A POLISH DELEGATION AND Hon. MINISTER MUKESHIMANA DISCUSS BUSINESS OPPORTUNITIES IN AGRIC MECHANIZATION

Minister of Agriculture and Animal Resources, Dr Gerardine Mukeshimana, on the 6th October 2017, received a Polish delegation and discussed about business opportunities available in Rwanda’s agricultural mechanization and how they can build partnership in this area.

The Polish delegation, in Rwanda from the 4th to 6th October 2017, was composed of Tomasz Pisula who is Board President of the Polish Trade and Investment Agency, and a representative from the Polish Export Bank (foreign investment department) among others.

Minister Mukeshimana thanked the Polish delegation for their keen interest in Rwanda’s agricultural mechanization and pledged the government support.

“We provide incentives to anyone who wants to come in and do business in Rwanda,” Minister Mukeshimana told the Polish delegation.

In this regard, the delegation was provided with details of a proposal, developed by the government of Rwanda, for promoting a Private Sector Driven Agriculture Mechanization through providing access to affordable mechanization services with the main aim of developing a sustainable solution to modernize the agriculture sector through appropriate Public Private Partnership models where farmers and service providers have access to low cost farm machinery lease scheme.

This model intends to promote and strengthen a private sector led agricultural mechanization of affordable farm machinery and services; like, for instance, establishing a short-term (5 years) subsidy scheme of 30%-40%.

According to Innocent Nzeyimana, the Head of Land Husbandry, Irrigation and Mechanization Department at Rwanda Agriculture Board (RAB), with 40% subsidy, this model would lead to a reduction of unit cost (tractors and attachments) from 30,000USD to 12,000USD; increased number of smallholder farmers accessing farm machinery from 1,500 to 400,000 farmers; and reduced machinery hiring rates by smallholder farmers from 80,000 Frw/ha to 48,000 Frw/ha.

This financing mechanism is meant to reduce high cost of the mechanization equipment and the related services in order to transform the agriculture sector from subsistence to market oriented and high value addition sector.

The polish delegation is also scheduled to meet with other government officials to discuss the details of the mechanization project and especially the financing mechanisms of the project and also explore other investment opportunities in Rwanda.

The government rationalizes the promotion of agricultural mechanization in its primary goal of turning agriculture into a market-oriented and value-adding sector through increased productivity and higher crop quality for food security and economic growth.

Generally, the use of farm machinery is more widespread in the eastern part of the country, where gentler slopes and larger farm holdings allow for the efficient use of mechanized tools and large equipment. Currently, 23% of all farm operations have been mechanized.

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