Cablegate: Gor Releases 2009-2012 Agricultural Investment Plan

VZCZCXYZ0001
PP RUEHWEB

DE RUEHLGB #0747 3171009
ZNR UUUUU ZZH
P 131009Z NOV 09 ZDK
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC PRIORITY 6418

UNCLAS KIGALI 000747

SIPDIS

E.O. 12958: N/A
TAGS: EAGR EAID ECON RW
SUBJECT: GOR RELEASES 2009-2012 AGRICULTURAL INVESTMENT PLAN

1. (U) The Ministry of Agriculture (MINAGRI) on November 13
provided a copy of its 2009-2012 investment plan to post. The
investment plan is the financing component of MINAGRI's
second overall Strategic Plan for the Transformation of
Agriculture (PSTA II). The PSTA II implements Rwanda's
Comprehensive African Agricultural Development Program
compact (CAADP). (Note: CAADP is a country led program under
the African Union/New Partnership for African Development.
End note.) The PSTA II has four programs: (i) intensification
and development of sustainable production systems; (ii)
support to the professionalization of producers; (iii)
promotion of commodity chains and agribusiness development;
and (iv) institutional development. The total value of the
investment plan is $848 million, while the estimated
contribution so far from GOR, the private sector, and donors
represents only 48 percent of the total need.

2. (U) The investment plan identifies overall investment gaps
at the program level for GOR fiscal years 2009-2012:
Program 1- Total Cost: $658.5 million, Total Gap:
$331.8 million
Program 2- Total Cost: $42 million, Total Gap:
$15.5 million
Program 3- Total Cost: $128 million, Total Gap
$88.5 million
Program 4- Total Cost: $19.5 million, Total Gap:
$6 million

3. (U) The investment plan also identifies sub-programs that
are deemed "absolute priorities for the Ministry of
Agriculture." They are: Sustainable Management of Natural
Resources and Water and Soil Preservation; Food Security and
Vulnerability Management; Research for Transforming
Agriculture; Strengthening Rural Financial System;
Institutional Development. Where budget support is not an
option MINAGRI has asked donors contribute to a "basket fund"
in order to reduce transaction costs.

4. (U) Comment: Post will provide additional reporting on
specific aspects of this plan and food security issues in
Rwanda. End Comment.

SYMINGTON

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