The government and the African Development Bank (AfDB) have signed a US$ 23 million grant that will finance Bugesera district irrigation scheme under the Bugesera Natural Region Rural Infrastructure Support Project.

Apart from irrigation which will include hillside and marshland irrigation systems, the fund will also be used to purchase fertilizers which will help increase crop production.

Over the years, Bugesera region has been hit by severe drought spells due to soil erosion caused by heavy deforestation, silting of lakes and climate change. The result has been that over 60% of the Bugesera population leave under poverty line compared to the national average of 56.9%, and yet, not so long ago, the district was the Rwanda's bread basket.

According to James Musoni, the minister of finance, the timing of the assistance is relevant given the fact that food security has become an issue especially on the African continent fueled by the long drought spells, unpredictability of rainfall and climate change all of which have resulted in significant drop in agricultural output.

Agriculture, being the top most employing sector in the country contributes about 37% to the overall GDP of Rwanda.

According to a recent research, one percent growth in agriculture reduces poverty by 1.16% at the national level while the same 1% growth reduces poverty by 1.18% at the rural area level.

"Agriculture has and will continue to play an important role in the development of the country through many aspects such as modernization of exports, infrastructure development, curbing of inflation and general budget support," Musoni said.

AfDB country representative Diko Mukete pointed out that apart from Rwanda, Burundi is also set to receive the same amount of grant as the entire project is multinational and both countries have signed an agreement to implement the project. "Bugesera region straddles both Rwanda and Burundi and a combine grant of US$ 46 million is expected to finance the total cost of the project," Mukete said.

The project is expected to be coordinated on the regional level by a joint project coordination unit while at the national level it will be implemented by the government's existing Bugesera Agricultural Development Support Project Implementation Unit.

Mukete pointed out that the population of the project areas in both Rwanda and Burundi is estimated at 834,000 of which nearly 300,000 lives in Bugesera District. The project areas in both countries are contiguous, especially around Lake Rweru and Cyohoha which are the two major cross border lakes as well as the Akanyaru marshland.

He also indicated that AfDB's involvement in the project is in line with the frame work of the country's economic Development and poverty Reduction Strategy (EDPRS), which has singled out agriculture as a priority sector to boost economic growth and reduce poverty.

The project is expected to support Rwanda's Agriculture Transformation Strategic Plan which includes crop intensification, infrastructure development for sustainable agriculture sector growth, water and soil management and food security enhancement. Its implementation is expected to commence early 2010 and is expect to take six years.