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PROGRAMS
Expanded Economic Oportunities in Rural Areas
This USAID Rwanda Strategic Objective is divided into the following areas:
- The expanded adoption of improved agricultural and business practices
- Make rural finance more accessible
- Improve rural infrastructure
An Overview
40% of Rwanda’s GDP is based on subsistence agriculture. Due to fluctuations in rainfall agricultural production and food prices vary sharply from year to year. To reduce the threat to livelihoods of subsistence farmers that make up 90% of the population, USAID’s economic growth program expands opportunities in rural areas and increases the diversity of off-farm productive enterprises, agricultural productivity, household level incomes, employment, and corresponding rural financial services for targeted communities. Rural infrastructure improvements contribute to increased productivity and diversification of income.
Even with poor rainfall in the last quarter of 2004, the 2005 coffee season saw important price and production gains (91 % sale price increase) in the higher priced fully washed coffee where USAID is assisting producers.
USAID support since 2000 to the Union des Banques Populaires (UBPR), Rwanda’s leading credit union, led to an almost doubling of members from 228,846 to 421,965. In an effort to increase credit in the underserved agricultural sector, USAID instituted a loan guarantee agreement with the Bank of Kigali, a leading commercial bank in Rwanda, which has generated $2 million in additional credit for the agricultural sector.
Food Aid Partners: ACDI/VOCA, World Vision and CRS
Food assistance activities contribute to agricultural productivity, agri-business development, soil conservation, reforestation, and food security. For example, USAID works with farmers’ organizations to promote soil and water conservation through terracing steep slopes, land reclamation in the wetlands, and other improved agricultural practices.
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People Living With AIDS Association in Byumba receive Food Aid
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Food aid resources also improve agricultural competitiveness through the rehabilitation of farm to market roads and bridges, lowering the cost of transportation. In addition, some food resources are specifically targeted for the most vulnerable Rwandese, including orphans and people living with HIV/AIDS.
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US$58 million in Food Aid has been donated by the United States Government between 2000- 2005.
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Coffee Success Story
Before
In 2001 there were no coffee washing stations. Every grower had to de-pulp coffee cherries by hand, resulting in inferior quality coffee beans. The Rwandan coffee sector was fighting a losing battle in the international market of low-cost, low-quality coffee.
After
Today, Rwandan specialty coffee is amongst the best in the World.
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Why?
USAID has supported coffee washing stations and cooperatives to process the coffee cherries and produce the high quality Arabica coffee. Since 2001, specialty coffee buyers have gone from 0 to 25 and exports of specialty coffee have increased from 0 tons to 1,200 tons thanks to USAID support.
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The coffee cherries are sorted and then washed at the coffee washing station.
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| Rwanda currently exports 1,200 tones of specialty coffee. USAID has three projects spurring the growth in the specialty coffee sector, PEARL, ADAR and ACDI/VOCA. |
Chilli Peppers and Cassava.
The Challenge
The vast majority of Rwandese are poor, rural subsistence farmers dependent on rain-fed agriculture. Two common crops grown in Rwanda are cassava and chili peppers.
The Results
USAID, through its ADAR, PEARL, and ACDI/VOCA projects, is transforming these food crops into high value cash crops.
In early 2005 the first container of Rwandan Cassava Flour (“Bon Foufou”) was shipped to France making it the first product grown, processed, packaged and exported directly to a European supermarket chain from Rwanda. There is a 310% increase over the price of local cassava flour. For the Bird’s Eye Chili Peppers, the first container was exported to the United Kingdom with another soon to be sent.
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Chilli peppers
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USAID assistance is focused on increasing both yields and value principally by introducing agricultural best practices exploiting the high value organic chili and chili sauce markets.
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