionalization of Farmers -> Collaborative research based on farmers needs and the market -> Private and targeted extension -> Encouraging entrepreneurship Program 3: Value Chain Development and Private Sector Investment -> New forms of farming -> Agricultural financing -> Value chain approach -> Soft and hard market infrastructure Program 4: Institutional Development and Agricultural Cross-Cutting Issues -> Gender and youth focus -> Environmental mainstreaming -> Knowledge management -> Evidence based planning Program 4: Institutional Development and Agricultural Cross-Cutting Issues -> Gender and youth focus -> Environmental mainstreaming -> Knowledge management -> Evidence based planning

8. MINAGRI 2013 Agenda 8 Policy Support Situation Analysis Institutional Arrangements Private Sector Participation Budget Trends CABRI Key Note VS RWANDA Conclusion & Way Forward

9. MINAGRI 2013 Private Sector Participation – Economic Growth 9 The Private Sector plays a greater role in fuelling agriculture growth. FROM......TO...2020 TARGETS Public Investment... Private Investment... Farmers as Passive Recipients Farmers as Active Market Players Guaranteeing Food Availability Food Security through Economic Growth Government as direct provider Government as facilitator $1200 GDP per capita Average annual sector growth of 8.5% between 2012-2017 Production of 2,500 kcal/person/day 3.2 million off-farm jobs 5% of households with Borderline Poor Food Consumption Score (Food Security Indicator)

10. MINAGRI 201310 Roles of Different Actors Development of basic growth factors Building skills and knowledge in the sector Programmes to catalyse investment Public Sector Sharing costs with public sector Identifying profitable new opportunities and adding value Private Sector Alignment with government implementation plans Cost-sharing for public goods unattractive to private actors Development Partners Local level policy planning and financing Active participation in implementation and evaluation Direct interactions with farmers and representative groups Civil Society / Farmers

11. MINAGRI 2013 Agenda 11 Policy Support Situation Analysis Institutional Arrangements Private Sector Participation Budget Trends CABRI Key Note VS RWANDA Conclusion & Way Forward

12. MINAGRI 2013 INSTITUTIONAL ARRANGEMENT – PROCESS OF DECISION MAKING ON AGRICULTURAL EXPENDITURES 12 MINAGRI Policies, legislation & regulations Coordination, M&E Mobilise resources Agencies RAB,NAEB, Task Forces, Projects Coordinate & implement policies Carry out Research Extension Reinforce technical capacities Insure market linkages Ministry of Finance, Economic Cluster +IDP Development Partners (ASWG) NGO and Private Service Providers Input supply, marketing, processing & advisory services Farmers Org’s, Cooperatives Input supply, marketing, advisory services Local Governments: Districts, Prepare & implement district dev’t plans Promotion, coordination, M&E of crop and livestock activities Organisational & capacity building suppor t Farmer

13. MINAGRI 2013 PROCESS OF DECISION MAKING ON AGRICULTURAL EXPENDITURES  National priorities for the MTEF period and procedures are determined by MINECOFIN (Ministry of Economic Planning and Finance) whereby national priorities are translated into financial envelopes.  Agencies elaborate MTEFs and annual budget for the following year >>> Gender Budget Statement  Decision making on public expenditure at the local levels is determined through planning and budgeting processes  Preparation of National Finance Law by MINECOFIN and Parliamentary approval. >>>Released  Budget Revision 13

14. MINAGRI 2013 Cont’ - Ensuring Accountability 14  Joint planning and review through twice yearly JSRs  Regular meetings with ASWG and SWAp  Decentralized implementation to ensure delivery at the local level (JADF)  Planning & Budgeting meetings between Central and Local Level  Reporting within government (Performance contract, quarterly M&E)  Public Community Works  Better communication and information sharing >>>>>Efficient Allocation >>>> Avoid duplication

15. MINAGRI 2013  Rwanda signed the CAADAP Compact in 2006 and pioneered the CAADP implementation agenda with PSTA II (2008/12) – second cycle with PSTA III (2013/17)  Compact built on Rwanda’s “Vision 2020”, PSTA II developed with CAADP Support, PSTA II (and now PSTA III) programs cut across four CAADP Pillars  NAIP I emerged from PSTA II, costed at US$ 848M (funding gap of US$ 345M – more than 100% pledges during the BM) NAIP II estimation cost at US$ 2.5B  Contributed to policy efficiency  Establishment of the Country SAKSS Node 15 BUDGET TRENDS - CAADP Implementation

16. MINAGRI 2013 EXPENDITURES (Bil) 16 Fiscal Year Recurrent Budget Development Budget Total Budget Devpt (Rate) Execution Rate 20084.622.42782% 106% 2009/2010750.957.989% 95% 2010/20117.352.76285% 133% 2011/20128.760.569.287% 120% 2012/20137.670.678.390% 116% 2013/2014 7.681.789.3 92.5%

17. MINAGRI 2013 BUDGET TRENDS 17

18. MINAGRI 2013 AGRICULTURAL SPENDING Agricultural Spending as % of Total Spending: 7.4% : Allocation to the Ministry of Agriculture only 13.6% : Including Agricultural budget allocation to other Ministries, Districts or Government Institutions ( >>Public Expenditure Review Report in the Agriculture Sector, 2008– 2010/ October 2012) Financial Agricultural Decentralization: Through Earmarked Funds, 6% increasing as long as Districts’ capacity of absorbing the budget is greater (implications on management, coordination, reporting and capacity of staff to translate sector policies into activities). 18

19. MINAGRI 2013 CABRI KEY NOTE VS RWANDA  FIGURE 1: Agricultural Growth CAADAP target achieved by 6 Countries: RWANDA 6.5% >>>>>>>> (Target 8.5%)  FIGURE 2: Agricultural Public Expenditure as a percentage of total public expenditure: CAADAP Target 10% RWANDA 1995 – 2010: 5% 2003 – 2010: < 5% 13.6% (Last PER Report released)  Sub –Sector Policy/Strategies/Laws: 21 >>>>> 40 (last 5yrs)  Nearly 80% of investment in agriculture has been private sector investment, 20% Public >>>>>>> In Rwanda it’s the opposite. 19

20. MINAGRI 2013 CABRI KEY NOTE VS RWANDA  International Funding Vs Agricultural Investment Plan >>>> The estimation of funding from Development Partners is huge, and the funding gap significant. (33.5%)  The IFPRI modelling approach was applied in Rwanda, and a conclusion was reached: the degree of linkage between smallholder agriculture and the rest of the economy meant that growth in smallholder agriculture was particularly successful in reducing poverty. 20

21. MINAGRI 2013 CHALLENGES  Small Land >>>> Low Productivity  Agricultural of Subsistence  Market Access & Access to Finance  Agriculture >>>>>> Risky Business >>>> Mindset  Post Harvest Losses  Slow Disbursement >>>> Cash Flow  Ambitious Targets >>>>> Limited Resources >>> Inefficient use (>>>> Non motivated contractors)  Individual Understanding/Respect of value for money  M&E >>>>> From Central to Local >>>> Inefficient spending >>> Difficult Coordination 21

22. MINAGRI 2013 Conclusion & Way Forward  MINAGRI’s performance has been very good even by international standards because of most of the international indicators have been met e.g. budget execution, alignment, commitment to Maputo Declaration  Increased performance of the country’s agricultural (effectives, efficiency and competitiveness), production & productivity and thereby increased impact (wealth and job creation; poverty alleviation and food-nutrition security)  Lots of achievements >>>> Still have huge work to do towards Agricultural Investment Source >>>Private Sector 22

23. MINAGRI 2013 Conclusion & Way Forward  Ensure that there is always value for money in the goods and services delivered e.g. prices for goods should be maintained within the market prices and should not vary greatly within the same financial year  Assessment of lessons of PSTA II (Activities & Investment) and impact analysis of key success drivers/factors of PSTA III  Deliver a new implementation cycle for the CAADP implementation process in Rwanda through PSTA III  Capacity Building at all levels ( Central & Local) 23

24. MINAGRI 2013 THANK YOU MURAKOZE 24