Value addition is crucial to make agriculture viable

Although a lot of progress has been made to make agriculture more efficient and productive, the focus has so far been mainly on growing, and not on transforming crops. Yet adding value is essential to turn subsistence farming into a commercial activity. Officials point out that attracting investors to agro-processing is only possible when there is sufficient supply.

Cassava processing plant in Rwanda: agroprocessing is crucial to make agriculture viable (Photo: Eric Didier Karinganire)

Cassava processing plant in Rwanda: agroprocessing is crucial to make agriculture viable (Photo: Eric Didier Karinganire)

Assoumani Bagara, a 62-year-old a resident of Rugarama sector, Gatsibo district, has been a farmer for most of his life, yet it was only ten years ago that he was able to transform his agriculture of subsistence into market-oriented farming. He has been growing different crops such as banana, cassava, Bagara recalls, yet lack of sustainable market and post-harvest management remained top challenges for the farmer.

“Apart from daily survival, I was gaining almost nothing,” he says. “We used to have a period called Kaneke where bananas were spoiled due to lack of market. Actually a big part of my yield at that time was lost.”

So he began thinking how he could avoid such a loss, and found that with some skills and rather simple machines, the bananas or potatoes could be dried and conserved for 6 months. They can also be made into flour that is used in making cakes, biscuits, bread, gateaux and the like.

“This has significantly stabilized and increased my income,” Bag­ara says. “I now get fixed, and higher, prices.”

That was not the end of it. Since 2007, Bagara has brought together around 180 neighbor­ing farmers of his neighbors to share his experiences in a co­operative. It has a lot of advan­tages.

“I easily get bank loans since I present a well-planned business which ensures that I will pay back,” he explains.

From roots and tubers, ce­real, banana to pulses farming among others, Bagara has made big steps not only compared to his neighbors, but also country­wide. Although the government has been making tremendous efforts to improve the agricul­ture sector, Bagara remains an exception. Despite its role as a major catalyst of sustainable growth and poverty reduction, plus the fact that agriculture remains the primary source of employment in the country, a large number of the farmers are still stuck in subsistence farm­ing and ignorant of the benefits of processing their produce.

For instance, farmers from Kirehe district Eastern prov­ince say that they have no idea how they can transform their yield to add val­ue. While they have very large banana plantations, they just use the produce for their own daily consumption, sale on the market and, it is true, making urwagwa.

As a result, the prices they fetch fluctuate heavily: from Frw 100 in periods of low sup­ply, to Frw 50 when there is a lot of production. It even happens that they can’t find a market for their crops, and they have to let them rot.

Strengthening the value chain

Over the past decade, due to programs such as land use con­solidation and crop intensifica­tion, agricultural production has increased significantly. At the same time, however, little progress has been made when it comes to setting process­ing facilities. Velena Ruzibuka, in charge of agribusiness at Minagri, admits the sector is still in an embryonic state, but says that a lot of prerequisite activities have been taken to encourage investors in market-oriented farming.

“We are committed to strengthen the value chain,” she says, adding that investors can only be attracted when there is sufficient supply.

According to the Minagri official, the government first and foremost put much effort in primary activities such as marshland treatment, provid­ing improved seeds and the like in order to ensure the supply needed by investors. She further mentions that initiatives have been taken to encourage agro-processing, such as setting up an SME fund and the construc­tion of factories – so far, three rice-processing factories have been built in Eastern province, as well as a cassava-processing plant in Ruhango.

At the same time, programs are implemented to increase the skills of farmers so as to ensure that they can be competitive when it comes to adding value. “There are extension officers that are providing farmers with skills, teaching them standards, post-harvest management and the like,” Ruzibuka explains, adding that the same services also reach the farmers through governmental institutions like the recently launched Rwanda Agriculture Board as well as NGOs.

And in addition, farmers are being encouraged to set up co­operatives, not only to make their operations more efficient, but also to improve the effec­tiveness of training.

They would do well to pay a visit to Assoumani Bagara farm, since he too couldteach them a few lessons. “Agro-processing has significantly changed my family’s life – I have not only improved my farming, but now I also live in a decent house and can pay my children’s school fees,” he explains. “I’ve been us­ing only simple machines, but I found they have the potential to give a big boost to small farm­ers.”

Kigali business people support President’s Girinka Program

Business people in Kigali on Friday handed over Frw 300 million to President Kagame to support his Girinka program which aims to empower vulnerable families. At the same time, they celebrated the first anniversary of his second mandate.

PSF officials hand over a check worth Frw 300 million to the President to support his Girinka program

PSF officials hand over a check worth Frw 300 million to the President to support his Girinka program

Through the event, organized by the Private Sector Federation, the business community wanted to express its gratitude for the efforts by the government to create a business-friendly environment, and also to exercise its corporate social responsibility.

Faustin Mbundu, the chairman of PSF, explained that the initiative had been taken by the business people themselves, and will be held annually happen to support one of the country’s development programs.

“Business people should be the engine of development,” Mbundu said. “This will be achieved through entrepreneurs’ efforts.”

He said the Frw 300 million would allow the Girinka program to hand out a further 1,000 cows, although Mbundu suggested that other types of animals might be given to those vulnerable families who think they can’t adequately take care of a cow.

The Girinka, or one-cow-per-family, program was initiated by President Kagame few years ago as one way to eradicate poverty, and as some of its beneficiaries testified on Friday, it has not missed its effect.

“I used to have a miserable life, but now I’ve got somewhere,” said Elevaniya Nyiramajyambere, a resident of Gahanga in Kicukiro district. She said that the cow had not only helped to improve her family’s daily life, but also allowed her to do some investment such as changing her grass-thatched house for a decent one, something she had never known before.

“I even started wondering: am I still Elevaniya?” she said with a choked voice. “I now get milk for drinking, I can afford to send my children to school and to pay health insurance scheme, as well as provide for other basic needs.”

For President Kagame, empowering vulnerable people to improve their life should be a duty to everyone since all people deserve a decent living. Otherwise, he said, it would be a great debt to vulnerable people if those who are better off do not support them. “This is the real understanding of the current Rwanda,” Kagame remarked.

As for the donation by the business community, the President pointed out that while it was an act of social responsibility, it also was in their own interest. “When you improve the lives of poor people, they might later become your customers,” Kagame said.

He also thanked the business community for the confidence they had showed in him. “You trusted me, and I will never cease to work to deserve that,” Kagame said. “The trust you conveyed to me is worth more than gold.”