New agriculture program:Rwanda-EU ink €69m deal

The EU and Rwanda recently signed a financing agreement on Transformational climate-smart and inclusive agriculture program in Rwanda. This was for an amount of €69 million.

Initiative’s objective

The overall objective of this program is to consolidate the sustainable agricultural transformation in Rwanda by:

(i) fostering Rwanda’s agricultural transition to socially and environmentally inclusive food systems

(ii) ensuring Rwanda’s environmental and climate sustainability.

Consequently, the agriculture program will contribute to Rwanda’s Nationally Determined Contributions objective on climate adaptation. In addition, the agriculture program also encompasses a Team Europe Initiative on ‘Sustainable and inclusive agricultural transformation.’ The team is built around the construction and development of the Kigali Wholesale market and related markets in secondary cities. These are central components of the highly productive and inclusive value chains.

According to Dr. Ndagijimana, “The financial support we just signed today is a timely contribution to our National Strategy for Transformation for modernization and strengthening the productivity of agriculture and livestock while promoting sustainable management of the environment and natural resources to transition Rwanda towards a Green Economy.”

On the other hand, Uyarra reaffirmed the good cooperation between Rwanda and the EU: “The European Union has a long-standing partnership with Rwanda and we are proud to be one of the key partners in the country’s path to sustainable development. With this strategy, we renew the EU’s commitment to supporting pro-poor, sustainable, and inclusive economic growth, by focusing on a green deal for agricultural transformation and achieving Rwanda’s climate adaptation goals.” The three-year Financing Agreement will reinforce Rwanda-EU bilateral cooperation and advance common interests. 

Implementation and performance indicators of the agricultural program

The Budget support-sector reform contract (€ 52 million) will be the basis for the implementation of this cooperation. The Budget support, via its performance indicators, will target progress achieved on farmers’ incomes. In addition, better services delivery to farmers at the local level, including land husbandry and climate-smart agricultural practices. This will have a focus on agroforestry and landscape restoration.

This happened on 6 October 2022, the EU Ambassador-designate to Rwanda, Belen Calvo Uyarra met Rwanda’s Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana for a courtesy meeting.

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