5 August 2008
Kigali — Government in Rwanda has signed an International Development Association (IDA) grant worth $41 million.
The grant agreement signed between Rwanda's Finance minister James Musoni and the World Bank Country Manager Victoria Kwakwa includes $35m for the Rwanda Second Rural Sector Support Project (RSSP2).
IDA is part of the World Bank that helps the world's poorest countries. The association aims to reduce poverty by providing interest-free credits and grants for programmes that boost economic growth, reduce inequalities and improve people's living conditions.
According to a statement from the World Bank RSSP2 is the second in a series of three projects funded through a 16-year Adaptable Programme Loan (APL).
The statement said that RSSP2, aims at revitalising the rural economy and improving the quality of life of the rural poor through the transfer of technical and financial resources for sustainable rural development.
Launched in 2001 with a credit of $48 million, the first phase of the APL (RSSP1) took seven years to complete.
RSSP2 is scheduled to run for four years and if successful, will be followed by a third phase of similar magnitude and duration.
Mr Michael Morris, World Bank's Lead Agricultural Economist and Task Team Leader for RSSP1 said in Kigali that given the tremendous importance of agriculture in Rwanda's economy, the country is unlikely to achieve its long-term development goals without dramatically increasing productivity in the rural economy.
"The three-phase Rural Sector Support Programme represents a centerpiece of the country's agricultural development strategy, and it is gratifying to see both the World Bank and the government making such a sustained commitment," Mr Morris said.
Rwanda's first Rural Support Project (RSSP1) mainly focused on building capacity for sustainable intensification of marshlands and hillsides agriculture, as well as development of post-harvest value-adding activities.
Ms Kwakwa said that the emphasis under RSSP2 will be on broadening and deepening the technical and institutional support and raising the level of investment to accelerate the pace of intensification and commercialisation of agricultural production.
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