Industrial Master Plan for the Agro-Processing Subsector (2014 - 2020).

This Industrial Master Plan for the Agro-Processing Subsector is a nationwide sectoral document aiming at developing a sustainable agro-processing subsector that will enhance economic growth and reduce poverty through job and income creation in line with Rwanda’s Vision 2020 so that to achieve the Vision for the sector of a vibrant economy driven by value-added agriculture. The overall goal will be reached through the following (i) strengthening supply-side productive capacities through improved agricultural productivity; (ii) promoting investments in the agro-processing subsector which are necessary for reducing post-harvest losses and for value addition; (iii) developing policies and support services necessary for market access for Rwanda’s agro-industry products. Rwanda’s agro-processing subsector is based on eight strategic pillars 1) Boosting agricultural productivity; 2) Upgrading agro-industrial value chains; 3) Enhancing capacity for market access; 4) Strengthening technological efforts and innovative capabilities; 5) Promoting effective and innovative financing; 6) Promoting private sector participation; 7) Improving infrastructure and access to energy; 8) Developing institutional capacities.
To make agriculture more productive and sustainable, the agro-processing sector needs (i) promotion of the use of fertilizers, agricultural machinery; (ii) enhancement of water use and irrigation; (iii) reduction of post-harvest losses; (iv) addressing the impact of climate change; (v) investments in production technology and promotion of relevant innovation.
In order to enhance more inclusive and efficient agricultural and food systems, the Masterplan envisages mainly (i) exploitation of the emerging opportunities in domestic, regional, and international markets for processed and higher-value agro-industrial products; (ii) diversification towards market dynamic products; (iii) policies to reduce supply-side constraints and improve business environment; (iv) incentive structure for agribusiness; (v) mobilization of traditional and innovative sources of financing (including micro-level financing tools); (vi) access to reliable and appropriate infrastructure (including energy, mostly electricity generation and distribution; water, waste and sanitation management and transport infrastructures such as roads, railways, and airports).
As for Governance, the interventions are directed to create strong and well-functioning institutions. The policy action requires targeting microeconomic foundations within the context of a sound macroeconomic strategy and the pivotal role of institutions. In this regard, the following interventions are necessary (i) improving trade logistics, such as infrastructure, transport, energy, water, and ICTs, to make doing business more efficient at lower transaction costs; (ii) enhancement of the microeconomic business environment; (iii) measures to foster the upgrading of agro-industrial clusters; (iv) targeted science, technology, and training policies with a stronger focus on skill development and better organizational capability; (v) strengthening of institutions that will develop and implement policies.