Rwanda - Agricultural Export Diversification Pilot Project

Report No. PIC990 Project Name Rwanda-Agricultural Export Diversification Pilot Project Region Africa Sector Agriculture Project ID RWPA2269 Implementing Agency Ministry of Agriculture and Livestock Kigali, Rwanda Contact: M. Frdric Nzamuram aho, Minister Tel: (0) 75689 Date PID Prepared January 1994 Projected Board Date Novem er 1994 Project 0 jective 1. To launch the development of the country's non-traditional export crops through a pilot approach focusing on market intermediaries. Project Approach 2. The project proposes to test a replica le approach to help launch a diversified agricultural export industry in Rwanda. As presently conceived, ut su ject to changes and improvements on the asis of findings in the course of preparation and implementation, the project would: (a) annually, select a small num er (5-6) of via le product lines for which there is evidence that Rwanda has a comparative advantage; solicit, y pu lic invitation, would- e entrepreneurs interested in setting up usiness to export products in the selected lines. In their reply to the invitation, the candidates would e required to provide their own usiness plans and investment requirements; (c) select some 5 to 10 entrepreneurs per year. The invitation would specify the selection rules. (d) develop, with the selected entrepreneurs, a work and assistance program aiming at their esta lishment as exporters; (e) formulate case-specific technical assistance packages tailored to the needs of selected entrepreneurs. Packages would consist of: (i) expertise in: production, market development, processing, storage design construction and operation, logistics, legal, finance, etc; (ii) assistance in o taining equity and/or de t financing (the project itself would not provide financing); (iii) resources for prospecting markets and concluding export sale arrangements, etc. (f) launch the entrepreneurs in usiness. Assist, as needed, to  conclude regulatory formalities and financial arrangements, and in the initial stages of operations (about 6 months), assist entrepreneurs, as needed, in organizing production, processing, logistics, closing sales and administration; and (g) provide monitoring and follow up support for about one year after launching after which the entrepreneurs would be strictly on their own. Implementation 3. The project would be implemented over three years. Responsibility for implementation would be given to a small team of technical assistants specialized in this field and operating from within the secretariat being established within the Ministry of Agriculture to coordinate agricultural reform activities under the Agricultural Sector Adjustment Credit (AGSAC). The team would select and supervise the technical experts recruited to assist the entrepreneurs. In selecting technical expertise ample use would be made from pools of former or retired businessmen and specialists through institutions in various donor countries (e.g. CESO in Canada, ECTI in France). This form of technical assistance is often less expensive than traditional consultants. Cost and Financing 4. A strictly indicative cost figure would be of the order of US$5.0 million of which IDA could finance about US$ 3.0 million. Other donors would be solicited in the course of preparation. Environmental Aspects 5. The project has not yet been assigned an environmental category. Contact Point Public Information Center The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. - 2 -