Economic crisis? What economic crisis? Rwanda's economy, it seems, is impervious to the economic woes that rocked the globe last year, registering a historic growth rate of 11.2%. This was mainly driven by the exceptional performance of the agriculture sector, which grew by 15%.

The official figures were announced during the launch of the Africa's and Rwanda's annual economic report, as well as the annual report on the implementation of the Economic Development and Poverty Reduction Strategy (EDPRS).

Improved farming methods, including in animal husbandry, have led to a spectacular increase in agricultural produce. (file photo)

However, this strong performance of the primary sector comes in the wake of four consecutive years that have seen low agricultural production. According to the Rwanda's economic outlook report, from 2004 to 2007 agriculture only contributed to 0.1%, 4.8%, 1.1% and 0.7% of the GDP.

"Agriculture performed exceptionally well as a result of the radical policies that the government employed to revamp the sector," explained finance Minister James Musoni.

The growth of the agricultural sector is mainly attributed to the green revolution strategy, which involves the use of improved seeds, more appropriate application of fertilizers and better distribution of crops depending on the area best adapted to a specific culture. In addition, there was abundant rainfall.

Manasseh Nshuti, the senior adviser on economic matters to the President, also pointed out that the performance was also boosted by the spread of the agro-production (both crops and animal husbandry) across the country, instead of concentrating it in only a few areas.

Nevertheless, it has to be noted that the performance of the primary sector still largely depends on favorable climatic conditions, which cannot be controlled. Therefore, Nshuti warned that despite last year's excellent results, it is not yet sustainable.

"If you asked me whether the sector is sustainable, I would say no," Nshuti said.

He indicated that even if the sector continued the growth trend registered last year, it wouldn't be sustainable unless issues such as infrastructure and market access are addressed. "Even if the farmer gets good weather and the yields are high, he still needs a market and a proper road to get his produce to that market," Nshuti pointed out.

G8 pledges

Despite agriculture in Africa employing 60% of the labor force directly or indirectly, there are still fears of food insecurity and famine across the continent. During the last G8 meeting, pledges of US$ 20 billion were made to aid the agricultural sector.

Yet Nshuti remarks this will take some time to have an impact, since it will take long the funds reach the farmers. "Such a pledge might take between three and four years to get to the farmer," he said. "I think the most frustrated person is the minister of finance, because he needed the money like yesterday to help push the sector."

Ernest Ruzindaza, the permanent secretary in the ministry of agriculture, linked the sector's success to the government's crop intensification programs. He pointed that there were crops such as maize and cassava which had been prioritized in the intensification program and have performed extremely well.

He further pointed out that the agriculture ministry was teaming up with stakeholders such as the commerce ministry to design market linkages as well as improving the capacity of cooperatives. "We are working to ensure that farmers have access to markets and at the same time we are encouraging them to group in cooperatives," Ruzindaza said.

He also indicated that the ministry was involved in pro-poor programs such as the one-cow-per-family project, as well as looking forward to apply advanced irrigation techniques to ensure that farmers do not have to depend on unpredictable rainfall.