The partnership will catalyze investment in trade of agricultural commodities, especially to supply hotels, supermarkets and restaurants by farmer cooperatives.©FAO/Teopista Mutesi

The Food and Agriculture Organization of the United Nations (FAO) and the Government of Rwanda through Rwanda Development Board (RDB), have signed a Technical Cooperation Programme Project (TCP/RWA/3706) aimed to digitalize commerce in agricultural value chains.

The two year project “Support Local suppliers’ capacity development and promotion of online trading in Rwanda”, will strengthen the capacities of Small and Medium Enterprises (SMEs) to be more competitive and link them with big buyers both in and outside Rwanda.

The intervention will target three selected agriculture value chains; Horticulture, Livestock and agribusiness.

The project is also exploring innovations in agriculture to support Rwanda’s efforts towards a cashless economy.

FAO believes that when e-Commerce is adopted, can increase the farm gate price and gives local SMEs the chance to access the online international market.

Some of the expected outcomes from the project include creating linkages for farmers and distributors of farm produce with buyers such as hotels; increasing the farm gate price for farmers’ produce; reducing the country’s import bill as well as allowing local companies to compete in both the local and global markets.

An e-Commerce strategy for agricultural value chain in Rwanda will be developed in line with the country’s ambitions towards the vision 2050.

Commenting after signing the partnership today, RDB Chief Executive Officer, Clare Akamanzi said:

“Agricultural transformation especially through competitive value chain development is among the key pillars of our National Strategy for Transformation [NST1] and FAO is a very important partner in achieving this. The partnership will provide the answer as to why big hotels and supermarkets continue to import agricultural related produce such as, poultry products, fruits, and beef with all resources at our disposal. We will ensure that we make the most of this throughout the project implementation.”

FAO Representative to Rwanda, Gaulbert Gbehounou, said:

“As FAO, we support our member countries to engage in sustainable agriculture and when we talk about sustainability, it has three dimensions; environmental, economic and social. The environmental dimension is there to ensure that agricultural production doesn’t degrade the environment. And once farmers produce, they need to sale and make sure they earn a good living from their cultivation because if they earn well from their farming they can be able to improve and create jobs. So we are happy and I look at this partnership with RDB as a start of something bigger we can do together."

The development of e-Commerce ecosystems and Agriculture-based value chains is one of Rwanda's NST1 targets that aims  to solve business related problems.

The project will have both direct and indirect benefits to the Rwandan economy, in terms of, reduction of hotel imports, job creation, poverty alleviation and ease trade deficit.

It will also enhance skills and capacities of local community and farmers to rethink and devise means to improve production methods and quality of agro-related produce, in order, to tap into local and global markets.

Apart from RDB, FAO will work with other partners including, the Ministry of Agriculture and Animal Resources (MINAGRI) and Ministry of Trade and Industry (MINICOM) and Ministry of ICT and Innovation, in implementing the project.

Contact:

Teopista Mutesi | Communications Specialist | Email: [email protected] OR [email protected]