The government plans to introduce agrihubs and food basket sites as part of innovations to drive forward its agriculture sector, under a new strategy, The New Times understands.
The fifth edition of the Strategic Plan for Agriculture Transformation (PSTA 5) was published by the Ministry of Agriculture and Animal Resources on March 20. It runs from 2024-2025 to 2028-2029. Agrihubs and food basket sites constitute a new management model of agricultural land in Rwanda.
The 5th Strategic Plan for Agriculture Transformation (PSTA 5) seeks to modernize crop and livestock production, cut post-harvest losses, enhance market linkages, boost exports, and ensure food security for all Rwandans. Read the full document: https://t.co/yusIvzK66Z pic.twitter.com/gssBrQXv3e-- Ministry of Agriculture & Animal Resources |Rwanda (@RwandaAgri) March 20, 2025
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At the core of PSTA 5, these initiatives aim to concentrate resources in key production areas, enhance collaboration among agri-food system actors, and drive Rwanda's agricultural transformation with significant private sector involvement.
Currently, no land has been designated as an agrihub. However, under the strategy, 1,008 hectares will be allocated in 2024/2025, increasing to 4,032 hectares in 2025/2026 and 5,600 hectares in 2026/2027. Similarly, food basket sites will cover 35,717 hectares in 2024/2025 and expand to 324,702 hectares by 2028/2029.
According to the new blueprint, to achieve the desired agricultural productivity and growth, an innovative approach to land management will be implemented.
Agricultural land with potential for consolidation will be identified and mapped to facilitate focused interventions from both the public and private sectors.
This initiative aims to enhance production for food security and commercial purposes. Infrastructure investments, such as irrigation systems, cold chain facilities (for horticultural produce and dairy products), post-harvest handling, and feeder roads, will be prioritised based on the specific needs of these sites to strengthen production and market linkages.
Cold chain facilities refer to equipment or infrastructure for pre-cooling, refrigerated transport, commercial storage, display during marketing, and maintenance at home, according to the UN Food and Agriculture Organization (UNFAO), which adds that it is essential for reducing food losses and waste, as well as for the delivery of safe and nutritious food.
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Farm Service Centres, the strategic plan points out, will be established around these areas to provide critical support, including inputs, private-led extension and mechanisation services, out-grower services, and other essential services.
The identified sites will be categorised into two classifications: Agrihubs and food basket sites.
How will they operate?
Agrihubs, as envisioned in the PSTA 5 strategy, are market-driven agricultural production sites operating on large land parcels of at least 500 hectares and often featuring irrigation systems.
They will be mainly operated by large-scale farmers and/or investors and equipped with advanced modern infrastructure, including irrigation systems and production and post-harvest machinery. They will target both domestic and export markets, the strategy states.
Food basket sites, according to the blueprint, will capitalise on consolidated land sites of not less than five hectares that are agglomerated under one management for production, product collection, and marketing. They will mainly be managed by smallholder farmers' organisations with support from the government in five years, after which the food baskets will be autonomous.
Production under food basket sites will primarily focus on food security, the domestic market, and export markets. Depending on the specific needs and characteristics of the sites, various management models will be adopted.
These models include the cooperative-driven model, which is farmer-led and functioning in certain areas, but generally requires substantial improvement in governance and technical capacities.
The government and various development partners will support them with professional management skills to enable them to run autonomously and professionally after five years of PSTA 5 implementation.
Another model is the out-grower model, whereby off-takers sign supply contracts and provide services to farmers. This model may work in some value chains, especially export value chains with fewer options for side-selling.
Support will be performance-based and directed toward increased production and strengthened market linkages, incentivising the out-grower to invest in farmers and farms.
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The land-leasing model is also considered, which consists of a farmer or investor taking over production and paying landowners a fixed fee, or possibly a share of revenues or production, and they may be employed as workers as well. Under this model, the role of the government is to ensure facilitation and fairness between the parties.
This underscores the recommendation earlier made by agricultural economist Alfred Bizoza when speaking to The New Times about the best farming model for Rwanda.
Bizoza said that, given the fact that most farmers own small land -- with an average agricultural land holding of about 0.2 hectares -- Rwanda can benefit from a farming model whereby small parcels are consolidated and given -- upon lease from owners -- to agricultural investors who have the required resources to optimise yields.
He suggested that, by doing so, the country can utilise its land to meet the increasing food demand for its growing population and raise agricultural output.
