April 2018 This FY2018 Q3 Progress Report was produced for review by the United States Agency for International Development (USAID). It was prepared by RTI International for the Rwanda PSDAG Project.

RWANDA PRIVATE SECTOR DRIVEN AGRICULTURAL GROWTH (PSDAG)

FISCAL YEAR (FY) 2018 QUARTERLY PROGRESS REPORT: APRIL 1, 2018 – JUNE 30, 2018 CONFIDENTIAL

Cover photo: The US Ambassador to Rwanda, Peter H. Vrooman (in a tie) during the launch of USAID partnership with Masaka Creamery Ltd.,

Masaka District, June 18, 2018 (Photo by [REDACTED])

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RWANDA PRIVATE SECTOR DRIVEN AGRICULTURAL GROWTH (PSDAG) PROJECT Fiscal Year (FY) 2018

Q3 Progress Report: April 1, 2018 – June 30, 2018

DISCLAIMER This FY2018 Q3 Progress Report was made possible through support provided by the U.S. Agency for International Development, under the terms of contract no. AID-696-C-14-00002. The opinions expressed herein are those of Research Triangle Institute and do not necessarily reflect the views of the U.S. Agency for International Development or the United States Government.

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TABLE OF CONTENTS

ABBREVIATIONS 9 1. EXECUTIVE SUMMARY 15 2. PROJECT PERFORMANCE 18

2.1 OBJECTIVE 1.1: ASSIST GOR TO INCREASE PRIVATE SECTOR INVESTMENT 18 2.1.1 OBJECTIVE 1 MILESTONES AND PARTNERSHIPS 18 2.1.2 OBJECTIVE 1 ACTIVITIES 19

Activity 1: INFORMATION ON LAND FOR COMMERCIAL INVESTMENT 19 Sub-Activity 1.1 Agriculture Land Information System (ALIS) II 19 Sub-Activity 1.2 Land Use Management Guidelines 20 Sub-Activity 1.3 Technical Assistance for Farmer Registration 20 Sub-Activity 1.4 Technical Assistance for Land Profiling for Commercial Use 21

Activity 2: INVESTMENT PROMOTION STRATEGY 21 Sub-Activity 2.1 Develop Investment Promotion Opportunities and Targeting Strategy 21

Investment Promotion Strategy Framework 21 Gako Beef Project – Feasibility Study and Business Plan 22 RDB Investment Accelerator 23

Sub-Activity 2.2 Match Commercial Blocks of Land with Investment Opportunities 25 Sub-Activity 2.3 Special Case Study—Irrigation Scheme Marketing 26 Sub-Activity 2.4 Special Case Study—Export Commodity Aggregation Services 26

Activity 3: INVESTMENT PROMOTION INFORMATION AND TOOLS 27 Sub-Activity 3.1 Develop an Agriculture Investment Databank 27 Sub-Activity 3.2 Develop an Agriculture Investment Handbook 28 Sub-Activity 3.3 Develop a Domestic Investor Pipeline 28 Sub-Activity 3.4 Develop a Membership Database for RCAL 28

Activity 4: SUPPORT FOR PPD PROCESSES AND INSTITUTIONAL STRENGTHENING 29 Sub-Activity 4.1 Support for PSF/RCAL PPD Processes 29 Sub-Activity 4.2 Support for Other Institution PPD Processes 31

Activity 5: EVIDENCE-BASED POLICY ANALYSIS 31 Activity 6: SUPPORT INSTITUTIONAL STRENGTHENING OF PRIVATE SECTOR ASSOCIATIONS 32 Activity 7: PILOT INSTITUTIONAL GOR CAPACITY BUILDING PROGRAMS 34

Sub-Activity 7.1 Pilot Investment Promotion and PPD Capacity Building 34 Sub-Activity 7.2 Pilot NAIPS Monitoring and Evaluation Capacity Building 35

Activity 8: TECHNICAL ASSISTANCE TO MINAGRI ISU AND RDB 36 Sub-Activity 8.1 MINAGRI Embedded Investment Advisor 36 Sub-Activity 8.2 RDB Embedded Investment Advisor (EIA) 37

2.2 OBJECTIVE 2: FACILITATE INCREASED PRIVATE SECTOR INVESTMENT TO UPGRADE VALUE CHAINS 40

2.2.1 SELECTION AND APPROVAL OF PRIVATE PARTNERS 41 VCCF Partnerships – 2015 RFA 41 Value Chain Competitiveness Fund (VCCF) Partnerships – 2016 Annual Program Statement (APS) 41 VCCF Partnerships – 2017 APS 41 VCCF Partnerships – 2018 APS 43

2.2.2 OBJECTIVE 2 ACTIVITIES 44 Activity 9: SUPPORT PRIVATE SECTOR ACCESS FINANCE FOR AGRICULTURE INVESTMENT 44

Sub-Activity 9.1 Support Agro-SMEs Access to Finance 44 Sub-Activity 9.2 Facilitate Access to Finance for Farmers through Cooperatives and MFI Partners 44

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Activity 10: BUILD THE CAPACITY OF FINANCIAL INSTITUTIONS TO INCREASE AGRICULTURE LENDING 46

BRD – Increase Lending to Private Sector in Agriculture 46 Duterimbere MFI – Access to Finance for Smallholder Farmers 46 Technical Assistance to Banks and MFIs 47

Activity 11: INCREASED PROVISION OF AGRICULTURE INSURANCE 49 Activity 12: LEVERAGING CO-INVESTMENT THROUGH THE VALUE CHAIN COMPETITIVENESS FUND (VCCF) 49

Sub-Activity 12.1 Support Agro-SMEs Investing in Capital Assets 49 Sub-Activity 12.2 Support Investments that Increase Private Supply of and Farmer’s Access to Inputs and Services 50

Activity 13: TARGETED TECHNICAL ASSISTANCE TO LEVERAGE LARGER PRIVATE INVESTMENTS 52 Activity 14: PILOT NETWORKING AND PARTNERSHIP AMONG VALUE CHAIN ACTORS 54 Activity 15: PROFESSIONALIZATION AND QUALITY MANAGEMENT SYSTEMS FOR PRODUCERS AND AGGREGATORS 54

BDS/QMS Support to Cooperatives 54 PHH Equipment Grants for Maize and Horticulture Cooperatives 56 Support to Potato Collection Centers 56

Activity 16: SUPPORT FOR DATA DIGITIZATION ACTIVITIES 57 Activity 17: SEASONAL DEBRIEFS AND STAKEHOLDER ENGAGEMENT 58

3. MONITORING & EVALUATION AND CROSS-CUTTING THEMES 59 3.1 MONITORING AND EVALUATION 59

Performance Tracking and Reporting 59 Capacity Building for Private Sector Partners 59 Mid-Term Performance Evaluation 59 Use of ICT 59

3.2 SOCIAL INCLUSION 60 3.2.1 SOCIAL INCLUSION ACTIVITIES 60

Activity 19: Improving Access to Business Opportunities for Women, Youth, and People with Disabilities (PWD) 60 Activity 20: Developing and Implementing Social Inclusion Strategies 61 Activity 21: Internship Program for Youth, Women, and PWD in Agribusiness 61

3.3 COMMUNICATION 61 Marking and Branding 61 Media Coverage 62 Success Stories 63

3.4 CAPACITY BUILDING AND KNOWLEDGE MANAGEMENT 63 3.5 ENVIRONMENTAL COMPLIANCE 63

4. PARTNERSHIPS AND LINKAGES 65 4.1 DEVELOPMENT BANK OF RWANDA (BRD) 65 4.2 KENYA COMMERCIAL BANK (KCB) rwanda 65 4.3 MINAGRI-IFAD POST-HARVEST AND AGRIBUSINESS SUPPORT PROJECT (PASP) 65 4.4 ACCESS TO FINANCE RWANDA (AFR) 65 4.5 MINAGRI/CESB/RYAF 65 4.6 USAID RWAND HINGA WEZE 65 4.7 EAST AFRICA TRADE AND INVESTMENT HUB (EATIH) 66

ANNEXES 67 ANNEX I: SUPPORT PROVIDED TO PRIVATE SECTOR BY PSDAG EIA AT MINAGRI 67 ANNEX II: TYPE OF TECHNICAL ASSISTANCE INVESTORS BY EIA AT RDB 68 ANNEX III: PRIVATE PARTNERSHIPS IDENTIFIED UNDER VCCF 69 ANNEX IV DETAILED PROGRESS BY COMPONENT 2 PARTNER 74 ANNEX V: PRESS RELEASES 75 ANNEX VI: MEDIA COVERAGE TRACKER 77 ANNEX VII: GOR Pilot Investment Promotion Capacity Building List of Attendees 79 ANNEX VIII: FY2018 STTA – Q3 (APRIL 2018 - JUNE 2018) 80

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ANNEX IX: ENVIRONMENTAL COMPLIANCE MONITORING REPORT 82 ANNEX X: MAP OF PSDAG PROJECT INTERVENTIONS 83 ANNEX XI: LIST OF COOPERATIVES FACILITATED ACCESS TO NEW MARKETS 84 ANNEX XII: FY2018 PSDAG INDICATOR RESULTS METRICS – Q3 85

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LIST OF TABLES

TABLE 1. Q3 OBJECTIVE 1 MILESTONES 3 FIGURE 2: PROPOSED EXPORT AGGREGATION BUSINESS MODELS 11 TABLE 2: VALUE CHAIN ISSUES IDENTIFIED AND CATEGORIZED BY NATIONAL AND DISTRICT LEVELS 13 TABLE 3: ISSUES DISCUSSED, AND RESOLUTIONS MADE DURING DIALOGUE SESSIONS MUSANZE AND RUBAVU

DISTRICTS 14 TABLE 4: SCOPE OF GRANT PARTNERSHIPS WITH PRIVATE ASSOCIATIONS 17 TABLE 5: UPDATE BY THE NATIONAL TASK FORCE FOR AGRICULTURE AND FOOD SECURITY 21 TABLE 6. SUMMARY OF FY2018 Q3 RESULTS FROM PSDAG GRANT ACTIVITIES BY VALUE CHAIN 23 TABLE 7. PSDAG 2017 ANNUAL PROGRAM STATEMENT PROGRESS TO DATE 26 TABLE 8: LIST OF COOPERATIVES REQUESTED LOANS FOR THE SEASON 2019-A 27 TABLE 9: LIST OF BANKS AND MFIS TRAINED DURING Q3 29 TABLE 10: REQUIRED TECHNICAL ASSISTANCE BY MFIS 30 TABLE 11: SUMMARY OF BDS AND QMS COACHING RESULTS IN Q3 37 TABLE 12: LIST OF COOPERATIVES FACILITATED TO GET LOANS FROM FINANCIAL INSTITUTIONS 37 TABLE 13: TRANSACTIONS BY IRISH POTATO COOPERATIVES 39 TABLE 14. CAPACITY BUILDING ACTIVITIES SUPPORTED BY PSDAG THROUGH ITS PRIVATE PARTNERS 46

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ABBREVIATIONS

ACPER Association of Cassava Processors and Exporters of Rwanda

AfDB African Development Bank

AFR Access to Finance Rwanda

AGOA African Growth and Opportunity Act

Agri-PPD Agricultural Public Private Dialogue

Agri-SME Agricultural small and medium enterprise

AIF African Improved Food

AKF Aga Khan Foundation

ALIS Agricultural Land Information System

APS Annual Program Statement

ASWG Agriculture Sector Working Group

B2B Business-to-Business

BABC Bugesera Agribusiness Company

BDF Business Development Fund

BDS Business Development Services

BPR Banque Populaire du Rwanda

BRD Banque Rwandaise de Developpement (Rwanda Development Bank)

CBO Community-based organization

CEO Chief Executive Officer

CESB Capacity Development and Employment Services Board

CIAT International Center for Tropical Agriculture

CIP International Potato Center

CMFC Cyohoha Modern Farming Company

COP Chief of Party

CPP Cooperative Professionalization Program

CSO Civil Society Organization

CSS Credit and Savings Society

DCOP Deputy Chief of Party

DEC Development Experience Clearinghouse

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DOC Day-Old Chicks

DPs Development Partners

DRC Democratic Republic of Congo

EAGC East Africa Grain Council

EATIH East Africa Trade and Investment Hub

EAX East Africa Exchange

EDC Education Development Center

EIA Embedded Investment Advisor

EMMP Environmental Mitigation Monitoring Plan

ENAS Enterprise Nkubiri & Sons

ERR Environmental Review Reports

EUCORD European Cooperative for Rural Development

FAO Food and Agriculture Organization of the United Nations

FDI Foreign Direct Investment

FFD Farmer Field Day

FFS Farm Field School

FI Financial Institution

FSP Financial Services Provider

FTF Feed the Future

FTFMS Feed the Future Monitoring System

FY Financial year

GAP Good Agriculture Practices

GCC Growth Consultants for Change Rwanda Ltd

GOR Government of Rwanda

GPS Global Positioning System

GSA Green Systems Africa

GSI Gender and Social Inclusion

ha Hectare

HACCP Hazard Analysis Critical Control Point

HD Huguka Dukore

HGT Holland Green Tech

HR Human Resources

HRP Health Regimen Products

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ICT Information and Communication Technology

IFAD International Fund for Agriculture Development

IMO Institute for Marketecology

INES Institut d'Enseignement Supérieur

IRG International Resources Group

ISU Investment Support Unit

JV Joint Venture

KBP Karisimbi Business Partner

KCB Kenya Commercial Bank

KCP Kinazi Cassava Plant

kg Kilogram

KSAP Kagerero Sustainable Agricultural Project

LDNF Land Degradation Neutrality Fund

LSP Local Service Provider

M&E Monitoring and Evaluation

MCC Milk Collection Center

MINADEF Ministry of Defense

MINAGRI Ministry of Agriculture and Animal Resources

MINALOC Ministry of Local Government

MINECOFIN Ministry of Finance and Economic Planning

MINICOM Ministry of Commerce Trade and Industries

MINIFRA Ministry of Infrastructure

MINIMEX Les Minoteries Industrielles Import-Export

MIS Management Information System

MMPD More Maize per Drop

MOU Memorandum of Understanding

MRR Microenterprise Results Reporting

MSME Micro/Small and Medium Enterprises

NAEB National Agricultural Export Development Board

NAIPS National Agribusiness Investment Promotion Strategy

NATC National Technical Committee

NBG Ndiyo Business Group

NCCR National Cooperatives Confederation of Rwanda

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NIRDA National Industrial Research and Development Agency

NSAR National Seed Association of Rwanda

OCA Open Capital Advisors

OPV Open-Pollinated Variety

PASP Post-Harvest and Agribusiness Support Project

PCC Potato Collection Center

PEBEC Producing and Export Bird’s Eye Chili

PIC Purdue Improved Crop

PPD Public-Private Dialogue

PPP Public-Private Partnership

PSDAG Private Sector Driven Agricultural Growth

PSF Private Sector Federation

PSTA IV Strategic Plan for the Transformation of Agriculture, Phase IV

PWD People with Disabilities

QMS Quality Management System

RAB Rwanda Agricultural Board

RALIS Rwanda Agriculture and Livestock Inspection and Certification Services

RCA Rwanda Cooperative Agency

RCAL Rwanda Chamber of Agriculture and Livestock

RDB Rwanda Development Board

REMA Rwanda Environmental Management Authority

RFA Request for Applications

RFP Request for Proposals

RGCC Rwanda Grains Cereals Corporation

RLMUA Rwanda Land Management and Use Authority

RMI Rwanda Management Institute

RPPDS Rwanda Public-Private Dialogue Secretariat

RSB Rwanda Standards Board

RTI RTI International

RWF Rwandan franc

RYAF Rwanda Youth in Agribusiness Forum

SACCO Savings and Credit Cooperative

SAF Spatiotemporal Apps Framework

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SAIS Smart Agriculture Information System

SAYFC Scottish Association of Young Farmers Club

SID Strategic Investment Department

SMEs Small and medium enterprises

SMS Short Message Service

SOW Statement of Work

SPF Seed Potato Fund

SPIU Single Project Implementation Unit

SPU Safe Pesticide Use

STTA Short-Term Technical Assistance

SUAP Safe User Action Plan

t Metric ton

TASCO Tapioca Starch Company

TOT Training of Trainers

UDI Union pour le Développement Intégré

USAID United States Agency for International Development

USD United States Dollars

USSD Unstructured Supplementary Service Data

VCCF Value Chain Competitiveness Fund

WEAI Women Empowerment in Agriculture Index

WFP World Food Program

YEF Young Entrepreneurs Fellows

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1. EXECUTIVE SUMMARY The Private Sector Driven Agricultural Growth (PSDAG) project is a five-year (August 2014–August 2019) USAID-funded initiative implemented by RTI International. The goal of PSDAG is to increase incomes of smallholder farmers by promoting private sector investment through two complementary objectives:

(1) to assist the Government of Rwanda (GOR) to increase private sector investment, and (2) to facilitate increased private sector investment by upgrading agricultural value chains.

This is the Quarterly Progress Report for fiscal year (FY) 2018 for the period April 1, 2018–June 30, 2018. The report covers: Project Performance by Objectives; Monitoring and Evaluation (M&E) and Cross-Cutting Themes (including Social Inclusion); and Partnerships and Linkages.

Achievements under Objective 1: Under this objective, PSDAG supports government efforts in increasing private sector investments. PSDAG continues to work closely with the Ministry of Agriculture and Animal Resources (MINAGRI), the Rwandan Development Board (RDB), National Agricultural Export Development Board (NAEB), Private Sector Federation (PSF) and the Rwanda Development Board (RDB). During Quarter 3 (Q3) of FY2018, PSDAG made progress on the following agricultural business-enabling environment policies and strategies:

● Continued to provide technical assistance to MINAGRI to review and upgrade the Agricultural Land Information System (ALIS);

● Provided technical assistance to MINAGRI to develop land use management guidelines;

● Provided technical assistance to the GOR to design a farmer registration system; ● Provided technical assistance to RDB to conduct a feasibility study and business

plan for the Gako Beef Project; ● Finalized technical assistance to NAEB on developing export commodity

aggregation services models; ● Provided technical assistance to the Investment Promotion Coordination

Committee on investment strategies for the 7 prioritizes sectors; and, ● Supported PSF to implement the National Agricultural Public-Private Dialogue

(Agri-PPD) Framework.

In addition to these policies, strategies, frameworks, and guidelines, the project made progress on other initiatives to support the investment promotion framework as discussed below:

● PSDAG subcontracted Boston Consulting Group (BCG) to accelerate private sector investment in Rwanda. BCG is supporting RDB by identifying strategic priorities for investment facilitation, development of an investment pipeline, and providing institutional capacity building. ● PSDAG signed grant agreements with three private associations; the National Seed Association of Rwanda (NSAR), the Association of Cassava Processors and

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Exporters of Rwanda (ACPER), and the National Cooperatives Confederation of Rwanda (NCCR). These partnerships will facilitate provision of technical assistance to strengthen institutional capacity of private associations. ● PSDAG signed an MOU with the Rwanda Management Institute (RMI) to collaborate in the implementation of the pilot GOR Investment Promotion Capacity Building Program.

● PSDAG supported government efforts to increase private sector investments through the support of two EIAs at MINAGRI and RDB. The advisors assisted in investment promotion and privatization activities with interested new investors, provided after-care support to current investors, and provided technical support to privatization activities for various MINAGRI flagship projects.

Achievements under Objective 2: Under Component 2, RTI continued to leverage a Value Chain Competitiveness Fund (VCCF) and technical assistance to catalyze relationships between investors, financial institutions, and value chain actors to demonstrate and increase adoption of value-enhancing innovations and reduce risk associated with private sector investment in agriculture. A dedicated portion of the fund is reserved for grants that support women, youth, and persons with disabilities (PWD) and PSDAG finalized selection of eight (8) partners who will receive support under this program. During this reporting period, PSDAG signed $210k in grants under Component 2 (C2), which leveraged $780k in private investment. The project continued to monitor and support 55 Agri-SME partnerships under the VCCF (14 signed in Q3), 60 partnerships under the Cooperative Professionalization Program (CPP) for the digitalization and professionalization of cooperatives and its partnership with the International Potato Center (CIP). In addition, PSDAG continued to provide business development services to leverage larger private investments and build the capacity of financial institutions to increase agriculture lending.

Progress on implementation of M&E and Cross-Cutting Activities is reported under Section 3. Under PSDAG’s Social Inclusion program, significant progress was made during Q3: grant agreements were signed with seven agri-businesses owned by women, youth and PWD; a new cohort of 36 SMEs under VCCF program began training and coaching under the Gender and Social Inclusion (GSI) curriculum piloted in FY2017; PSDAG launched its internship program for youth, women and PWD in partnership with MINAGRI, the Rwanda Youth in Agribusiness Forum (RYAF) and the Capacity Development and Employment (CDE). Progress on partnerships and linkages with other partners is discussed under Section 4.

Challenges: PSDAG’s technical assistance to the GOR to upgrade and operationalize ALIS

Q3 aggregate results from all of PSDAG’s partnerships with the private sector are as follows:

$2,554,589 gross income for 34,766 farmers (9,118 women) $2,794,720 in new capital investments $478,485 in exports of agricultural products $1,025,326 in incremental sales (collected at farm level) $3,290,383 in value-added domestic sales 185 new jobs (86 filled by women) created by PSDAG private sector partners $2,407,468 in loans and credit to upgrade agricultural business models.

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was faced with the challenge of access to the digital spatial data for private parcels to be uploaded onto ALIS II management application. There are still counterpart staffing constraints (MINAGRI and RDB) to ensure sustainability and effectiveness of technical assistance provided by PSDAG, though MINAGRI has received approval for their staffing plan and will begin the hiring process in Q1 of FY2019. Under Objective 2, implementation of nine grant activities are behind schedule due to various reasons including inability to raise cost-sharing funding (from banks) and challenge of getting construction permits among others.

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2. PROJECT PERFORMANCE 2.1 OBJECTIVE 1.1: ASSIST GOR TO INCREASE PRIVATE SECTOR INVESTMENT 2.1.1 OBJECTIVE 1 MILESTONES AND PARTNERSHIPS Table 1 presents progress on PSDAG’s assistance to the GOR to increase private sector investment. PSDAG supported eight agricultural business-enabling environment policies, strategies, frameworks, and/or guidelines, which are at various stages of completion.

Table 1. Q3 Objective 1 milestones Policy, strategy, framework, and guideline A C/V D/R A/P I 1. Agricultural Land Information System (ALIS) X X 2. Land Use Management Guidelines X X 3. Farmer Registration/Land Profiling System X X 4. Gako Beef Project – Feasibility Study and Business Plan X 5. Export Commodity Aggregation Services Model X x 6. Investment Promotion Strategy Framework X 7. Investment strategies for the 7 prioritizes sectors x 8. Pilot National Agricultural Public-Private Dialogue (Agri-PPD)

Framework X

A = Analysis C/V = Consultation/Validation D/R = Draft/Revision A/P = Approval/Publication I = Implementation

In addition to these policies, strategies, frameworks, and guidelines, the project made progress

on other initiatives to support the investment promotion framework as discussed below:

● PSDAG subcontracted BCG to accelerate private sector investment in Rwanda. BCG is supporting RDB by identifying strategic priorities for investment facilitation, development of an investment pipeline, and providing institutional capacity building.

● Under PSF/RCAL partnership, RCAL conducted Agri-PPD events in Gasabo, Nyaruguru and Nyagatare districts. During these dialogue events, stakeholders identified several issues which were discussed, and resolutions suggested. RCAL and champions will subsequently follow-up on the implementation of Agri-PDD resolutions.

● In addition to RCAL, PSDAG signed grant agreements with three additional private associations; NSAR, ACPER and NCCR. These partnerships will facilitate provision of in-kind technical assistance to strengthen institutional capacity of private associations. PSDAG started to provide technical assistance and capacity building to private associations to enhance their capacity to engage with government and develop strategic documents (strategic plans, financial sustainability strategies).

● PSDAG signed an MOU with the Rwanda Management Institute (RMI) to collaborate in the implementation of the pilot GOR Investment Promotion Capacity Building Program. 27 GOR staff (11 women) from NAEB, MINAGRI, MINALOC, RDB and PSF have been

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enrolled in the training program which is underway and expected to be completed by August 2018.

● An additional training and mentorship was done for 7 staff coming from MINAGRI, NAEB, RDB and MINICOM to develop investment targeting strategies for the prioritized sectors.

PSDAG supported government efforts to increase private sector investments through the support of two EIAs at MINAGRI and RDB. The advisors assisted in investment promotion and privatization activities with interested new investors, provided after-care support to current investors, and provided technical support to privatization activities for various MINAGRI flagship projects.

2.1.2 OBJECTIVE 1 ACTIVITIES ACTIVITY 1: INFORMATION ON LAND FOR COMMERCIAL INVESTMENT Sub-Activity 1.1 Agriculture Land Information System (ALIS) II

During FY2016 and FY2017, PSDAG supported MINAGRI to develop ALIS (phase 1), a web-based Investor Application (Investor App)1 to enable MINAGRI and private sector to identify public land parcels that could meet the demands of prospective investors.

During FY2018, under a subcontract with Esri Rwanda Ltd., PSDAG is supporting MINAGRI to improve and expand the functionality of ALIS. PSDAG and MINAGRI have made the following progress toward developing ALIS II:

● Integrating of available climate and satellite data has been integrated into ALIS – In Q1, PSDAG facilitated MINAGRI to access the Map Room Web Services for ALIS II. The integration of the Map Room data was done via a web-service, removing the requirement that MINAGRI manually download and re-upload Meteo’s Map Room data. This will make the maintenance of this data in ALIS II much easier.

● Uploading private sector parcels and development of a private Management Application - In Q2, MINAGRI submitted a letter to Rwanda Land Management and Use Authority (RLMUA) requesting the most recent version of the digital spatial data for six million private parcels, which Esri will upload onto ALIS II. During Q3, Esri continued to engage RLMUA and is still waiting to get access to the digital spatial data for private parcels to be uploaded onto ALIS II Management Application. Esri found out that there were web services that could be used to facilitate MINAGRI’s access to RLMUA’s data through the development of a query defining which parcels to get from RLMUA (e.g. all parcels for agricultural use). While the web services have not yet been tested, the query still needs to be developed and MINAGRI will need to get access to the server at the National Data Center (probably via VPN). From a technical point of view, the exchange of parcels via web services is the correct way to go, and the only way of ensuring a sustained exchange in the future. MINAGRI is working with RLMUA to get the data using VPN. The IT Managers of the two institutions are working to upload the data on MINAGRI VPN by early Q4, 2018.

1 http://www.minagri.gov.rw/investorapp/

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● Training districts staff in the use of the Investor Application: In Q2, MINAGRI recruited a new staff assigned to ALIS II and was inducted by Esri on the use of the Investor App. This staff member is the MINAGRI GIS Specialist, is a permanent part of the IT Department, and replaced the former GIS Specialist who left in September 2017 to pursue a Master’s degree. Under SAIS, MINAGRI has received approval to hire an additional four staff that will be responsible for all programming under SAIS, including ALIS, and which will be run as a Single Project Implementation Unit (SPIU). It is expected that these four new staff will not be hired and on-boarded until Q1 or Q2 of FY2019. During Q3, Esri conducted a capacity building needs assessment on the use of the Investor App for the newly recruited GIS Specialist; the training was set to start in May 2018 but postponed to August 2018.

In order to ensure sustainability of ALIS beyond PSDAG project, PSDAG supported MINAGRI to develop the Smart Agriculture Information System (SAIS)2 project for which they received funding from the Ministry of Finance for fiscal year 2017-2018. SAIS will be implemented by MINAGRI’s Single Project Implementation Unit (SPIU). During Q3, a staffing structure for four new technical staff members to undertake SAIS activities was approved. The new staff will be hired during Q4.

Sub-Activity 1.2 Land Use Management Guidelines The goal of this activity is to help the GOR facilitate investor access to information regarding

available public land for sublease and establish a clear, consistent, and transparent process for reviewing and processing lease applications in a timely manner.

In Q2, PSDAG subcontracted Growth Consultants for Change Rwanda (GCC Ltd), a firm that will assist the GOR in developing the criteria, guidelines, and processes for managing public land concessions and private land demarcated for agricultural use according to Rwandan law. GCC conducted a legal review, interviews and focus group discussions and produced a draft report titled “A guide to Agricultural Land Acquisition in Rwanda,”.

During Q3, GCC continued to work on PSDAG’s and MINAGRI’s feedback on the draft report which is expected to be finalized by early Q4, 2018. The consultant (GCC) is also expected to produce Quick Reference Guides (QRG) which will focus on the main types of transactions, requirements, timeline and fees required to acquire agricultural land; the QRG are expected to be the “go to” documents for anyone interested in acquiring agricultural land.

Sub-Activity 1.3 Technical Assistance for Farmer Registration PSDAG is providing technical assistance to MINAGRI for the design of its farmer registration

system, assisting them to identify and assess technologies and systems for collecting farmer registration information and linking this system to other GOR databases. The information will not only be useful to help GOR verify and monitor subsidy programs,but may also be used to provide additional information to investors looking to partner with or sublease land from smallholder farmers.

In Q2, PSDAG subcontracted Moonshot Global to provide technical assistance to MINAGRI on the design of the system, including the most appropriate ICT technologies and systems for 2 SAIS comprises the ALIS and a comprehensive data system that would harmonize other MINAGRI online data sources such as Management Information System (MIS), e-Soko, and Rwanda Online.

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collecting farmer registration information and linking this system to other GOR databases to maximize efficiency, ensure ease of use, and minimize costs. The consultant conducted interviews with key stakeholders to identify expectations of end users, international best practices and potential state-of-the art solutions that can be adapted to the local context. Moonshot submitted an inception report including preliminary findings in terms of existing systems, challenges and some recommendations on some key features of the Farmer Registry.

During Q3, Moonshot finalized the inception report after a presentation to the Agriculture Sector Working Group. In addition, on June 5, 2018, MINAGRI conducted a farmer registration and land profiling co-creation workshop involving all key stakeholders and potential partners. The workshop was scheduled on June 5, 2018 and about 35 people from GOR, Private Sector, NGOs and Development Partners participated in the event. A final report and design will be completed in early Q4.

Sub-Activity 1.4 Technical Assistance for Land Profiling for Commercial Use Moonshot Global, the firm selected to provide technical assistance to MINAGRI for farmer

registration (see Sub-Activity 1.3) is also supporting the Ministry to design a technologically advanced and appropriate system to profile land use and to then link this system to other GOR databases. However, the development of this system will be the responsibility of MINAGRI under SAIS. The system will address the challenges that investors are facing in identifying available commercial blocks of land quickly, which may include combinations of public and private land available for lease. The outcome of activity will be reported together under Sub-Activity 1.3 above in Q4.

ACTIVITY 2: INVESTMENT PROMOTION STRATEGY Sub-Activity 2.1 Develop Investment Promotion Opportunities and Targeting Strategy Investment Promotion Strategy Framework

PSDAG, through an Investment Promotion and Facilitation Strategy Specialist, is providing technical advisory support to RDB and other relevant GOR ministries and agencies to work together on a proactive, targeted investment promotion strategy framework to attract domestic and international investors. This envisaged strategy is expected to reposition the resources of RDB and its government partners to proactively target foreign and domestic investors.

In Q1, PSDAG assisted RDB to conduct a benchmarking analysis of Rwanda’s relative investment attractiveness to its regional competitors for foreign direct investments (FDI). PSDAG developed a methodology for sector (value chain) selection, which contains selection criteria to shortlist 5–10 priority sectors for investment promotion from a long list of 29 sectors currently promoted by the GOR across agencies. The 4 key institutions that currently promote agriculture investments selected the top 5 and bottom 5 sectors among the 29. The results were consolidated, and sectors were ranked accordingly. In addition, PSDAG developed market data sheets for each sub-sector to be considered for shortlisting. Further, PSDAG updated RDB’s corporate presentation and introductory investor presentation. These presentations showcase RDB’s services for investors and benchmark Rwanda’s performance against the East Africa region.

In Q2, using the newly designed selection methodology, PSDAG finalized the shortlist of the selected sub-sectors for targeted investment promotion. The list was submitted to RDB for comments and feedback. RDB engaged other key GOR institutions involved in agriculture

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investment promotion to gather their inputs on selected sub-sectors. During Q3, the Investment Promotion Coordination Committee (IPCC) validated the proposed

selected sub-sectors. The validation meeting was attended by the CEO NAEB, PS MINICOM, Head of RDB's Investment Promotion and Facilitation Department, PSDAG and other staff from RDB. The IPCC approved seven priority sectors including the six that were previously recommended by PSDAG’s consultant (meat processing, coffee roasting & packaging, high-value horticulture, specialty teas, floriculture, fisheries, fish processing) and dairy processing.

As a follow up activity to the sub-sectors selection, PSDAG organized a training on investment promotion strategy development, targeting investor markets, profiling investors, and designing promotional materials for nine staff from RDB, MINICOM, MINAGRI, NAEB and Boston Consulting Group (BCG). The first training was conducted on April 30, 2018 and focused on tailoring investment promotion strategies needs to each specific sector and investment target group and conducting joint investment promotion activities as IPCC members, with the same priority sectors, the same messaging, and the same materials, which allows them to manage resources more efficiently and create greater impact. A second training and coaching session took place in May 2018, the technical members of the IPCC started developing the seven investment strategies and action plans for the approved priority sectors with mentorship provided by PSDAG Investment Promotion and Facilitation Strategy Specialist. It is expected that the strategies will be completed by July 2018. Gako Beef Project – Feasibility Study and Business Plan

PSDAG is providing h technical assistance to RDB through a New Zealand consultancy firm to conduct a livestock and meat processing study for RDB’s Gako Beef Project. The aim of the study is to provide business information for foreign investors interested in upgrading the project by adding processing, but also to provide the 13 domestic investors with recommendations for how their own investments can be improved.

In Q2, the Gako Beef project consultants had submitted a draft report on Gako Beef feasibility study and business plan, including a new structure for the consolidated management of the farm to efficiently supply the processing facility, as well as details of the financial model.

During Q3, from April 23-27, 2018, PSDAG COP, together with the Livestock Expert consultant participated in the Global Agriculture Investing Conference (GAIC), in New York, where they presented the Gako Beef project to different international investors in a view to gather feedback and raise interest on the project. The conference attracted more than 700 people from more than 300 organizations; people looking for assets to invest in, and people with assets seeking investment including private companies (agriculture industry and ICT); institutional, impact and venture capital investors; brokers/advisors; family offices; land brokers; asset and investment valuation; international development finance (IFC, AfDB, FMO); lawyers.

On April 24th 2018, PSDAG held discussions with over 50 GAIC participants and followed up by sending the promotional materials to get specific feedback. PSDAG also shared investors’ feedback with RDB as follows:

● In the short term, target impact investors, family offices in Africa and Europe; include an expert management company, depending on the skills of the impact investor; work with IFC/AfDB/CDC for funding if needed as a partner to the impact investor; and pitch Gako Beef project to IMSAR, and AgDevCo in Rwanda.

● In the medium to long term, attend key investor conferences in USA, Africa, Europe, and

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Asia. Also during Q3, Gako Beef Project consultants submitted a revised feasibility study and

business plan incorporating comments received during the investors’ conference. The consultants looked at 7 business model scenarios with farm-only upgrades and scenarios adding processing and feedlots; most were not profitable based on costs and current market conditions; two of the models had negative financial returns and the others had tradeoffs based on cost and ownership scenarios; the recommended models:

● Farm development only; assumes farms run as one combined entity run by a management company and [REDACTED] individuals get shares (title of land, livestock transfers to management company). Upgrade the carrying capacity of the [REDACTED]ha of land to produce more volume of livestock for sale at current market prices. No value added to meat. Estimated investment cost of US [REDACTED] required to upgrade and optimize production of the farm.

● Build a high-quality meat processing plant, integrated with farm development; managed under one entity fully integrated on [REDACTED] ha ([REDACTED] investors bought out or given shares); investors maintain title of land, stock, and plant. Estimated cost of the meat plant is US $[REDACTED]; by scaling down, the minimum investment for an international standard plant that has the required scale is estimated to be around $[REDACTED], with all new equipment.

● Feedlot development integrated with high quality meat processing plant; an intensive feedlot is likely to be required eventually on the [REDACTED]-ha block; the report recommends that the supplementary feeding system is developed on the farm to optimize productivity and that feed stuffs should be grown wherever possible on farm to reduce costs. This should be done once markets are developed for higher value chilled beef cuts and goat meat, to enable the supply chain to be controlled, to ensure consistency in volume and quality of stock supplied for slaughter.

The report will be presented before end of July 2018, to the ministers of Agriculture and Animal Resources, Infrastructure, Defense, and Trade and Industry.

After validation of the Feasibility Study and Business Plan, the consultants will also update promotional materials and targeting strategy to be used to pitch investors.

RDB Investment Accelerator PSDAG subcontracted BCG to implement RDB Investment Accelerator project. The overall

objective of activity is to accelerate private sector investment in Rwanda building on a prior BCG’s partnership with the RDB which has been ongoing since October 2017. Under this subcontract, BCG is providing technical assistance to RDB on strategic priorities for investment facilitation, investment pipeline development and institutional capacity building. Progress on

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implementation of RDB Investment Accelerator:

● Continued to refine the investment propositions and opportunities of focus for the 4 priority sub-sectors (nutritious foods, garments, BPO and knowledge hub). Started to identify opportunities for new sub-sectors (e.g., manufacturing, agriculture).

● Continued to refine the investment pipeline development (identification, reach out, advancing discussions). As a result of pipeline building and advancement activities, 104 companies have been added to the pipeline:

o Nutritious foods: +65 companies added to the pipeline

o Light manufacturing: +9 companies added to the pipeline

o Knowledge hub: +1 company added to the pipeline

o BPO: +8 companies added to the pipeline

o Agri- supply chain 1: +12 companies added to the pipeline

o Construction materials: +9 companies added to the pipeline

● Started to develop pitch documents including:

o Developed a new overall “Invest in Remarkable Rwanda” country pitch deck.

o Finalized pitches for initial sectors: in food & agriculture (esp. dairy & poultry), garments (affordable luxury), knowledge hub (ICT and tourism & hospitality training).

o Started working on Pork pitch deck.

● Started to provide support on most advanced discussion (detailed data collection, proposal analysis and review, drafting of Cabinet Papers, alignment with GOR, etc.)

● Conducted on-the-job training and coaching on analysis of investment proposals and tracking and reporting progress, to 17 RDB staff (7 women).

● Supported to prepare for RDB missions abroad (e.g., Viva Technology Forum in May 2018, and an upcoming visit to Morocco in July 2018).

Two substantial changes were made to the focus of the four priority sub-sectors as follows:

1. Nutritious Foods: During this reporting period the focus of the sector was adjusted a. As a consequence of the extent to which the aflatoxin problem is affecting the

Training and coaching of RDB staff on accelerating private sector investments, June 2018 (Photo by BCG)

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maize supply chain, all product categories using maize as a key raw material have been put on hold by the Accelerator until the problem is resolved (which BCG is working to address with MINAGRI, PSDAG, and others):

b. Non-poultry meat (beef and pork), aquaculture and horticulture have been added in replacement to the Accelerator’s food scope;

c. In addition, key agricultural supply chain topics have been added as a separate sub-sector (crop sourcing for trade, seeds and fertilizers, irrigation and mechanization) to support the strengthening of Rwanda’s agricultural and food processing sectors;

2. Garments: Steering Committee #3 (May 17th, 2018) lead to lowering the focus on garments based on analyses that showed the current unfavorable context for garments in Rwanda. The decision was made to integrate garment in a new, wider accelerator stream on Light Manufacturing

a. Rwanda not cost competitive (especially with respect to transport for the large scale global market);

b. Limited market potential for low cost, nearby markets and already 5 to 10 interested and/or active players;

c. Risky to pitch affordable luxury opportunity due to Africa Growth and Opportunity Act (AGOA) situation whereby the US has suspended these benefits for Rwanda.

The next interim report for BCG is due July 30, 2018 and there are four key types of activities that are planned:

1. Complete company profiles and outreach of initial list of investors, follow through on discussions and complete transition of the 4 sectors and its pipeline to the RDB team including completing capacity building training for RDB point persons on these work streams;

2. Engage in negotiations and deal structuring support; 3. Complete support in upcoming investor events (esp. Morocco visit scheduled July 12-

13th); and 4. Identify aftercare or cross cutting policy issues and develop a plan across government

on escalating and addressing issues. As per now, the identified issues cover: funding sources for training providers, non-trade barrier issues, and continuing to push forward potential options to support in finding solutions for aflatoxin contamination (e.g., of maize).

The final and full report for the BCG subcontract will be due at the end of Q1 FY2019.

Sub-Activity 2.2 Match Commercial Blocks of Land with Investment Opportunities Results of Sub-Activities 1.2 and 1.4 are pre-requisites for achievement of the outcomes of this

activity. Concurrently, the PSDAG EIA at MINAGRI continued working on the development of a database aimed at matching potential investors with existing cooperatives/farmers who own large pieces of land have potential for large-scale investments. This will inform the different partnership/models that can be leveraged, such as contract farming, sub-leasing, and joint ventures in agriculture.

In Q2, PSDAG EIA at MINAGRI conducted a profiling of the top 20 irrigation schemes and large

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sizes of land to identify which ones would be matched with the top seven shortlisted agriculture sectors for proactive investment promotion.

Sub-Activity 2.3 Special Case Study—Irrigation Scheme Marketing In Year 4, based on investment opportunities identified by RDB and based on having a process

in place for the private sector to access public concessions, PSDAG will assist MINAGRI and RDB in developing a turnaround marketing strategy for up to two large irrigation schemes. These turnaround strategies can then be used by RDB to profile and market the opportunities to targeted investors.

This activity was dropped from PSDAG Y4 activities. The project was contingent on implementation of Sub-Activity 1.4, which has been delayed. In addition, due to the requested expansion of the analysis for the Gako Beef project by GOR under Activity 2.1, there is no remaining budget for this activity.

Sub-Activity 2.4 Special Case Study—Export Commodity Aggregation Services PSDAG is assisting NAEB to conduct an Airfreight Export Aggregation Services Feasibility

Study. The objective is to assess the demand for and scope of logistics management services to assist companies to reach export markets cost-effectively. PSDAG and NAEB will use this study to promote a business model (including a PPP proposal for NAEB)—and develop a five-year business plan, including market assessment, pro forma financial statements, indicators, and risk and mitigation analysis. The study is being conducted in partnership with assigned personnel from NAEB, and in consultation with SID at RDB. Outcomes of this technical assistance to NAEB are to develop and implement a business model for airfreight aggregation services in Rwanda.

In Q1, Export Commodity Aggregation Services study final report was shared with NAEB for input before validation. The report highlighted constraints associated with fresh produce export logistics in Rwanda and recommends some feasible private sector-driven schemes.

In Q2, a draft business model of airfreight aggregation services was presented to stakeholders (private sector and public institutions) in the horticulture value chain. Participants suggested that the business model should mostly be focused on two key activities: a) logistics services, including cold storage facilities and cold vehicles; and, b) a horticulture custom clearing company. The business model was subsequently revised to incorporate feedback from stakeholders.

During Q3, a final Export Commodity Aggregation Services study report was finalized, and a validation meeting was conducted in NAEB on June 7, 2018. The study proposed two business models for reducing logistics and airfreight costs from Rwanda:

Model 1: Fresh Produce Transport Management Services. The rationale for the business is to reduce the administrative burden associated with logistics management by exporters, allowing them to allocate a greater proportion of their time to higher “value adding” activities associated with running a successful horticulture export company. The business model includes establishing operator owned and hired fleet that matches the volume and availability requirements of exporters from the horticulture sector. Invest in an initial fleet of 4 operator owned vehicles to provide coverage for existing load volumes and load frequency from the horticulture sector. The estimated initial investment is RWF [REDACTED]with an estimated [REDACTED] year IRR of [REDACTED]%. Firms in the private sector have been identified who could run this model.

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Model 2: Customs Clearing Agency Established by Horticulture Export Association of Rwanda. The Horticulture Exporters Association of Rwanda (HEAR) can establish its own licensed and registered clearing agency. This agency would be owned by the members of HEAR, who would effectively be shareholders in the company. The opportunity for this business would be to pro-vide specialized clearing services dedicated to horticulture, and potentially in the longer term other perishable produce. The specialized nature of the service will speed up processing times by taking a more proactive approach to clearing goods, reduce the administrative burden for exporters and provide a generally overall better-quality service and user experience. It is expected that this service would significantly reduce the annual cost of clearing goods for horticultural exporters by redistributing the profits of the clearing agency back to members / shareholders at the end of each financial year. The effective discount on the cost of clearing goods is estimated to be in the range of between [REDACTED]% to [REDACTED]% depending on the efficiency of the agency and what cost clearly fees currently are set at. Initial investment is set at RWF [REDACTED]with an estimated [REDACTED]-year Internal Rate of Return (IRR) of [REDACTED]%.

During the validation meeting of the proposed service models, a recommendation was made to develop a third business model combining service model 1 and service model 2. The third model has been subsequently developed and included in the report submitted to NAEB.

Figure 1: Proposed export aggregation business models

ACTIVITY 3: INVESTMENT PROMOTION INFORMATION AND TOOLS Sub-Activity 3.1 Develop an Agriculture Investment Databank

PSDAG is supporting MINAGRI and RDB to create a centralized databank that both archives and links to the most up-to-date agriculture data frequently sought by investors. Information accessible through the databank may include links to agriculture statistics, trade data, current policies and strategies, publicly available feasibility and value chain studies, and pipeline of current investment opportunities. The databank is intended to be available to the public through the relevant GOR websites, although institutions may reserve portions of the databank for

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internal use only at their discretion. As with ALIS and the Agriculture Investment Handbook, it is intended that the lead institution housing the databank, either MINAGRI or RDB, will maintain it.

In Q2, based on best practices from Georgia, PSDAG revised and simplified the scope of work (SOW) to combine the Agriculture Investment Databank and the Agriculture Investment Handbook into an Agriculture Investment Information System with links to RDB systems.

In Q3, the revised SOW was discussed with RDB Communication and IT teams. The final SOW will be shared with RDB for validation by early July 2018; once approved, PSDAG will start the process of selecting a company or STTA to develop an Agriculture Investment Information System.

Sub-Activity 3.2 Develop an Agriculture Investment Handbook PSDAG is supporting the GOR to simplify the 2013 Investment Roadmap into an Agriculture

Investment Handbook. The new handbook will provide information to prospective investors about the investment process from the stage of investment attraction all the way to the operational implementation of the investment. This activity has been combined with Sub Activity 3.1.

Sub-Activity 3.3 Develop a Domestic Investor Pipeline In order to facilitate foreign investors to make investment decisions and partner with existing

investors, it would be ideal for RDB to maintain a current list or “pipeline” of successful domestic investors. PSDAG plans to assist RDB with either developing this list or upgrading old lists.

This activity has been dropped due to new emerging priorities from RDB and MINAGRI.

Sub-Activity 3.4 Develop a Membership Database for RCAL PFS/RCAL has identified that improving member management and communication is key to

improving the services it offers. To this end, PSDAG had planned to provide technical assistance to RCAL to identify the types of software and systems that exist that could help it consolidate a database of member farmers and agribusinesses, which includes 17 member-associations in Rwanda.

In Q2, Moonshot Global, the same firm subcontracted by PSDAG to provide technical assistance to MINAGRI for farmer registration and land profiling for commercial use (see Sub Activities 1.3 and 1.4) was also contracted to provide technical assistance to PSF/RCAL on the design of the membership database, including the most appropriate technologies and systems to use to build an interactive membership database. However, it was brought to PSDAG’s attention that GIZ had already started providing a comprehensive membership IT management system covering all Chambers and Associations, including RCAL, to PSF. PSDAG therefore decided to discontinue this activity to avoid duplication of efforts with GIZ technical assistance.

During Q3, a meeting between PSDAG, PSF/RCAL and GIZ was held to identify opportunities for collaboration in supporting PSF to build a membership database. Subsequently, GIZ supported PSF to develop the systems requirements and negotiate with the International Labor Organization (ILO) to build the basic system for PSF. In addition, GIZ is supporting PSF to collect data which will be used to populate and test the membership database. Based on the features of the systems and the gaps that may be identified as regards to RCAL needs, PSDAG will support RCAL to operationalize the system and link it to their M&E systems.

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ACTIVITY 4: SUPPORT FOR PPD PROCESSES AND INSTITUTIONAL STRENGTHENING Sub-Activity 4.1 Support for PSF/RCAL PPD Processes

PSDAG is supporting PSF/RCAL under the MOU and grant agreement partnership to: a) establish strategies aiming to effectively and efficiently sustaining the Rwanda Chamber of Agriculture and Livestock; b) establish the effective and efficient mechanisms to solve issues pertaining to agriculture and agribusinesses through the Agriculture Public-Private Dialogue (AgriPPD) process; and, c) support farmers and agribusinesses to access more remunerative markets.

In Q2, PSDAG and RCAL convened a meeting with the private sector to validate the Agri-PPD framework. The private sector was represented by the RCAL Board members (heads of 17 associations constituting RCAL) and PSDAG private partners. The Agri-PPD framework was then revised and finalized with technical support from PSDAG. In addition, RCAL conducted “Agri-PPD meet farmers” and AgriPPD planning sessions in Rubavu, Musanze, Nyaruguru and Nyagatare, during which 138 farmer representatives (37 women) from various value chains, facilitated by Agri-PPD champions, raised issues constraining the agriculture value chains in respective districts. Subsequently, the issues were prioritized, and planning sessions held by the champions.

During Q3, on April 10, 2018, RCAL conducted an “Agri-PPD meet community” session in Gasabo District during which several issues were raised and categorized for dialogue as detailed in the table below.

Table 2: Value chain issues identified and categorized by national and district levels Value chain District level National level

Maize ● Linking maize producers to the

markets

● Delay in inputs and seed distribution ● Lack of drying equipment and facilities ● Limited access to loan for farmers ● Lack of storage facilities ● Limited access to agriculture national

program since Gasabo is considered as an urban district.

Horticulture

● Lack of effective control of soil erosion that affect the marshlands used for vegetables production

● Marshlands management

● Substandard and expensive seeds and chemicals

● Limited access to irrigation scheme ● Limited capacity development in vegetables

production ● Lack of vegetables storage facilities ● Limited access to loan for vegetable

producers ● Long and expensive certification procedures

Banana ● Limited banana seed nurseries in

administrative sector.

● Lack of effective control of Banana Xanthomonas wilt (Kirabiranya)

● Issue of capacity development for banana producers

Livestock

Cows: ● Consequence and short time given

to farmers for shifting their livestock activities from sectors

● Limited access to chemical and artificial insemination seeds

● Limited access to improved dairy cows.

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that are not recognized by the Kigali Master Plan as for livestock production.

● Milk collection centers that are not operational.

● Delay of vaccination of Lumpy skin disease (Igifuruto)

● Insufficient milk collection centers

Poultry and Pigs: ● Linking farmers to markets ● Absence of slaughterhouse for

domestic animals

● Limited access to improved breeds of pigs ● Limited capacity development for chicken

and pig producers.

Agro-processing

● Issue of low production of raw materials

● Limited communication and dissemination of information among different institutions

● Bad condition of feeder roads

● Challenge of packaging materials ● Ineffective protection of the copy right trade

mark. ● Long and expensive certification procedures

Subsequently, planning sessions were held in three districts, Gasabo, Musanze and Rubavu, to organize the dialogue sessions which took place in two districts, Nyaruguru and Nyagatare. The key issue discussed in Nyaruguru was milk trading guidelines and its impact on price of milk at farmer level and the main issue discussed in Nyagatare was the Milk Collection Centers (MCCs) which were not functional. Resolutions were taken, and responsibility assigned. Follow up on implementation of the resolutions will be done by RCAL and the district champions in beginning July 2018.

In addition to dialogue sessions in Nyaruguru and Nyagatare districts, PSDAG also supported RCAL to conduct “dialogue sessions” in the districts of Musanze and Rubavu. Dialogue sessions are organized by local Agri-PPD champions, representatives from the public and private sector, and RCAL. The selected value chain issues identified during the planning sessions are presented for dialogue to seek resolutions. RCAL and champions will subsequently follow-up on the implementation of the resolutions. The table below summarizes the issues discussed, and resolutions made during the Musanze and Rubavu dialogue sessions held in May 2018.

Table 3: Issues discussed, and resolutions made during dialogue sessions Musanze and Rubavu districts

District Value chain issues Resolutions

Musanze

Non-compliance with maize minimum prices by farmers and traders. Reasons given were: ● Local stakeholders were not

involved in price setting. ● No system to monitor compliance

with pricing. ● Cooperatives are not functioning

well and thus not supporting compliance or buying all stock from farmers.

● Set/regulated prices do not apply to imports which are sold at lower prices.

● District invites MINAGRI to consult stakeholders when setting maize prices.

● District Cooperative Officers should assess level of functioning of cooperatives and propose capacity building measures.

● District agreed to put in place a system to monitor prices charged by different actors.

● District to conduct an event at the harvest to mobilize and create awareness on prices.

● Recommend to national level to also apply regulated prices to imports.

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Rubavu

Illegal selling of milk in contravention of the Ministerial regulation on collection, transport and selling of milk due to: ● High demand for milk in Goma,

DRC and thus, sellers are attracted by higher prices offered there.

● All MCCs are functioning in Rubavu but they are inadequate – 1 for 2 sectors and 1 per sector is needed.

● District, security organs, MCCs and PSF to put measures in place to monitor movement of milk across the DRC border.

● District to enforce certification of milk sellers in Rubavu town.

● PSF, MCCs and District agreed to organize a campaign to sensitize farmers and sellers on the milk Ministerial order.

● District, MCCs and PSF to conduct inspections of milk sellers in Rubavu town to ensure they are selling certified products.

Participants in a dialogue session in [REDACTED] District, May 11, 2018 (Photo by PSDAG staff) (Photo by PSDAG staff)

Sub-Activity 4.2 Support for Other Institution PPD Processes During Q2, PSDAG conducted a survey with its private partners to identify areas that required

PPDs. Access to finance and access to extension services were identified as key constraints that require PPDs.

During Q3, PSDAG, in collaboration with MINAGRI, RAB, AgriProFocus and USAID Hinga Weze project, PSDAG finalized all the arrangements for an extension workshop to be held on July 20th, 2018. Refer to Activity 14.

ACTIVITY 5: EVIDENCE-BASED POLICY ANALYSIS Through this activity, PSDAG will use feedback from PPD activities to prioritize project

resources (where needed) toward the analysis of agribusiness-enabling environment policies reform. PSDAG will work with the RPPD staff in charge of advocacy at PSF, and other relevant entities identified through the PPD process to conduct such analysis and create position papers. PSDAG will explore assisting those organizations with creative partnerships with local universities with policy programs that may be interested in assisting with policy analysis as part of their educational practicums.

In Q3, during the local Agri-PPD activities conducted in Rubavu, Musanze, Nyaruguru and

Participants in a dialogue session in

[REDACTED] District, May 10, 2018 (Photo by PSDAG staff)

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Nyagatare districts, key constraints affecting farmers in Irish potato and dairy value chains were identified (see Sub Activity 4.1). Issues identified during Agri-PPDs are being reviewed for deep analysis and field visits to Burera, Nyabihu and Musanze Districts are planned in the last week of July 2018 to collect quantifiable data and establish the magnitude of these problems. Some of these issues will be researched further as part of evidence-based advocacy.

ACTIVITY 6: SUPPORT INSTITUTIONAL STRENGTHENING OF PRIVATE SECTOR ASSOCIATIONS

In FY2017, PSDAG released a request for applications (RFA) for Institutional Strengthening for Private Sector Advocacy in Agriculture. The RFA targeted PSF/ the Rwanda Chamber of Agriculture and Livestock (RCAL) and its member associations, as well as civil society institutions that are not members of RCAL.

Apart from PSF/RCAL, four other associations submitted grant applications. These associations are the National Seed Association of Rwanda (NSAR), the Association of Cassava Processors and Exporters of Rwanda (ACPER), the National Cooperatives Confederation of Rwanda (NCCR), and the Federation of Maize Cooperatives in Rwanda (FCMR).

In general, the association requested technical assistance to strengthen their institutional capacity and ability to conduct advocacy on behalf of their members (private seed suppliers), develop strategy documents (strategic plan, membership strategy, and financial & admin procedures) and access certification services for their members.

Under the support institutional strengthening of private sector associations, in addition to piloting of PPD and advocacy, PSDAG is providing technical assistance and capacity building aimed at strengthening the functional and operational efficiency of business associations to engage with government in dialogue.

After a thorough evaluation process and due diligence, applications for RCAL (Q1), NSAR, ACPER and NCCR were accepted and approved (Q2) for award of grants. The grant application for FCMR was rejected based on the weakness of the proposal and budget constraints.

Rwanda Chamber of Agriculture and Livestock (RCAL) Under a grant agreement award signed on November 21, 2017, PSDAG is supporting RCAL

with in-kind technical assistance to develop strategy documents including membership strategy, financial sustainability strategy and M&E strategy. PSDAG also facilitates SMEs to exhibit their businesses and products at different trade fairs.

In Q1, PSDAG facilitated 10 SMEs to exhibit their businesses and products at the 2017 “Made in Rwanda” Trade Fair, an annual event organized by PSF. PSDAG and PSF/RCAL organized a workshop on quality certification at the “Made in Rwanda” Expo in partnership with other stakeholder institutions, including Rwanda Standards Board (RSB), the Ministry of Trade and Industry (MINICOM). More than 50 SMEs attended the event which covered information dissemination through presentations by stakeholder institutions, to SMEs participants (PSDAG partners + others).

During Q2, from March 14-17, 2018, RCAL conducted a trade mission to Rusizi District in which ten exhibitors were supported to showcase their products (agriculture & agro-processed) at Rusizi Trade Mission. Eight out of ten exhibitors concluded 20 supply contracts with partners from Bukavu and Rusizi (who also sell to buyers in Bukavu town); and sales amounting to RWF

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2.4 million were made by RCAL members to buyers from the Bukavu town (DRC) and Rusizi town.

During Q3, PSDAG engaged a consultant to develop strategy documents (strategic plan and financial sustainability strategy) for RCAL. A participatory approach is being used to support RCAL to develop a new strategic plan, financial sustainability strategy, PPD/Advocacy and M&E plan, which are expected to be completed in September 2018.

NSAR/ACPER/NCCR During Q3, PSDAG signed grant agreements

with NSAR, ACPER and NCCR. The scope of PSDAG partnership with these associations are summarized in the table below:

Table 4: Scope of grant partnerships with private associations

Association Scope of grant agreement partnership Implementation progress

NSAR

• TA to develop strategy documents – financial sustainability, PPD/Advocacy and M&E planning.

• Publicity and promotional activities. • PPD and advocacy. • Capacity building. • Awareness and mobilization to expand

membership.

• Mobilization of seed dealers and multipliers who are currently not NSAR members.

• Website development is underway. • Planning of marketing activities

developing content for radio talk shows and TV spots.

• Development of content for NSAR promotional materials.

ACPER

• TA to develop strategy documents – financial sustainability, PPD/Advocacy and M&E planning.

• PPD and Advocacy. • Market access – quality certification,

market studies, trade fairs. • Capacity building of members on quality

and cooperatives management.

• Advocacy for improved seeds and cassava diseases. ACPER conducted consultation meetings in six districts (Bugesera, Kamonyi, Muhanga, Ruhango, Gisagara and Gatsibo) to understand the extent of the two issues to inform preparation of advocacy paper. Subsequently, they held a PPD meeting in Muhanga District attended by GOR officials and other stakeholders.

• Development of content for communication materials.

NCCR

• Resource mobilization/ financial sustainability (membership and services strategy).

• PPD/Advocacy Strategy. • M&E Planning. • Strategic and annual action planning.

• Identified internship needs for 36 cooperatives.

• PSDAG in collaboration with CDE will help identify and place interns to support the cooperatives improve their operations and management practices.

Representatives of the private sector

associations during the kick-off session at PSDAG offices, Kigali, May 2, 2018 (Photo by

PSDAG staff)

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Association Scope of grant agreement partnership Implementation progress

• Provide capacity building – business group advocacy.

PSDAG STTA started to provide technical assistance and capacity building to private associations to enhance their capacity to engage with government and develop strategic documents (strategic plans, financial sustainability strategies).

The consultant held a kick-off meeting and the first coaching workshop with the private associations on May 2, 2018.

So far, the associations have prepared drafts of the building blocks of their strategy documents, which are under review by the consultant. The consultant is helping (through feedback on drafts and coaching) the associations to improve draft strategy documents.

ACTIVITY 7: PILOT INSTITUTIONAL GOR CAPACITY BUILDING PROGRAMS Sub-Activity 7.1 Pilot Investment Promotion and PPD Capacity Building

In Year 3, PSDAG conducted capacity building assessments of four partner institutions—MINAGRI, RDB, NAEB, and RPPD Secretariat. The assessments found that staff require training in 23 topics within four themes: communications, marketing and promotion, contracting, and PPD. The overall objective of this activity is to develop a set of investment promotion and PPD curricula that can be maintained by GOR into the future to ensure that partner organizations are insulated from institutional capacity and knowledge loss due to staff turnover. Specifically, PSDAG is offering technical support to provide a capacity building plan, to pilot training to GOR staff, and to evaluate results of the pilot program. The capacity building package comprises online and in-person modules delivered via a set of specialized training sessions which are tailored to the needs of each partner institution, along with a set of cross-cutting training sessions to be administered across all four partners.

Grant signing between ACPER and PSDAG, Kigali,

April 23, 2018 (Photo by PSDAG staff)

Grant signing between NSAR and PSDAG, Kigali,

April 23, 2018 (Photo by PSDAG staff)

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During the pilot phase, PSDAG will support the technical assistance to create and test the training and implement the pilot. It is expected that the GOR will submit requests for capacity building to CESB for additional cohorts to attend the training for the 2018/2019 fiscal year and beyond.

During Q3, PSDAG signed an MOU with the Rwanda Management Institute (RMI), a sub-agency to the Capacity Development and Employment Services Board (CESB) to collaborate in the implementation of the pilot GOR Investment Promotion Capacity Building Program. In April 2018, NAEB, MINAGRI, MINALOC, RDB and PSF appointed 27 (11 women) relevant staff to attend the training programs.

Consulting firm (Crown Agents -UK) finalized training materials and on May 7, 2018, the training program was launched at Rwanda RMI training center in Muhanga District. The first set of training sessions were completed on May 18, 2018 and focused on communications, marketing, contracting and PPD. Follow up webinar sessions on these topics were organized on May 31, 2018. The training materials were adapted to include greater use of case studies especially for the contracting course, as well as inviting guest speakers with appropriate expertise from NAEB, RDB and PSF to share success stories. The mid-term training workshops continued on June 18, 2018.

After receiving feedback on the pilot program, PSDAG will integrate tools and methods used by BCG and other consultants (Sub-Activity 2.1). This training approach is different from other training programs in that the methodology and curriculum will be handed over to a permanent entity, the Rwanda Management Institute (RMI), which is responsible for all civil servant capacity building for the country. This will ensure that in the likely event of staff turnover, new staff will be able to continue to access the material and attend the program. At the same time, PSDAG has been coaching the trainees along the way. In Q1 of FY2019, PSDAG will be working with RMI and the Rwanda High Education Council to lay the ground work to certifying the program as continuing vocational education for professionals. This will provide further incentives to both staff and managers to participate in the program, which could be included in their Imihigos. PSDAG will also be evaluating methods for linking RMI to more permanent sources of coaching. It is notable that during Q3, it was announced that CESB would be incorporated into RDB’s structure, further ensuring that RDB will have incentive and clear access to maintaining a robust training program for the investment promotion staff throughout the country.

Sub-Activity 7.2 Pilot NAIPS Monitoring and Evaluation Capacity Building PSDAG plans to provide support to the GOR to develop and provide capacity building for an

M&E framework for investment promotion and PPD activities highlighted in the National

Participants during Communication training at RMI Murambi Training Center, June 18, 2018 (Photo by PSDAG staff)

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Agriculture Investment Promotion Strategy (NAIPS) and included in the PSTA IV.

During Q1, it was decided that this assistance should be part of the broader effort to develop and fine-tune the M&E framework for PSTA IV, which will be supported by multiple donors, namely the UK Department for International Development (DFID), the World Bank, and the European Union Commission. This activity has therefore been put on hold until a clear comprehensive Technical Assistance Plan for implementation of PSTA IV is drawn.

ACTIVITY 8: TECHNICAL ASSISTANCE TO MINAGRI ISU AND RDB Sub-Activity 8.1 MINAGRI Embedded Investment Advisor

The PSDAG EIA continued to provide technical assistance to the Investment Support Unit at MINAGRI as follows:

● Participated in the [REDACTED] Tea Project Oversight Committee Meeting alongside the RDB EIA. More details on the meeting’s resolutions are provided under Sub-Activity 8.2.

● Held a consultative meeting with RDB Aftercare Unit on addressing bottlenecks (land lease fee waived for the last 5 years due to additional investment costs) by [REDACTED] investment. Proposal to address them was submitted to MINAGRI and RDB senior management for review and approval.

● Held a consultative meeting with key stakeholders (MINICOM, MINAGRI and RAB officers, representatives of Federation of Cooperative of Potatoes farmers in Rwanda [FECOPORWA]) and representative of APTC) in potato value chain to review the draft proposed production cost estimation toward a better farm gate price for the potato commodity.

● Assisted MINAGRI in the preparations of the PSTA IV Business Meeting conducted on June 28, 2018 and officiated by the Prime Minister. EIA developed the database of key agribusiness companies invited and prepared agriculture investment opportunity pagers for the meeting.

● Assisted MINAGRI in the development of TECAN Project Action Plan under PSTA IV Result 3 focusing on Cooperative Value Chain Development and Better Access to Finance. TECAN is the EU - Funded Technical Assistance to enhance the ROR’s capacities in the agriculture sector for the sustainable use of land and water resources, value creation and nutrition. TECAN is also assisting MINAGRI with the implementation of EDPRS 2 and supporting the country sustainable agriculture program.

● Supported MINAGRI to respond to data (key statistics on consumption and demand, production data, inputs data, storage, finance and insurance, import and export data, irrigation) request by World Food Bank for their investment plan development.

● Assisted the Rwanda Agriculturist Trading Union on the development of their five-year strategic plan and activities.

● Facilitated the visit of the Minister of State for Agriculture to RAB-Southern Agriculture Zone where he met with researchers and scientists to discuss local seed production.

In addition, the EIA supported private companies with existing/potential investments in

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agriculture sector as presented in Annex I.

Sub-Activity 8.2 RDB Embedded Investment Advisor (EIA) The EIA at RDB continued to provide technical support to investment promotion and facilitation

department as follows:

● Participated in Oversight Committee Meeting on [REDACTED] Tea Factory ([REDACTED]). The meeting provided updates on progress in project implementation including expropriation exercise, availability of [REDACTED] ha of forest, water and electricity connectivity to the factory site, construction of resettlement houses, planting of fodder, purchase and distribution of cows, access road to the factory site, plan for feeder road connection to the factory, tea planting plan, factory construction plan, and the number of jobs created by the project. The oversight committee agreed on the following:

o NAEB to work with [REDACTED] District to ensure that the remaining families in the factory site are relocated and land was handed to [REDACTED].

o NAEB to consult MINAGRI and Rwanda Transport and Development Agency (RTDA) for rehabilitation of the road to the factory site as well as feeder roads.

o Plots have been consolidated while lease agreements will be completed in July 2018.

o Preparation of Cabinet paper and submission. o [REDACTED] to share a detailed plan of their activities for easy of follow-up and

facilitation and a field visit was organized in early May 2018 where stakeholders were able to see the site.

o [REDACTED] to assess the possibility of collecting water from the resettlement area (houses) and use it for factory activities.

o Baseline survey of the area has not been conducted which is a requirement for [REDACTED] financing. It is planned in August 2018.

● Participated in the Gabiro Commercial Farms Project (GCFP) briefing meeting which was chaired by RDB COO and attended by MINAGRI, Netafim, RAB, DFID and consultants among others. Gabiro Commercial farms are the largest irrigation project which covers over 16,000 ha in Rwemiyaga and Karangazi sectors in Nyagatare District. This plan is an integral part of the government’s strategy which aims at attracting more private investments in the agriculture sector where land will be divided into blocks of 300 ha and then leased to private investors. The purpose of the meeting was to update participants on the three studies (Hydrology, Financial Analysis and Environmental, Socio-Economic Impact Assessment and Resettlement Action Plan) relating to the GCFP after the kick-off meeting held at MINAGRI on April 23, 2018, and for the COO to provide some clarifications to the consultants on the project and GOR’s expectations. The study reports are expected to be finalized and validated by stakeholders before the end of July 2018. So far, the first draft reports have been submitted and presented and the final reports are expected by end August 2018.

● EIA continued to represent RDB in the National Task Force for Agriculture and Food Security. The task force was formed by the President and comprises of MINECOFIN, RDB, MINADEF, MINAGRI, MINICOM and PSF. The purpose of the task force is to review causes of delayed implementation of agricultural policies, ensure food security and entice investment in seed production and multiplication in Rwanda. So far visits

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have been conducted in Eastern and Northern Provinces. The taskforce was updated on the effects of rains and floods experienced in April/May as summarized in Table 5.

Table 5: Update by the National Task Force for Agriculture and Food Security Challenges Way forward

o Kigali City and Gasabo District: Agricultural activities in Kigali City and almost all sectors in Gasabo District. Crops grown in the marshland were most affected. Over 105 ha of crops were affected including vegetables, paddy, banana plantation and sugar cane. Land restoration is required and will cost a lot while it will take time to restore the affected land to its normal condition due to soil diseases caused by landslides.

o Nyarugenge District: Crops in an estimated 646 ha of land were destroyed by floods. Affected crops include sugarcane, sweet potatoes, green vegetables, banana, yams and beans.

o Kicukiro District: Over 954 ha of land was destroyed by floods and major crops affected include sugarcane, maize seeds (which was planted on 117 ha), beans, and vegetables.

o Gakenke District: Over 209,085 ha of crops with estimated value of RWF 360 million. Main crops affected were beans, maize, rice, banana and vegetables. About 255 families were affected among which 54 severely and did not have where to live because their houses were demolished. The district is able to raise RWF 85 million to support the affected families while the rest (RWF 174 million) could come from government or other organizations.

o Gicumbi District: Around 85.7 ha of land was destroyed by floods and crops affected include: wheat, Irish potatoes and horticulture with an estimated at RWF 173 million. 230 families were affected directly while 1,060 families could be affected due to poor harvest.

o Burera District: 246,913 ha of land was destroyed by floods and major crops affected include: beans, maize, wheat, and vegetables plus one health center, bridges and feeder roads. Cost of destruction estimated at RWF 606 million. Water from Virunga National park was mentioned as a major challenge and cause of floods.

o Musanze District: 904,452 ha of land was destroyed by floods and crops affected include: Maize, beans and Irish potatoes. 854 families were affected. The total value of loss was RWF 1.4 billion.

o District Mayors were requested to prepare comprehensive reports indicating number of households affected, private sector affected by the floods, estimated value of crops affected, and proposed solutions.

o The districts should indicate the capacities they have (particularly planning for community approach) to support affected communities before soliciting support from the central government.

o Farmers should be advised to grow crops that require short gestation period such as sweet potatoes especially in the lean season as MINAGRI plans for next season.

o Districts should provide the list of farmers who borrowed money from the bank in order to invest in agriculture and are among the affected households to come up with strategies on how to support them.

o RAB was requested to avail seeds on time because provision of seeds was delayed and this affected harvest period and worsened the situation.

o MINICOM will be announcing prices of Irish potatoes every Monday of the week and this will remain until the end of the year.

o The district Mayors were requested to check again their statistics related to land, crops, houses and values and prepare comprehensive in one week.

o RAB was requested to look into the challenges related to shortage of seeds and delayed delivery of seeds which normally affect farming season and harvests. The public institutions were urged to work together to promote, attract and facilitate private investments in local seeds production and distribution.

o The government was asked to look into and put mechanism to control water from Virunga National park which has been causing troubles to the community living in the areas close to the park.

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o Rulindo District: 447,722 ha of land was destroyed by floods and crops affected include: coffee, Maize, beans, and Irish potatoes and 30% of export crops affected. 556 families were affected directly and 17 people lost their lives due to floods and thunderstorms. The total value of impact was estimated at RWF 199 million.

● EIA continued working with the Head of Investment Promotion at RDB and COO’s office to support PSDAG Investment Promotion Specialist to profile potential international companies, develop pitching materials for selected value chains and contact the identified companies and invite them to Rwanda.

● EIA is working with Boston Consulting Group (BCG) in supporting RDB to pitch investors on nutritious foods. Through this support, RDB managed to attract the World Food Bank to visit Rwanda.

In addition, the EIA at RDB also supported prospective and current investors. The assistance provided to the prospective investors focused on product prices, regulatory framework, production and profile of investment opportunities available, and registration and tax information. A summary of support to investors is presented in Annex II.

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2.2 OBJECTIVE 2: FACILITATE INCREASED PRIVATE SECTOR INVESTMENT TO UPGRADE VALUE CHAINS

PSDAG continued with implementation of project activities under its Value Chain Competitiveness Fund (VCCF) and via technical assistance to facilitate increased private sector investment in agriculture. Under the VCCF, PSDAG now supports a portfolio of 55 signed Agri-SME grants under the VCCF (14 signed in Q3). PSDAG also directly supports 47 cooperatives under the CPP to improve their professionalization and use of digital data for decision making. In addition, PSDAG supports a partnership with non-private sector actors: CIP, PSF/RCAL, NSAR, ACPER and NCCR.

Table 6. Summary of FY2018 Q3 results from PSDAG grant activities by value chain Key Indicators Beans Irish Potatoes Maize Horticultur

e Other Value

Chains Dairy Total

Value of gross farm incomes of assisted farmers ($)

219,109 609,313 1,498,578 201,081 9,916 25,592 2,554,589

$ of female farmers 202,318 112,731 421,889 58,389 4,012 3,839 803,177 # of farmers 907 10,835 19,640 1,282 102 2,000 34,766

# of female farmers 837 2,005 5,563 372 41 300 9,118 Value of new private sector investment in the agriculture sector or food chain leveraged by FTF implementation ($)

40,698 121,023 96,130 2,035,051 497,167 4,651 2,794,720

Value of exports of targeted agricultural commodities as a result of USG assistance ($)

1,785 1,908 390,698 84,094 0 0 478,485

Value of domestic sales of value-added agricultural products attributed to program implementation ($)

106,704 565,349 2,084,433 141,875 138,534 253,488 3,290,383

Value of incremental sales (collected at farm-level) attributed to FTF implementation ($)

146,545 0 654,098 196,621 9,570 18,491 1,025,326

Number of farmers and others who have applied improved technologies or management practices as a result of USG assistance

1,602 3,481 4,701 11,696 102 2,052 23,624

Male farmers 581 1,944 2,340 1,331 34 1,705 7,935 Female farmers 1,021 1,537 2,361 10,365 68 347 15,699

Value of Agricultural and Rural Loans and Value Chain Financing ($)

0 0 0 86,744 2,320,724 0 2,407,468

Males ($) 0 0 0 49,070 1,490,888 0 1,539,958 Females ($) 0 0 0 35,814 746,115 0 781,929

Joint ($) 0 0 0 1,860 83,721 0 85,581 Number of jobs created

26 26 1 88 40 4 185

Males 8 15 0 49 24 3 99

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Key Indicators Beans Irish Potatoes Maize Horticulture

Other Value Chains

Dairy Total

Females 18 11 1 39 16 1 86

2.2.1 SELECTION AND APPROVAL OF PRIVATE PARTNERS PSDAG has built strong partnerships with the private sector under the VCCF and as of the end

of Q3, $4.9 million (99 percent) the fund had been obligated with an estimated $69k remaining to be signed from the 2018 BDS RFA (additional funds may be awarded due to any cost savings recorded). The selection and approval process is documented in this section and progress of signed partnerships is documented by activity, with full details on partners’ progress provided in Annex VI.

VCCF PARTNERSHIPS – 2015 RFA All grants anticipated to be awarded under this RFA are now signed and under implementation.

This quarter, PSDAG canceled its partnership with PEBEC Ltd due to lack of financing to complete their outstanding activities. A list of PSDAG’s partnerships under 2015 RFAs is included in Annex III.

● 98 applications received;

● 14 signed grants; 8 completed, 4 in progress and 2 canceled;

● $1.5 million in grant funding; and

● $3.2 million in leverage.

VALUE CHAIN COMPETITIVENESS FUND (VCCF) PARTNERSHIPS – 2016 ANNUAL PROGRAM STATEMENT (APS)

All grants anticipated to be awarded under this RFA are now signed and under implementation. A complete list of grantees is provided under Annex III.

● 171 concept notes received (stage 1); and 63 full applications received (stage 2);

● 27 signed grants;

● $2.5 million in grant funding; and

● $7.5 million in leverage.

VCCF PARTNERSHIPS – 2017 APS In FY2017, PSDAG released four RFAs; a complete list of grantees is provided in Annex III and

progress on implementation includes the following:

Cooperative Professionalization RFA: The goal of this RFA is to improve the overall business performance of cooperatives and their members’ profitability. PSDAG seeks to build the capacity of cooperatives to deliver quality products under formal or informal buying arrangements with identified buyers.

● 47 in-kind grants from the selected 60 cooperatives signed and received ICT equipment and are under implementation. Nine additional cooperatives received ICT equipment (tablet, computer, printer) to enable them fully to digitalize their business processes.

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● 22 cooperatives were selected to receive in-kind Post Harvest Handling (PHH) and aggregation equipment. Eight cooperatives have signed the grant agreements and 10 declined the grant due to lack of leverage financing to cover 50% contribution. PSDAG will procure the PHH and distribute PHH equipment in Q4.

Asset Financing RFA: PSDAG’s objective under this RFA is to facilitate private sector investment by de-risking investment in capital assets (value chain upgrades) financed by banks and other investors. PSDAG awarded [REDACTED] in new grant funding to its first four SMEs under this RFA with [REDACTED] in leverage to:

● Movement Supply Service Ltd will facilitate investments in equipment upgrades that will address issues of quality standards in processed maize by reducing aflatoxin.

● Santé Plus Ltd will invest in the acquisition of small scale equipment used to blend and pasteurize hibiscus and process it into tea bags and juice and in packaging, sewing and labelling machine which will lead the company to get certified products.

● Haraka Holding Ltd will invest in an establishment of adequate irrigation systems and modern post-harvest equipment to increase its profitability and market share.

● Panovita will invest in upgrading and processing corn blends (corn-soy/ sorghum) and mix with milk and amaranth to meet unmet market demand and supply healthier and more nutritious products targeting infants, children and adolescent girls.

Institutional Capacity Strengthening RFA: this RFA seeks to improve the business enabling environment for prospective and current private sector investors in agriculture. During this quarter, PSDAG awarded [REDACTED] in new grant funding to the last three associations (NSAR, ACPER and NCCR) under this RFA with [REDACTED] in leverage.

● NSAR will be receive technical assistance to strengthen its institutional capacity through capacity building of its members. NSAR aims at contributing to increase the farmer’s productivity by sustainably supplying improved seeds, especially new varieties of maize, beans and horticulture seeds.

● ACPER will receive technical assistance aiming at building its institutional capacity to better serve its members and non-members to allow the association achieving its mission and to sustain its interventions for a sustainable growth of its members.

● NCCR will be supported to build its institutional capacity to better serve its members. PSDAG will build NCCR’s technical, human and financial capacity to enable the confederation to achieve its mission and to sustain activities for its members.

Women, Youth and PWD in Entrepreneurship and Leadership Program RFA: The purpose of this RFA to co-invest in projects that: 1) facilitate investment in women, youth and/or PWD-managed SMEs; and (2) increase economic and leadership opportunities for women, youth, and PWD in agribusinesses. During Q3, PSDAG awarded [REDACTED] in new grant funding to the first seven grants under this RFA with [REDACTED] in leverage and is remaining with only one which is at the final stage of internal review and will be submitted to USAID for approval in Q4 Year 4.

● Pasta Rwanda Ltd (Women-owned) will invest in automated tray to speed up the existing operations for faster performance to facilitate them to stop incurred losses.

● KVD Company Ltd (Women-owned) will invest in setting up a small processing fruit juice factory with a capacity of [REDACTED] liters daily and acquiring his own processing equipment that would enable fruits value addition, proper packaging and improved the quality.

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● Koperative Intego Cyuve (Youth-owned, majority women) will invest in the renovation of a seed store and equipping it with proper storage materials, once renovated the seed store will be able to handle [REDACTED] t of potato seeds instead of [REDACTED] t.

● Murama Grain Millers (Women-owned) will invest in upgrading an existing maize processing facility by developing a comprehensive supply chain for corn to strengthening food security, while increasing income and empowering [REDACTED] smallholders.

● Real Green Gold Ltd (Youth-owned) will invest in Banana Post-Harvest Mini-plant focusing on organic farming of banana with high vision to use its innovation technology to reduce the post-harvest losses, increase the fruits shelf life and empowering the farmer to bridge the gap in banana post-harvest handling technics.

● Green Food Ltd (Women-owned) will invest in the upgrade of a milk processing unity by acquiring milk processing machines able to produce more and quality processed milk sub-products.

● Hills of Nature Ltd (Youth-owned) will invest in acquiring packaging equipment that will enable the company to meet the standards needed for honey and improve the market opportunities.

Table 7. PSDAG 2017 Annual Program Statement Progress to Date 2017 APS Coop Professionalization

(RFA-17-01) Asset Finance (RFA-17-02) Women, Youth and PWD (RFA-

17-04 Received 88 • $2.3 million requested

• 1.1 million in proposed leverage

25 • $1.4 million requested • $2.8 million in

proposed leverage

66 • $2.7 million requested • $4.4 million in proposed

leverage Under Negotiation

21 • $16k in grant funding $16k in leverage

0 None 1 • 8k in grant funding • 5k in leverage

Awarded 47 • $28K in in-kind grants (Tablets)

4 • $108k in grant funding • 397k in leverage

7 • 134K in FAA grants • 383k in leverage

Total Anticipated Awarded

82 • $100k grant funding • $100k leverage

4 • $100k grant funding • $400k leverage

8 • $125k grant funding • $200k leverage

Note that leverage includes both capital and noncapital (e.g., working capital and investments in inputs) private sector investments directly relevant to the grant funded; value under negotiation is based on current negotiations, not application amount, and excludes applications that were dropped after due diligence. It is not anticipated that all grants under due diligence and negotiation will be awarded (i.e., the target number of grants awarded will be less than the sum of grants awarded and those under negotiation).

VCCF PARTNERSHIPS – 2018 APS In Q1, PSDAG released the 2018 APS and technical assistance to reach scale and increase

private investment RFA. PSDAG’s objective under this RFA is to facilitate private sector investment that is inclusive of smallholder farmers. Grants awarded will support technical assistance to committed agribusiness partners that will enable them to achieve long-term growth objectives. PSDAG will leverage VCCF funds to increase investment and facilitate value chain actors’ access mainly to finance, either through debt or equity, access to new markets, and upgrade in food safety and quality certifications. PSDAG will work closely with its partners and financial service providers to companies to access finance they need to grow and reach new markets.

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During Q3, PSDAG awarded its first grant under this RFA to Benefactors. Another 7 applications received last quarter were evaluated and 3 of them were selected for further due diligence to receive BDS technical assistance. Negotiations with selected applicants are still ongoing and are expected to be finalized in Q4.

2.2.2 OBJECTIVE 2 ACTIVITIES ACTIVITY 9: SUPPORT PRIVATE SECTOR ACCESS FINANCE FOR AGRICULTURE INVESTMENT Sub-Activity 9.1 Support Agro-SMEs Access to Finance

In Q3, PSDAG continued to support Green Harvest to access an export loan facility worth $[REDACTED]for acquisition of additional equipment to process chili for the export market. Green Harvest dropped its loan request to BRD Export Facility in March 2018 and opted to pursue financing from [REDACTED] bank which offers export facility loans at smaller amounts. As a result of the negotiation process, a loan of RWF [REDACTED]was signed in June 2018. In addition, a loan of RWF [REDACTED]was granted to Movement Supply Services by the same bank to leverage PSDAG’s co-investment grant.

PSDAG also assisted Pasta Rwanda, one of its newest SME partners, to undertake a working capital loan negotiation of RWF [REDACTED]with [REDACTED] bank, which is underway.

Under the BDS program, PSDAG continued to provide technical support to 18 other SMEs in Q3. Through this support, the SMEs developed tools and documentation to present to investors and banks for financing. As a result, FarmFresh is now at final stages of negotiating an investment for a larger facility in Huye District at estimated at $[REDACTED].

Sub-Activity 9.2 Facilitate Access to Finance for Farmers through Cooperatives and MFI Partners

Under an MOU with Kenya Commercial Bank (KCB) Rwanda, PSDAG is supporting 24 rice cooperatives to access finance for inputs and post-harvest handling to meet the supply contracts requirements they have with four main rice processors (Kayonza Rice, Gatsibo Rice Company, Nyagatare Rice Company, and Kirehe Rice Company) in the Eastern Province.

During Q3, RWF 816,500,000 disbursed to 766 SMEs (rice processors, maize and other aggregators, 2 cooperatives and 764 farmers (355 women) as input credit and working capital. In addition, 23,623 farmers (8,268 women) from 200 cooperatives were trained on the cash flow tool as well as follow-up on credit negotiation for their collection of maize in Season A-2019.

Under the PSDAG Cooperative Professionalization Program (CPP), 6 cooperatives were facilitated to access RWF 49 million working capital loans comprising of RWF [REDACTED]from KCB, RWF [REDACTED]from [REDACTED], RWF [REDACTED]from CPF and RWF [REDACTED]from [REDACTED]. Refer to Activity 15 for details.

In addition, PSDAG identified and assessed 13 maize and horticulture cooperatives under CPP from the Eastern Province in need of working capital for Season 2019-A. PSDAG supported the cooperatives to prepare required documentation for loan negotiations. As a result of PSDAG support, seven (see table 3 below) of the 13 cooperatives presented their loan applications to three Financial Service Providers (FSPs) namely; KCB, RIM, Duterimbere and Bank of Kigali

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PSDAG Agri-SME Partners Enabled Women to have working capital by Facilitating Access to the Loans/Credit

During Q3, PSDAG through partners under VCCF continued to promote the access to finance to the smallholder farmers.

• DUTERIMBERE has provided agricultural related credit to 2108 farmers, 1,744 (82%, 7) are women. • RIM has provided agricultural related micro credit to 1,569 farmers, 1,392 (88, 7%) are women. • KCB has provided agricultural related micro credit to 766 farmers, 355 (46%) are women. • KCB has provided agricultural related micro credit to 766 farmers, 355 (46%) are women. • DEYI has provided agricultural related micro credit to 230 farmers, 150 (65%) are women. • UDI has facilitated access to micro credit in agriculture for 30 farmers, 18 (60%) are women. • E&Foods facilitated access to micro credit in agriculture for 22 farmers, 10 (45%) are women.

CASE of SPF: SPF is another PSDAG partner that has facilitated agriculture credit to the smallholder farmers. KORA UBEHO Coop is one of SPF members. This cooperative is made up by 85 members, 54 are women. This cooperative provides different services to its members. Women among other members are receiving quality seeds from their cooperative as credit, they pay back after harvesting their products. KORA UBEHO Coop provides the access to market opportunities for all its members, by buying the entire products for all the members. KORA UBEHO Coop supports its farmers with the micro credits that they need to improve their agribusiness activities. Testimony from MUKAMBONEZA Claudine, cooperative member Mukamboneza Claudine, 35 years old, is married with four children. She is a farmer of Irish potatoes in her village of Rugali village, Kamumba Cell, Nyange Sector in Musanze District. In that village, farmers struggle to find quality seed for the potatoes a crop which is a priority in that area, and when they find it the cost is high which is another challenge to many of the farmers in that area. ‘’I’m very happy to be a member of Kora Ubeho Cooperative. I received 300 kg of the quality seed as credit from our cooperative, and I’m expecting to harvest 4t. Many farmers don’t respect the agriculture seasons due to the lack of seed or simply because they cannot afford to buy it’’, said Claudine. To increase productivity, Claudine and other fellow smallholder farmers involved in Irish potatoes do need other inputs like fertilizers, pesticides. This cooperative provides small loans to the members to overcome challenges that the members are facing when they look for services from the formal FIs. ‘’I took a loan of 200,000 RwF from our cooperative, I used it to buy a cow. I needed this cow so that it can give me the organic manure for my small farm’’, continued Claudine. Claudine plans to keep working with this cooperative in order to grow and expand her business. On her turns she does provide her support in the cooperative, where is serves in the audit committee. In total, PSDAG partners’ facilitated access to finance to 4,789 farmers in total, of which 3,676 are women. The total value of loans and credit disbursed in Q3 is $2,407,468, with women receiving $781,929, men receiving $1,539,958, and men and women jointly receiving $85,581.

(BK) for an amount of approximately RWF 60 million. The outcome of loan applications are expected by late July or early August 2018.

Table 8: List of cooperatives requested loans for the season 2019-A [REDACTED]

Additional support was provided to cooperatives under the CPP program. PSDAG continued supporting cooperatives to be professional. Three cooperatives (COOPCUMA, COPAIGA, and KOIGA) were provided with financial management training and assisted to prepare financial manuals financial statements as required by FSPs during loans application.

PSDAG Agri-SME Partners Enabled Women to have working capital by Facilitating Access to the Loans/Credit

During Q3, PSDAG through partners under VCCF continued to promote the access to finance to the smallholder farmers.

• DUTERIMBERE has provided agricultural related credit to [REDACTED] farmers, [REDACTED] (82%, 7) are women.

• RIM has provided agricultural related micro credit to [REDACTED] farmers, [REDACTED] (88, 7%) are women.

• KCB has provided agricultural related micro credit to [REDACTED] farmers, [REDACTED] (46%) are women.

• KCB has provided agricultural related micro credit to [REDACTED] farmers, [REDACTED] (46%) are women.

• DEYI has provided agricultural related micro credit to [REDACTED] farmers, [REDACTED] (65%) are women.

• UDI has facilitated access to micro credit in agriculture for [REDACTED] farmers, [REDACTED] (60%) are women.

• E&Foods facilitated access to micro credit in agriculture for [REDACTED]farmers, [REDACTED] (45%) are women.

CASE of SPF: SPF is another PSDAG partner that has facilitated agriculture credit to the smallholder farmers. [REDACTED] Coop is one of SPF members. This cooperative is made up by 85 members, 54 are women. This cooperative provides different services to its members. Women among other members are receiving quality seeds from their cooperative as credit, they pay back after harvesting their products. [REDACTED] Coop provides the access to market opportunities for all its members, by buying the entire products for all the members. [REDACTED] Coop supports its farmers with the micro credits that they need to improve their agribusiness activities. Testimony from [REDACTED], cooperative member [REDACTED], 35 years old, is married with four children. She is a farmer of Irish potatoes in her village of [REDACTED] in [REDACTED] District. In that village, farmers struggle to find quality seed for the potatoes a crop which is a priority in that area, and when they find it the cost is high which is another challenge to many of the farmers in that area. ‘’I’m very happy to be a member of [REDACTED]Cooperative. I received 300 kg of the quality seed as credit from our cooperative, and I’m expecting to harvest 4t. Many farmers don’t respect the agriculture seasons due to the lack of seed or simply because they cannot afford to buy it’’, said [REDACTED]. To increase productivity, [REDACTED]and other fellow smallholder farmers involved in Irish potatoes do need other inputs like fertilizers, pesticides. This cooperative provides small loans to the members to overcome challenges that the members are facing when they look for services from the formal FIs. ‘’I took a loan of 200,000 RwF from our cooperative, I used it to buy a cow. I needed this cow so that it can give me the organic manure for my small farm’’, continued [REDACTED].

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[REDACTED]plans to keep working with this cooperative in order to grow and expand her business. On her turns she does provide her support in the cooperative, where is serves in the audit committee. In total, PSDAG partners’ facilitated access to finance to 4,789 farmers in total, of which 3,676 are women. The total value of loans and credit disbursed in Q3 is $2,407,468, with women receiving $781,929, men receiving $1,539,958, and men and women jointly receiving $85,581.

ACTIVITY 10: BUILD THE CAPACITY OF FINANCIAL INSTITUTIONS TO INCREASE AGRICULTURE LENDING

PSDAG offers technical assistance to build internal capacity of financial institutions (training and coaching) to increase agricultural finance capacity including product development, operational systems and risk management systems.

BRD – Increase Lending to Private Sector in Agriculture Under an MOU with BRD, PSDAG supported the BRD to carry out a feasibility study and

business plan to obtain long-term funding from the Land Degradation Neutrality Fund (LDNF). BRD is seeking $[REDACTED]to lend to a cassava project, with two rotational crops, in the Bugesera Region. The loan application is for 1) working and capital investment for Tapioca Starch Company (TASCO) to develop a cassava starch processing facility and for 2) working and capital investment for cassava farmers who would like to invest in irrigation technology to produce fresh cassava on [REDACTED]ha and later sell to TASCO. If successful, the project would support more than [REDACTED]cassava farmers and/or workers will access inputs and loans to supply raw materials to TASCO.

However, the price of raw materials is not yet competitive on international prices of final starch products and the success of the project depends on TASCO selling a large portion domestically, at higher prices. In Q3, PSDAG completed additional research and analysis to look at the investment for potato starch, which fetches a higher price and how to submit the LDN application without the TASCO investment. This work will be finalized in Q4.

Duterimbere MFI – Access to Finance for Smallholder Farmers PSDAG is partnering with Duterimbere MFI to facilitate provision of training on product

development and financial education to increase the value of loans to agriculture sector actors. With PSDAG support, Duterimbere - MFI Ltd is co-investing in its staff capacity to enable them to address the constraints to lending in agriculture and grow its portfolio of agricultural lending. The overall objective of this partnership is to professionalize agriculture loan access to farmers within the Duterimbere financial institution with a focus on women entrepreneurs. Duterimbere plans to scale four agriculture products (refining and scaling two existing products and developing two new ones) within one year, reaching to [REDACTED]clients ([REDACTED] women) and valued at RWF [REDACTED].

Progress of PSDAG’s partnership with Duterimbere MFI during Q3:

● 43 employees (20 women) were trained on agriculture value chain and loan analysis.

● 323 clients (170 women) including members of groups, cooperatives and individuals involved in [REDACTED] Districts were trained on financial education and enterprise development. This activity is ongoing in respective branches.

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● 140 (53 women) smallholder farmers facilitated to access RWF [REDACTED] in agriculture loans.

With the support of PSDAG, Duterimbere continued with activities of supporting farmers to access loans and develop the products that are tailored to their needs. During this quarter, PSDAG supported Duterimbere to revise existing agricultural products and also do a market research and develop new agricultural products. The revised products are [REDACTED]. The market research revealed that the existing products do not respond to the needs of farmers working with Duterimbere. As a result, [REDACTED] new products; [REDACTED]were developed to respond to market needs. In addition, financial education training to famers (new clients for Duterimbere) is still underway in branches of Kayonza, Nyagatare, Musanze and Gatsibo.

Technical Assistance to Banks and MFIs In Q3, PSDAG signed an MOU with Unguka Bank, this is in addition to Umutanguha Financial

Institution (which has products targeting youth and PWD) signed in Q2 and RIM Microfinance signed in Q1. These partnerships will facilitate provision of technical assistance to these financial institutions to enhance skills and knowledge of staff and improve processes with the aim of increasing agriculture loan portfolios.

PSDAG through a local consultant, continued coaching FSPs (KCB, BRD, Goshen Finance, Duterimbere, CLECAM EJOHEZA, Umutanguha Finance and RIM) and cooperatives under PSDAG’s CPP program in Eastern, Northern and Southern Provinces. Coaching support and trainings have been provided to FSPs to enhance their capacities in lending to agricultural cooperatives focusing on marketing, loan appraisal and particularly customer assessment, while cooperatives have been coached on loan applications and processes. This approach will facilitate linkages between cooperatives and FSPs through bridging the gaps identified on both sides. The coaching support is expected to improve relationships between FSPs and their clients and increase the level of lending to the agricultural sector. PSDAG continued with its training program for partner financial institutions, a three-day TOT training was organized for KCB, Goshen Finance, RIM, Umutanguha, CLECAM EJOHEZA and Duterimbere. Thirteen staff from targeted financial institutions were trained as presented in Table 9.

Table 9: List of banks and MFIs trained during Q3 [REDACTED] PSDAG also organized a three-day TOT on cooperative financial management for Professional Field Coordinators (PFCs) to equip them with skills and knowledge in financial management so that they can support cooperatives get sustainable financing from financial services providers. The training was attended by eight staff (two women) including six PFCs. The training covered topics such as financial management in cooperative, financial records in cooperatives, supporting documents used in cooperative financial management, financial reporting and cooperative financial performance analysis. As a follow-up on MOUs signed with different financial institutions, PSDAG met with RIM,

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Duterimbere, Umutanguha and KCB to identify the technical support needed to increase access to finance in agriculture. The identified areas of support per partner are captured in the table below.

Table 10: Required technical assistance by MFIs Institution Identified areas of support

RIM & Duterimbere IMF

● Training on cash flow lending-based tool, lending to agriculture cooperatives, agriculture value chain and agriculture portfolio management to their staff, branch managers and loan officers.

● Support in restructuring and setting the agriculture unit as well as update agriculture policy.

KCB ● Technical support in training rice agro-processor on financial management. ● Continue improving financial management coaching in maize and rice value

chain cooperatives. Umutanguha Finance

● Training on agriculture cooperatives lending to loan officers and branch managers.

PSDAG will continue to provide technical assistance support to FSPs under various partnership mechanisms. Support to Duterimbere and KCB started in May 2018 while technical support to RIM and Umutanguha was postponed until Q4.

As part of the MOU partnership, PSDAG continued to provide technical support to KCB in organizing and conducting training of financial management to two rice processors companies (Kayonza Rice Mill in Kayonza District and Gafunzo Rice Mill in Ruhango District). The training provided an introduction to financial management for SMES, record keeping and financial reporting as well as financial analysis to improve company’s performance. The training was attended by 17 staff (six women) from both companies.

KCB has also partnered with the MasterCard Foundation and the World Food Program (WFP) in increasing financing to farmers. The partnership with KCB and the MasterCard Foundation focuses on providing financial services to farmers, such as the MobiGrow product, and increasing their financial education to enable better financial decision-making. KCB will provide training to [REDACTED]farmers who are members of cooperatives in maize, rice, beans and Irish potatoes value chains. This partnership will also benefit [REDACTED] PSDAG cooperatives working in maize, beans, soya and vegetables value chains who will participate in the pilot MobiGrow product.

PSDAG is supporting KCB in improving their financial education modules so that content respond to the farmers’ needs in terms of financial education and agriculture financing. PSDAG continued providing technical support to KCB in preparation of financial education training manual that will used to train farmers in supported cooperatives for maize, Irish potatoes and

KCB training session on financial management

and MobiGrow to [REDACTED], May 2018 (Photo by PSDAG staff)

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rice value chain under MobiGrow program.

ACTIVITY 11: INCREASED PROVISION OF AGRICULTURE INSURANCE In FY2018, PSDAG planned to collaborate with Access to Finance Rwanda (AFR) on the

piloting of the program through private distribution partners, including insurance companies, financial institutions, agro-input suppliers, and cooperatives. AFR is preparing to begin a livestock insurance program, with national crop insurance products to come afterward. PSDAG will engage with AFR in Q4 on the rollout of these products and how we can support the private sector’s use of them; however, the program is experiencing delays and PSDAG has not been invited to review product designs.

ACTIVITY 12: LEVERAGING CO-INVESTMENT THROUGH THE VALUE CHAIN COMPETITIVENESS FUND (VCCF) Sub-Activity 12.1 Support Agro-SMEs Investing in Capital Assets

PSDAG has assisted Agro-SMEs to make capital investments that are necessary to enable them to grow and reach new markets. The goal has been to strengthen the capacity of agribusinesses to respond to market opportunities by supporting their investment in and adoption of improved technologies and management practices. As a result of capital investments in equipment, technology and related technical assistance, most grantees have been able to expand to new markets, invest in international quality certifications and attract new investors.

To reach further scale, and in turn impact more smallholder farmers, Agro-SMEs will need much larger investments, which beyond the scope of the VCCF.

PSDAG Agro-SME partners have leveraged the VCCF and business development services to raise private financing to invest in capital assets. So far, PSDAG has 55 agro-SME partners, the majority of which are investing in capital assets. Detailed progress on implementation of VCCF grants is summarized below and presented by grantee in detail in Annex IV.

In total, PSDAG’s grantees have invested $ 6.2 million in capital assets through the end of this quarter by leveraging the VCCF, with $2.7 million recorded this quarter (this figure excludes all working capital and operational expenses invested in by the partners).

Under the 2017 Asset-Based Financing RFA, PSDAG is partnering with 5 agro-SMEs to invest $0.6 million in capital assets (refer to Annex IV). In addition, under the RFA-17-04 for Women, Youth and PWD in Entrepreneurship and Leadership, PSDAG finalized grant agreement partnerships of small grants with 7 agro-SMEs to invest $0.5 million in capital assets. (refer to Annex IV).

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Sub-Activity 12.2 Support Investments that Increase Private Supply of and Farmer’s Access to Inputs and Services

PSDAG has made large investments in private sector potato seed supply through five agro-SME suppliers (Agriseeds, SPF, Mudende, INES, Cooperative Abatuburambuto) and International Potato Center (CIP). The details for these partnerships were presented Annex IV. The total estimated investment to be made by PSDAG on potato seeds is $550,000 (10% of the grant fund), leveraging $1 million in private sector investment (both capital and working capital investments). The bulk of the investments are being put toward aeroponic green houses and two laboratories for vitro plants. In addition, the companies will access financing to support the working capital investment requirements.

PSDAG launched its partnership with SPF in Q3 in collaboration with MINAGRI, RAB and the PASP project. The event was attended by the Minister of State for Agriculture, Hon. Fulgence Nsengiyumva, local government officials, and over 300 potato farmers and seed producers who will be working with SPF. The attendees visited six renovated seed storage facilities, supported by funding from PASP, and the aeroponic greenhouse, supported by funding from PSDAG. More information on results of the grant so far can be found in Annex IV.

Results from PSDAG’s partnership with Agro-SMEs and CIP implementing potato seed projects are presented in Annex IV.

In addition to investments in potato seeds, PSDAG has three running partnerships to increase agro-input supply. Progress in Q3 under these partnerships is summarized below and presented by grantee in detail in Annex IV:

● Holland Greentech (HGT) established [REDACTED] out of the total target of [REDACTED] demo plots, which are managed by

Grant agreement signing between Pasta Rwanda and PSDAG, Kigali, April 10,2018

(Photo by PSDAG)

Grant agreement signing between PSDAG and PANOVITA Ltd, Kigali, June 2018 (Photo

by PSDAG staff)

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PSDAG enabled women involved in potatoes, horticulture and maize value chains to have access to improved technologies In Q3, PSDAG’s investment support to private sector partners enabled them to increase the number of hectares under improved technologies and management practices, especially in beans, potato, horticulture and maize value chains. By doing so, the number of women who had access to improved technologies has increased.

• DEYI has provided its services of modern cultural practices of mushroom to 10,000 farmers in horticulture value chain, 9348 (93%) are women.

• Masaka Creamery has provided the capacity building services in livestock management to 2000 farmers, 300 are women.

• AgriLift has provided its services to 2050 farmers, 1066 (52%) are females. • ENAS has served 420 farmers in Post-harvest–handling & storage (beans value chain), 340 (80%) are

women. • FarmFresh has provided its services to 400 farmers, 200 (50%) are females • SHEKINA has provided its services in Post-harvest–handling & storage in horticulture (cassava leaves) to

653 farmers, 598 (92%) are women. • Garden Fresh has served 170 farmers, 56 (32%) are females

In total, PSDAG partners have facilitated 23,634 farmers (15,699 women) to have access to improved technologies in Q3.

[REDACTED]new ([REDACTED]women) agronomists. The company has recruited ten new interns to help with its daily operations. Farmer Field Day activities were conducted in [REDACTED] districts where [REDACTED]people participated.

● Forestry Agricultural Investment Management for Africa (FAIM Africa) Ltd identified all nursery sites in the ten targeted districts and confirmed six of the ten targeted Farmer Field Schools (FFS) demonstration sites. Demo sites in [REDACTED]District have been established. Training of trainers to all targeted lead farmers was conducted and [REDACTED] farmers from [REDACTED] FFS groups located in four districts were trained by the lead farmers. Procurement of laboratory equipment is behind schedule and waiting for approval of cost sharing contribution from shareholders of the company.

● Ingabo Plant Health Ltd completed development its web-based platform that will build capacity of its agrodealers to provide private extension support more cost effectively and manage their transactions. The initial upload was done on Google Play store in June and will be launched in July 2018. The USSD application was also been completed and will be tested in July 2018. The company trained a total of [REDACTED] agrodealers and two cooperative agronomists on seed selection and planting best practices, safety and usage of agricultural inputs, advising farmers on plant health issues, advances sales and customers service skills, empty bottles recycling skills, and taxation.

Further, the company managed to secure an initial convertible loan for a value of $[REDACTED]to purchase new stock and an inventory credit facility limit of up to $[REDACTED]. This has allowed Ingabo to purchase new inventory for season 2019-A for a value of $[REDACTED] and will cover future stock purchases and activated favorable payments terms from suppliers.

PSDAG enabled women involved in potatoes, horticulture and maize value chains to have access to improved technologies In Q3, PSDAG’s investment support to private sector partners enabled them to increase the number of hectares under improved technologies and management practices, especially in beans, potato, horticulture and maize value chains. By doing so, the number of women who had access to improved technologies has increased.

• DEYI has provided its services of modern cultural practices of mushroom to [REDACTED] farmers in horticulture value chain, [REDACTED] (93%) are women.

• Masaka Creamery has provided the capacity building services in livestock management to [REDACTED] farmers, [REDACTED] are women.

• AgriLift has provided its services to [REDACTED] farmers, [REDACTED] (52%) are females. • ENAS has served [REDACTED] farmers in Post-harvest–handling & storage (beans value chain),

[REDACTED] (80%) are women. • FarmFresh has provided its services to [REDACTED] farmers, [REDACTED] (50%) are females • SHEKINA has provided its services in Post-harvest–handling & storage in horticulture (cassava leaves) to

[REDACTED] farmers, [REDACTED] (92%) are women. • Garden Fresh has served [REDACTED] farmers, [REDACTED] (32%) are females

In total, PSDAG partners have facilitated 23,634 farmers (15,699 women) to have access to improved technologies in Q3.

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ACTIVITY 13: TARGETED TECHNICAL ASSISTANCE TO LEVERAGE LARGER PRIVATE INVESTMENTS

PSDAG continues to provide technical assistance to 18 Agro-SMEs on financial management, business planning, investment package and market analysis. The 18 companies are at different stages in receiving BDS support from subcontracted service providers.

Current BDS Activities

Progress and results of PSDAG’s BDS support to private partners during Q3 is presented below.

PSDAG’s implementing partner, Inkomoko, finalized provision of technical assistance to the first cohort of 13 companies. Inkomoko trained 10 companies on the following modules: accounting and financial management, investment preparedness, human centered design, budgeting and sales forecasting. Technical assistance to the 13 companies was completed in July 2018. In addition, in June, Inkomoko signed a new contract with PSDAG to provide BDS to nine additional partners. A boot camp was conducted for these new partners to introduce BDS program orientation, introduction to Unit Economics and working capital, accounting and bookkeeping module, operations capacity and inventory management, financial accounting & reporting module, and sales process & forecasting module.

PSDAG’s implementing partner, Karisimbi Business Partners (KBP), finalized regional market analyses for three3 PSDAG partners. During Q3, PSDAG signed a new subcontract with KBP to build the business capacity for five4 potato seed agribusinesses. Under this BDS support, businesses will be provided with technical assistance on accounting, financial management, and profitability, provided as in-kind services grants, approved by USAID. KBP completed inception reports for supported companies, highlighting initial findings and areas that require support, especially in the areas of accounting and financial management. Training and coaching on accounting and use of quick books software is underway.

PSDAG’s implementing partner, Open Capital Advisors (OCA) is providing technical assistance to five5 companies to raise financing and identify regional market opportunities. Q3 Progress includes:

● As a result of PSDAG support through BDS program, Sarura commodities, secured an investment of over $[REDACTED]from [REDACTED]. In Q3, the company received the first tranche of [REDACTED]% which will be used in construction of warehouse and installation of additional collection centers.

● Farmfresh is at final stages of negotiating an investment for a larger facility in [REDACTED]estimated at $[REDACTED], the company agreed with BRD on a selling price (still confidential) for the [REDACTED]facility.

3 Kumwe Logistics, Masaka Creamery, and Shekina 4 Abatuburambuto cooperative, Mudende Seed Company, INES Ruhengeri, SPF Ikigega, and Agriseeds 5 Sarura, Farmfresh, ENAS, Hollanda FairFoods, and Kigali Farms.

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During Q3, additional needs assessments were completed to ascertain the needs of new grantees before enrolling in the BDS program that aims at ensuring profitability and sustainability beyond PSDAG’s support period. Assessment findings are summarized below:

● UDI is a company involved in production and aggregation of horticulture crops. BDS needs identified include: Support for accounting, financial management and training for staff.

● HRP produces and processes flax seeds for medicinal purposes. HRP indicated that they need support to set up improved financial management, inventory management and record keeping systems. This is a 6-month coaching program where the service provider will get involved in HRP’s business to assess the business, identify weaknesses and support them to address gaps especially in the areas of financial and business management, building staff capacity throughout the program.

● BABC aggregates maize from farmers and mills it to produce different products for both the domestic and export market. BDS needs identified include: set up prudent financial management system, inventory management system and record keeping systems, and staff training on these areas of financial and accounting.

These companies will go through Inkomoko business accelerator program to address the identified needs. The accelerator program is a six months training and coaching program where Inkomoko provides customized support based on the needs of each entrepreneur.

2018 Annual Program Statement – RFA for Technical Assistance

In Q1, PSDAG launched its FY2018 APS along with an RFA for technical assistance, which will contribute to partners’ ability to raise debt and equity for investment. The overall objective of this RFA is to provide technical assistance to committed agribusiness partners that will enable them to achieve long-term growth objectives. Under this RFA, PSDAG will leverage VCCF funds to increase investment by providing technical assistance around:

1. access to finance, either debt or equity;

2. access to new markets; and

3. upgrades in food safety and quality certifications.

Eight applications have been received in response to the RFA for technical assistance. During Q3, PSDAG signed a partnership with Benefactors for technical support on scaling the use of factoring as a short term lending solution, helping the company to raise equity investment and refine its knowledge of laws and regulations around factoring.

Under a grant agreement partnership, PSDAG is providing BDS support to Benefactors through Karisimbi Business Partners and Cedar Ark law firm. Karisimbi will advise on financial and business model which will be used to fundraise among Benefactors partners. Cedar Ark will provide legal advice on rules and regulations governing factoring market.

Seven other applications are at different stages of grantee selection process, with 3 anticipated to be funded in Q4.

In Q2, PSDAG developed a list of preferred BDS vendors in order to be responsive to technical assistance needs of its partners. PSDAG issued an RFP for service providers to provide BDS to

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partners under RFA for technical assistance. Four companies were successful and will be added to the list of preferred vendors in support of the three areas of technical assistance identified in the RFA.

In Q3, a scope of work was developed and shared with the list of preferred vendors. Four service providers were competitively selected and will provide BDS to 12 PSDAG partners who requested for technical assistance support.

ACTIVITY 14: PILOT NETWORKING AND PARTNERSHIP AMONG VALUE CHAIN ACTORS

In Year 4, PSDAG will be bringing together its partners at events to share information and provide networking opportunities that could benefit agribusinesses. Such information may be related to enabling environment, access to finance, ICT solutions, social inclusion, etc. A survey completed in Q1 with 23 private actors identified three priority areas for networking events: how agro-SMEs can engage MINAGRI extension services, private extension models, and access to finance. PSDAG started to engage MINAGRI to plan for a networking event on extension models/services.

During Q3, PSDAG, in collaboration with MINAGRI, RAB, AgriProFocus and USAID Hinga Weze project, PSDAG finalized all the arrangements for an extension workshop to be held on July 20th, 2018. The objective of the workshop is share and disseminate information on available public and private agriculture extension services models and how can they be strengthened further.

ACTIVITY 15: PROFESSIONALIZATION AND QUALITY MANAGEMENT SYSTEMS FOR PRODUCERS AND AGGREGATORS

In September 2017, PSDAG began implementing the CPP with 60 cooperatives (from all four provinces) identified by buyers and other PSDAG partners based on their initial capacity to supply raw materials to meet commercial contracts. The objective of this program is to support cooperatives to upgrade aggregation and marketing practices in their business and become more reliable to different business partners like produce buyers and financial institutions. The goal of the CPP is to build longer term strategies and relationships with buyers and to reduce the transaction costs incurred by exporters or local buyers when working with many small suppliers. Under the CPP, PSDAG is providing capacity building support to cooperatives with a focus on Business Development Services (BDS), Quality Management Systems (QMS), and Data Digitization.

BDS/QMS Support to Cooperatives PSDAG continued to facilitate BDS and QMS coaching through subcontractors. BDS and QMS

coaching was provided to 47 farmer cooperatives. In total, 360 farmers (168 women) attended the BDS coaching sessions while 458 farmers (213 women) were coached on QMS. BDS coaching focused on the business and governance aspects of the cooperatives while QMS focused on post-harvest handling practices for maize, beans, Irish potato and horticulture value chains. The aim of coaching activity is to help targeted cooperatives to apply better aggregation, BDS and QMS skills and marketing practices in their businesses and become more reliable to different business partners (off takers and financial institutions).

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Table 11: Summary of BDS and QMS coaching results in Q3

Technical assistance # of coops Value chains

# of farmers (total)

# of women farmers

BDS coaching 24 Maize &Beas, Irish potato, horticulture.

360 168

QMS coaching 25 Horticulture, Irish potato 458 213

Develop manuals (accounting, finance and human resource, strategic plan, business plan, supply, inventory and operational manuals)

47 N/A N/A N/A

In addition to coaching, farmer cooperatives were supported to develop and update their manuals (strategic plans, business plans, accounting, financial and human resources, supply, inventory and operational manuals).

There was progress by four cooperatives assisted by PSDAG to seek formal registration. KODUKA cooperative in Nygatare District, received a registration certificate from Rwanda Cooperative Agency (RCA). Three other cooperatives, KOTIDI, KOABURUKI and ABIBUMBYE in Ngoma and Kayonza Districts received provisional certificates from their respective districts and submitted them to RCA for registration.

PSDAG facilitated 32 cooperatives to access new markets and enabled farmers sell 2,943 tons of crop produce worth RWF 708 million. Refer to Annex XI for details.

PSDAG continued to facilitate cooperatives to access financing as presented in table 12. Table 12: List of cooperatives facilitated to get loans from financial institutions[REDACTED]

Two horticulture cooperatives from Gatsibo District, JYAMBEREMUHINZI and HIRWAMUHINZI, were also facilitated and linked to USAID Hinga Weze project and BDF for to apply for grants under an RFA on irrigation equipment.

PSDAG attended seven districts Joint Action District Forums (JADF) meetings in Kirehe, Muhanga, Kamonyi, Nyarugenge, Burera, Musanze and Gatsibo Districts to showcase PSDAG project activities. Farmer cooperatives supported by PSDAG under CPP and working in maize and horticulture value chains were facilitated to showcase their products.

PSDAG started coaching farmer cooperatives on financial management tools. The purpose of this coaching is to help cooperatives conduct physical inventory of their assets, review and update their financial books and financial record keeping. During Q3, 49 cooperatives started working on physical inventory as well as assessing their available financial books. In addition, 27 cooperatives were supported to prepare balance sheets, cash flows statements, list of debtors and creditors, stock statement books, and crop collection records. This activity is

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undergoing and will continue to be implemented into Q4.

Two cooperatives (UATA and COFFK Ejoheza) supported by PSDAG under CPP participated in the National Agri-show conducted from June 26, 2018 to July 3, 2018 at Mulindi in Gasabo District. The two cooperatives were facilitated to showcase their products from maize and horticulture value chains.

PHH Equipment Grants for Maize and Horticulture Cooperatives

The Post-Harvest Handling (PHH) Equipment Grant Facility was designed to help farmer cooperatives to improve their post-harvest handling activities and thus will reduce losses that were due to poor post-harvest handling management.

In Q2, PSDAG received and reviewed grant application requests from 29 cooperatives interested in PHH Equipment Grant Facility. As a result, 22 out of 29 cooperatives were recommended by PSDAG technical team as eligible applicants to be facilitated with PHH equipment/materials on cost-share basis.

During Q3, 8 cooperatives signed the grant agreement and PSDAG will procure and distribute PHH equipment in Q4.

Support to Potato Collection Centers During FY2016, PSDAG partnered with 13 cooperatives to upgrade 17 PCCs in Musanze,

Burera, Rubavu and Nyabihu Districts in the Northern Province of Rwanda. The main goal of PSDAG’s support is to strengthen the business skills and consolidation capacity of PCCs to collectively sell to wholesale buyers. PCCs co-invested in post-harvest and handling equipment such as weighing scales, bagging materials, pallets, basins, tables, chairs, and bookkeeping records and piloted the use of Farmbook’s Map and Track module for all PCCs to improve their capacity to collect information on farm suppliers and make informed business decisions.

In Q1, the GOR, through MINALOC, MINICOM, MINAGRI, RCA Northern Province, Districts (Musanze, Nyabihu, Burera and Rubavu), restructured marketing of Irish potato. In Q2, as a result of the restructuring, 11 out of 13 supported Irish potato cooperatives lost their PCCs. All 11 cooperatives were no longer allowed to buy and sell potatoes at PCC level. Individual farmers within these cooperatives are expected to market their produce through the new cooperatives formed at cell level. PSDAG assessed 13 Irish potato cooperatives to establish their operation status and discuss new business opportunities. Seven cooperatives had started exploring new business opportunities (seed multiplication, selling inputs).

During Q3, 3 former Irish potato cooperatives (COAPOM, COAEBU and COIMU) located in Burera and Nyabihu Districts started new business operations. They are operating as wholesale suppliers and buying potatoes from newly established cooperatives. These cooperatives are marketing potatoes to strategic locations that have been identified in Kigali as selling points and to other main buyers (for example Nyabihu Potato Factory). The cooperatives managed to market 73.5 t of potatoes worth RWF 17,385,000.

PSDAG stand at Cyanika cross border market during [REDACTED] District Open Day June 2018,

(Photo by PSDAG staff)

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Increased Investment by Private Sector Agribusiness Sustains and Increases Job Opportunities for Women and Youth

In Q3, PSDAG’s investment support to private sector partners enabled them to create new jobs for women and youth. • DEYI has provided employment opportunities to 45 people, 20 are women (80%). • EXTRACASH has hired new 20 employees, 15 are women (75%). • SPF Ikigega has created 15 new employment opportunities. 6 are women (40%). • TUZAMURANE created 15 new employment opportunities, 10 are women (67%). • HFF has created 11 employment opportunities, 5 are women (45%). • Ingabo Plant Health has hired 7 new employees, 3 are women (43%). In total, 167 new employment opportunities were created by PSDAG partners during Q3, 77 (46%) are women. In order to increase employment opportunities for youth, during Q3 PSDAG has launched the one-year paid internship program in agricultural sector in partnership with MINAGRI and CDE. 210 interns with degrees in relevant areas such as agronomy, finance, food processing, etc. were placed in 15 agro-SMEs and 45 cooperatives supported by USAID/PSDAG. The overall objective of this program is to facilitate the Rwandan youth to acquire skills and knowledge in agro-SMEs and cooperatives with the longer-term objective that they turn these skills into employment and self-employment opportunities in the agriculture sector.

Table 13: Transactions by Irish potato cooperatives [REDACTED]

In addition, four other former cooperatives (COIMU, KAIGA, COAEBU, KOAPTKA) supported by PSDAG started new businesses. As a result of PSDAG support through BDS coaching, they have decided to venture into seed multiplication and input supply. These cooperatives are now engaged in marketing of agricultural inputs as well as seed production.

ACTIVITY 16: SUPPORT FOR DATA DIGITIZATION ACTIVITIES Under the CPP, PSDAG is providing data digitization support to strengthen the business

management of 60 cooperatives and enhance their strategic data-decision making capacities. The expected result is to help cooperatives become more transparent, accountable, and attractive to buyers, financial institutions, and other investors so they can raise capital required to grow. The Data Digitization component of the CPP program comprises (1) basic digitization of farmer registration at cooperatives (all 60 coops); and (2) full digitalization of transactions at cooperatives through provision of ICT equipment (laptop, tablet, and printer) (14 c-ops).

Data digitization is aimed at improving efficiency of transactions, record keeping, data management, reporting, stakeholder engagement, and decision-making processes.

Progress on implementation of this activity during Q3:

Increased Investment by Private Sector Agribusiness Sustains and Increases Job Opportunities for Women and Youth

In Q3, PSDAG’s investment support to private sector partners enabled them to create new jobs for women and youth. • DEYI has provided employment opportunities to [REDACTED] people, [REDACTED] are women (80%). • EXTRACASH has hired new [REDACTED] employees, [REDACTED] are women (75%). • SPF Ikigega has created [REDACTED] new employment opportunities. [REDACTED] are women (40%). • TUZAMURANE created [REDACTED] new employment opportunities, [REDACTED] are women (67%). • HFF has created [REDACTED] employment opportunities, [REDACTED] are women (45%). • Ingabo Plant Health has hired [REDACTED] new employees, [REDACTED] are women (43%). In total, 167 new employment opportunities were created by PSDAG partners during Q3, 77 (46%) are women. In order to increase employment opportunities for youth, during Q3 PSDAG has launched the one-year paid internship program in agricultural sector in partnership with MINAGRI and CDE. 210 interns with degrees in relevant areas such as agronomy, finance, food processing, etc. were placed in 15 agro-SMEs and 45 cooperatives supported by USAID/PSDAG. The overall objective of this program is to facilitate the Rwandan youth to acquire skills and knowledge in agro-SMEs and cooperatives with the longer-term objective that they turn these skills into employment and self-employment opportunities in the agriculture sector.

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● Supported cooperatives continued with mapping and registration of farmers and suppliers; 36 cooperatives registered 3,735 farmers/suppliers (1,779 women) were registered using the data digitization platform.

● Five cooperatives (UATA, CODPCUM, COOPCUMA KOABANAMU and COFFK Ejoheza) that were supported to fully digitize their operations were coached and re-oriented on profitability assessment forms, production estimation forms and purchase and sales forms.

● USAID approved grants for full digitization scale up for seven maize and beans cooperatives and two horticulture cooperatives. The nine cooperatives were selected to replace nine Irish potato cooperatives no longer managing PCCs.

ACTIVITY 17: SEASONAL DEBRIEFS AND STAKEHOLDER ENGAGEMENT

In Year 3, PSDAG demonstrated the importance of using ICT to collect and analyze data to drive decision making, by facilitating four seasonal debrief meetings. In FY2018, PSDAG is planning to scale up seasonal debriefs to other value chains to facilitate data and information sharing between value chain actors in order to improve performance in agricultural value chains.

During Q3, PSDAG conducted a seasonal debriefing readiness assessment of cooperatives supported to digitize their processes. Coopcuma cooperative (produces, aggregates and markets maize and beans) located in Gatsibo District has already used all digitization tools to digitize its processes and is ready to conduct a seasonal debrief with farmers. A seasonal debrief event is scheduled to be conducted in August 2018.

Orientation on use of IT equipment to fully digitize cooperative processes, [REDACTED]

District (Photo by PSDAG staff)

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3. MONITORING & EVALUATION AND CROSS-CUTTING THEMES

3.1 MONITORING AND EVALUATION In Q3, PSDAG continued to implement its FY2018 M&E plan using existing systems and

partnerships, systematic monitoring, documenting, and reporting progress (e.g. accomplishments, lessons learned, and constraints). PSDAG tracked implementation of FY2018 Annual Work Plan activities and progress against set performance indicator targets to measure project outputs, outcomes, and success stories.

Performance Tracking and Reporting PSDAG continued to monitor and report on implementation progress of FY2018 planned

activities. On a monthly basis, PSDAG Technical Focal Persons monitored and reported on implementation of partners’ activities. These grantee updates were used by PSDAG to prepare monthly progress reports for April, May and June.

As per contractual obligation, PSDAG submitted the FY2018 Q2 progress report to USAID through the AIDTracker+ reporting platform. A redacted version of PSDAG FY2018 Q2 progress report was uploaded to the USAID Development Experience Clearinghouse (DEC). As from Q3 onwards, PSDAG will transition reporting on progress towards indicator targets from AIDTracker+ to a new USAID reporting system called Development Information Solution (DIS).

Capacity Building for Private Sector Partners PSDAG M&E team supported four newly signed grantees to establish M&E systems for

monitoring and reporting on grant activities. PSDAG supported prospective private sector partners to set up realistic indicator targets as part of the grant negotiation process. For ongoing partnerships, PSDAG Technical and M&E staff provided continuous backstopping to partners and prospective grantees to ensure proper documentation and reporting in compliance with grant agreement milestones and deliverables.

In addition, technical focal persons conducted monthly visits were to monitor progress with implementation of grant activities and capture success stories.

Mid-Term Performance Evaluation During Q3, USAID commissioned an external performance evaluation of PSDAG to assess the

project’s progress on its two objectives, the effectiveness of its technical approach, and its responsiveness to supporting the GOR’s goal of increasing private investment in agribusiness in Rwanda. The evaluation employed a mixed methodology that consisted of a document review, 66 interviews with key informants, 16 focus group discussions with 104 farmers, and a beneficiary-based survey of 902 farmers to answer seven evaluation questions. A draft performance evaluation report is under review and finalization.

Use of ICT ICT continue to be an important part of PSDAG’s M&E system to facilitate ease in data

collection and reporting results of project activities implemented by various partners. During Q2, PSDAG’s partners continued to use Map and Track (digital data collection system using

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iFormbuilder technology) to register farmers and cooperatives as well as submit quarterly indicator results.

The Map and Track ICT platform has a functionality for use by PSDAG and private sector partners to collect GPS coordinates which were used to generate ArcGis maps6 of project interventions. Live map can be found at: http://arcg.is/2cpeuEx

3.2 SOCIAL INCLUSION 3.2.1 SOCIAL INCLUSION ACTIVITIES

ACTIVITY 19: IMPROVING ACCESS TO BUSINESS OPPORTUNITIES FOR WOMEN, YOUTH, AND PEOPLE WITH DISABILITIES (PWD)

In May 2017, PSDAG published an RFA to support Women, Youth, and PWDs in Entrepreneurship and Leadership Program in Agriculture. The objectives of this RFA are to identify partners to 1) co-invest in projects that facilitate investment in women, youth and/or PWD-managed enterprises; and 2) grow employment opportunities (formal and informal) for these target groups. A total of 57 applications were received in response to this RFA, of which 13 were shortlisted and 8 selected for award of grants.

During Q3, grant agreements were signed with seven agri-businesses owned by women, youth and PWD including Hills of Nature, Pasta Rwanda, Intego Cyuve, Kigali Vision Development Ltd, Green Food Ltd, Real Green Gold Ltd and Murama Grain Millers. Refer to Annex III for information on these grants. The last grant negotiation memo at advanced stage of PSDAG internal review before its submission to USAID for approval. The grant application from KOTWIHEGI Cooperative, a PWDs business group, which is implementing a banana irrigation technology project.

620 For live map, visit http://arcg.is/2cpeuEx

Grant agreement signing ceremony between PSDAG, Hills of Nature and Intego Cyuve,

April 10, 2018 (Photo by PSDAG staff)

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ACTIVITY 20: DEVELOPING AND IMPLEMENTING SOCIAL INCLUSION STRATEGIES PSDAG project emphasizes on promoting gender and social inclusion mainstreaming within

activities implemented by its partners, as per the Gender and Social Inclusion Integration Plan developed in FY2016. The main objective of embedding gender and social inclusion in PSDAG activities is to sensitize SMEs and cooperatives on the benefit of making their business models more inclusive for excluded groups particularly women, youth and PWDs.

In FY2017, PSDAG developed a Gender and Social Inclusion (GSI) curriculum and piloted with eleven private partners. PSDAG used two local service providers to the implement the GSI to build the capacity of companies to develop social inclusion strategies, embed them in their business models and value chain activities, and understand both the business and social impact of businesses on women, youth, and PWDs.

Building off on the experiences and lessons of implementation of the pilot GESI with 11 SME partners, during Q3, a new cohort of 36 SMEs under VCCF program (27 new ones and 9 from 2017 intake) was launched. Implementation of GSI curriculum is being delivered through one-on-one coaching model, instead of two-day training as per the previous intake, to ensure better participation and a more tailored approach to the partners’ needs. PSDAG partners are being supported to adapt their business models to be more gender and socially inclusive. The focus of the GESI coaching is to review existing policies, guidelines and strategies to make them gender and socially inclusive. This will entail, use of local service providers to provide 1-1 technical assistance on developing gender and socially business models, strategies and policies as well as work plans. Examples of documents to be reviewed by LSPs to incorporate gender and social inclusion: company statutes, company/cooperative rules and regulations, company procedural manuals, human resource manual and business plans. Technical assistance to 36 SMEs will be provided for 8 to 10 weeks between July and September 2018.

ACTIVITY 21: INTERNSHIP PROGRAM FOR YOUTH, WOMEN, AND PWD IN AGRIBUSINESS On June 6, 2018, USAID/PSDAG and in

collaboration with MINAGRI, the Rwanda Youth in Agribusiness Forum (RYAF) and the Capacity Development and Employment (CDE), officially launched a one-year paid internship program for youth in the agriculture sector. The overall objective of this program is to facilitate the Rwandan youth to acquire skills and knowledge in agro-SMEs and cooperatives with the longer-term objective that they turn these skills into employment and self-employment opportunities in the agriculture sector. The internship program will benefit 328 young university graduates with degrees in various fields such as agronomy, finance, food processing among others. The interns have been selected and placed in 15 agro-SMEs and 45 cooperatives supported by USAID/PSDAG for a period of one year. CDE, SMEs, cooperatives and PSDAG will facilitate the interns a stipend during their 12 months internship period.

3.3 COMMUNICATION Marking and Branding

PSDAG continued to implement USAID marking and branding guidelines for ongoing as well as new project activities under different partnership mechanisms (grant agreements and MOUs).

A section of interns during the launch of the internship program, June 6, 2018 (Photo by

PSDAG staff)

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PSDAG produced and used USAID-branded materials (signage and stickers) to brand 29 new sites under the project activities implemented by private-sector partners (CIP, Holland Green Tech, Agriseed company, Mudende Seed Company, Ingabo and HRP). PSDAG procured new promotional and branding materials for the use of PSDAG events, enabling the project to increase visibility and comply with the USAID’s branding and marking requirements.

Media Coverage During Q3, PSDAG continued to engage various media houses to ensure coverage of PSDAG

activities including project launch events and partnership signing ceremonies. PSDAG issued press releases and shared them with media outlets as well as social media

platforms to ensure proper visibility and communication of PSDAG activities in newspapers, local radio stations, magazines, and social media:

● Circulated a press release for the official launch of the partnership with Masaka creamery at Kigali on June 18, 2018 (see Annex V). The event was attended by The US Ambassador to Rwanda, representatives from MINAGRI and MINICOM, farmers and other private sector partners.

● Circulated a press release for the official launch of a one-year paid internship program for 328 youth in the agriculture sector supported by PSDAG in collaboration with MINAGRI, RYAF and CDE. The internship program was launched on June 6, 20178 by the State Minister of Agriculture and attended by officials from USAID, CDE and other partners.

● Media coverage on the official launch of the partnership with SPF Ltd in collaboration with MINAGRI/PASP on June 13, 2018 in Musanze District. The event was attended by the Minister of State/MINAGRI and USAID Deputy Director of Economic Growth, farmers, cooperative officials, and other development partners.

● Preparations for the official launch of partnerships with Holland Green Tech, CIP and INES Ruhengeri are at advanced stages and expectedly be held in July and August 2018.

PSDAG monitored coverage of PSDAG activities in the media as presented in Annex VI. In addition, PSDAG continued to publicize project activities, partnership signing ceremonies, and project launch events, in social media through the official Twitter account7 which currently has over 426 Twitter followers including MINAGRI, USAID Rwanda, MINECOFIN, NAEB, IFAD, FAO, Drones for Agriculture, and other notable key sector players.

722 See https://twitter.com/psdag_rwanda

Samples of PSDAG tweets

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Success Stories During Q3, PSDAG continued to track implementation of grantee activities with the aim of showcasing the effect, outcome, and impact of project investments on firms, cooperatives, and smallholder farmers. There were two success stories drawn from implementation of PSDAG-supported activities during this reporting period. These success stories showcase how PSDAG’s support to business models of private-sector partners have impacted value chain actors including smallholder farmers. The first success story is about how PSDAG’s co-investment with SPF-Ikigega has increased production and supply of high quality Irish potato seeds to smallholder farmers. Secondly, with PSDAG’s co-investment, DEYI Ltd has professionalized mushroom production by facilitating access to high quality raw materials and building the capacity of mushroom growers. These success stories are featured under Annex VII.

3.4 CAPACITY BUILDING AND KNOWLEDGE MANAGEMENT PSDAG assists and monitors partners to implement capacity building activities under grant

agreement partnerships. PSDAG’S support included preparation of training materials and or monitoring delivery of training to ensure adherence of quality standards such as use of participatory methods. PSDAG’s approach is to deliver capacity building through private sector partners, agro-SMEs and cooperatives, and fund these activities at a level that improves the sustainability of the programs. Capacity building is demand-driven and kept to a low cost, with trainings conducted as close to the participants as possible given the training requirements.

In Q3, PSDAG monitored the training of private partners listed in Table 14. In addition, PSDAG facilitates provision of capacity building under the BDS support to private partners (see Activity 13) and CPP (see Activity 15).

Table 14. Capacity building activities supported by PSDAG through its private partners

[REDACTED]

3.5 ENVIRONMENTAL COMPLIANCE PSDAG continued to monitor environmental compliance in implementation of continuing and

new project activities implemented by private partners. Annex IX includes a summary of environmental monitoring requirement and results of partnership activities.

Safe Pesticide Use (SPU) poster were finalized and Kinyarwanda version produced and distribution is underway to 60 PSDAG supported farmers’ cooperatives under CPP and GOR partners (MINAGRI, RALIS, NAEB and RAB). Soft copies of the SPU poster will be shared with SMEs to enable them to produce their hard copies for use to train their respective staff and business partners/ out-growers.

PSDAG conducted initial environmental examination for all the five shortlisted applicants under Asset Financing RFA, to ensure proposed grant activities comply with GOR and USAID environmental requirements.

Nine Environmental Review Reports (ERRs) were prepared for newly signed grant agreement

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partnerships in compliance with PSDAG’s Environmental Mitigation Monitoring Plan (EMMP). In addition, environmental compliance monitoring field visits were undertaken to 16 activity sites for CIP, Ingabo Plant Health, SPF-IKIGEGA, Agriseeds Africa, Mudende Seed Production, INES, and Cyohoha Modern Farming.

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4. PARTNERSHIPS AND LINKAGES 4.1 DEVELOPMENT BANK OF RWANDA (BRD) Under an MOU partnership framework, PSDAG continue to collaborate with BRD to increase

private sector investment in agriculture, increase lending and access to other financial services (e.g., credit, insurance, leasing) for agriculture value chain actors, strengthen the capacity of the BRD agricultural lending department to build partnerships with financial services provider (FSPs), and improve monitoring of agriculture lending by BRD and its partners. Progress on the partnership with BRD is discussed under Activity 10.

4.2 KENYA COMMERCIAL BANK (KCB) RWANDA PSDAG is collaborating with KCB Rwanda to increase private sector investment in agriculture,

strengthen the capacity of the KCB agricultural lending unit, and improve monitoring of agriculture lending by KCB and its partners. Progress on the partnership with KCB is discussed under Sub-Activity 9.2.

4.3 MINAGRI-IFAD POST-HARVEST AND AGRIBUSINESS SUPPORT PROJECT (PASP)

PASP (a partnership between GOR and the International Fund for Agriculture Development [IFAD]) is an $[REDACTED]project supporting agriculture production and processing operations to help develop an efficient post-harvest system driven by the private sector to reduce post-harvest losses and ensure food security of staple crops in Rwanda.

PSDAG and PASP are supporting SPF to invest in quality Irish potato seed production and commercialization. Progress on the partnership with SPF in collaboration with PASP is discussed under Annex IV.

4.4 ACCESS TO FINANCE RWANDA (AFR) No activity to report in Q3.

4.5 MINAGRI/CESB/RYAF PSDAG is working with MINAGRI in collaboration with CESB and RYAF to facilitate 328

internship opportunities for youth in 12 PSDAG SMEs and 48 cooperatives. PSDAG is leveraging the existing partnership between CESB and MINAGRI to place graduate interns at PSDAG partners (private firms and cooperatives). The internship program was launched by the State Minister for Agriculture on June 6, 2018 as discussed under Activity 21.

4.6 USAID RWAND HINGA WEZE The Feed the Future Rwanda Hinga Weze project seeks to sustainably increase smallholder

farmers’ income, improve nutritional status of Rwandan women and children, and increase the resilience of the agriculture and food systems to the changing climate.

Progress was made on collaboration with Hinga Weze to implement FY 2018 Annual Work Plan activities. As discussed under Activity 14, PSDAG in collaboration with MINAGRI, RAB, AgriProFocus and USAID Hinga Weze project finalzed preparations for an extension workshop to be held on July 20th, 2018 and a roundtable on irrigation finance to be held with BRD and

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RAB in Q4. In addition, as discussed under Activity 15, two horticulture cooperatives linked to USAID Hinga Weze project and BDF for to apply for grants under an RFA on irrigation equipment.

4.7 EAST AFRICA TRADE AND INVESTMENT HUB (EATIH) EATIH works to boost trade and investment with and within East Africa. The goal of the EATIH

is to deepen regional integration, increase the competitiveness of select regional agriculture value chains, promote two-way trade with the US under the African Growth and Opportunity Act (AGOA), and facilitate investment and technology that drives trade growth intra-regionally and to global markets.

The country representative in Rwanda from EATIH works out of the PSDAG office and collaborates closely with both C1 and C2. During Q3, EATIH identified two PSDAG private partners (KUMWE and Garden Fresh) to be supported to attend the Cold Chain Expo from October 1-3, 2018 in Las Vegas, USA.

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ANNEXES ANNEX I: SUPPORT PROVIDED TO PRIVATE SECTOR BY PSDAG EIA AT MINAGRI [REDACTED]

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ANNEX II: TYPE OF TECHNICAL ASSISTANCE INVESTORS BY EIA AT RDB [REDACTED]

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ANNEX III: PRIVATE PARTNERSHIPS IDENTIFIED UNDER VCCF 2015 REQUEST FOR APPLICATIONS (RFA) [REDACTED]

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2016 ANNUAL PROGRAM STATEMENT [REDACTED]

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RFA-17-02 ASSET FINANCING GRANT [REDACTED]

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RFA-17-03 INSTITUTIONAL CAPACITY STRENGTHENING [REDACTED]

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RFA-17-04 WOMEN, YOUTH AND PWD IN ENTREPRENEURSHIP AND LEADERSHIP PROGRAM IN AGRICULTURE [REDACTED]

RFA-2018-01 TECHNICAL ASSISTANCE [REDACTED]

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ANNEX IV DETAILED PROGRESS BY COMPONENT 2 PARTNER [REDACTED]

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ANNEX V: PRESS RELEASES

CONTACT Wilson Kaikai USAID-PSDAG Project M&E Specialist Tel: 0781 600 510 Email: wilson.kaikai@psdag.org

FOR IMMEDIATE RELEASE

New Agricultural Internship Program Launched With Support of USAID

KIGALI - On June 6, 2018, the United States Agency for International Development (USAID), through its Private Sector Driven Agricultural Growth Project (PSDAG) and in collaboration with the Ministry of Agriculture and Animal Resources (MINAGRI), the Rwanda Youth in Agribusiness Forum (RYAF) and the Capacity Development and Employment (CDE), officially launched a one-year paid internship program for youth in the agriculture sector.

The overall objective of this program is to facilitate the Rwandan youth to acquire skills and knowledge in agro-businesses with the longer-term objective that they turn these skills into employment and self-employment opportunities. The program will target up to 328 young graduates with degrees and diplomas in relevant areas such as agronomy, finance, food processing etc. The youth will be placed with 12 agro-SMEs and 48 cooperatives for a period of one year. Placement of interns is expected to start in June 2018.

USAID supported MINAGRI and RYAF in identifying the number and required qualifications of the interns based on data shared by current partner agri-businesses and cooperatives. The agri-businesses and cooperatives that have opened their doors to the 328 interns have all been supported with technical assistance and co-investment in their businesses by USAID, under its PSDAG project.

Under this partnership with MINAGRI, RYAF will coordinate the successful implementation of the internship program and CDE will pay a monthly for up to 12 months for each intern. In addition, USAID, private partners and cooperatives will contribute to ‘top up’ of the monthly stipend.

USAID/Rwanda’s Economic Growth Deputy Office Director Sabinus Anaele said, “we at the United States Agency for International Development (USAID) are extraordinarily proud to contribute to this important opportunity for youth in Rwanda. Engaging youth in agriculture is investing in the future, because youth are the future farmers and agribusiness leaders of tomorrow.”

“I expect to use my theoretical knowledge on agricultural production to contribute to sustainable agriculture in Rwanda. This internship placement provides me an opportunity to acquire skills and experience required in the job market”, said Kansiime Anitah who is one of the selected interns.

*End*

The Private Sector Driven Agricultural Growth (PSDAG) program is a five-year (2014-2019) project funded by the United States Agency for International Development (USAID). The goal of PSDAG is to increase smallholder farmers’ incomes by promoting private sector investment and to facilitate the transformation of agriculture into a market-oriented, competitive, and high-value sector. For more

information please visit. www.usaid.gov.

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CONTACT Aime Ndayisenga USAID PSDAG project Communications Specialist Tel: +250788342132/788500086 E-mail: andayisenga@rti.org FOR IMMEDIATE RELEASE

USAID Launches Support of Masaka Creamery Dairy Processing Facility

KIGALI - On June 18, 2018, the United States Agency for International Development (USAID), through its Private Sector Driven Agricultural Growth Project (PSDAG), officially launched its partnership with Masaka Creamery, an American-owned company based in Rwanda that produces cultured dairy products (yogurt, cheese and butter.) Masaka Creamery used a 234 Million RWF grant from USAID to acquire new dairy processing equipment, cold storage equipment, and milk quality laboratory equipment. These investments will also increase the incomes of farmers who supply Masaka Creamery with milk and will help to meet market demand and quality requirements. The event took place at the new Masaka Creamery’s factory in the Special Economic Zone (SEZ), Gasabo District.

USAID support to Masaka Creamery has helped the company build and equip a new processing facility in Kigali SEZ, where the firm successfully transitioned equipment and operations from a previous factory in Masaka District. The new factory has an additional processing line, new packaging equipment, a laboratory to monitor and improve product quality and food hygiene, as well as ample room to grow with the company. The investments made by Masaka Creamery with USAID support have boosted the company’s annual domestic sales by 200 percent, supported the development of eight new products (fresh cream, sour cream, butter, ghee, mascarpone, fruit yogurt, thick yogurt, ikivuguto), and contributed to local economic development by enabling an increase of income by 20 percent for 2,000 milk farmers in the Eastern and Northern Provinces. The new products have received the Rwanda Standards Board quality standard certification and are currently being sold to high-end hotels, restaurants and retail markets. In addition, expansion of Masaka Creamery’s operations has helped create 11 new jobs for which nine of the new hires are persons with disabilities. ‘‘We are grateful to Masaka Creamery for having particularly employed the youth regardless of their disability (hearing) status. This is a perfect example of social inclusion and we hope that other businesses will draw into your footprints”. Says Jean Damascene, a representative of disabled workers at Masaka Creamery.

Masaka Creamery, which sources milk directly from small family-owned dairy farms, cooperatives, and milk collection centers also provides extension services and training to farmers. The company has established a new partnership with KOZAMGI milk cooperative located in Gicumbi District, which provides raw milk from 2,000 farmers, supplying between 6,000 - 7,000 liters per week to Masaka Creamery. Masaka Creamery also has in place higher quality standards for the milk it uses, and as a result, pays a higher purchase price to the farmers for raw milk (currently RWF 250/L as opposed to the average price of RWF 200/L), which is also contributing to USAID’s goal to increase incomes of small-scale farmers.

‘‘Working with Masaka Creamery is a relief to our cooperative. We can now invest in new projects, because we have a regular client who consistently pays us on a weekly basis”. Says Ntabanganyimana Rachid, the president of KOZAMGI milk cooperative.

*End*

The Private Sector Driven Agricultural Growth (PSDAG) program is a five-year (2014-2019) project funded by the United States Agency for International Development (USAID). The goal of PSDAG is to increase smallholder farmers’ incomes by

promoting private sector investment and to facilitate the transformation of agriculture into a market-oriented, competitive, and high-value sector. For more information please visit. www.usaid.gov.

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ANNEX VI: MEDIA COVERAGE TRACKER

Project activity Date Where Title of Press Release Media Link to press coverage

Promoting the dairy sector by facilitating the

firm to increase purchases of milk from farmer cooperatives to

produce cultured products such as fruit yogurt and cheese for both the domestic and

export markets.

June 18, 2018

KSE, Ndera, Gasabo district

USAID Launches Support of

Masaka Creamery

Dairy Processing

Facility

New Times http://www.newtimes.co.rw/news/

dairy-factory-employs-deaf

Top Africa News

http://www.topafricanews.com/2018/06/18/disability-is-not-inability-17-out-of-29-employees-at-masaka-creamery-factory-are-deaf/

Kigali Today

http://www.kigalitoday.com/ubukungu/ubucuruzi/article/80-by-amata-mu-rwanda-apfushwa-ubusa

The source post

http://thesourcepost.com/index.php/2018/06/19/ambasaderi-wa-amerika-yaryohewe-nikivuguto-cyu-rwanda/

Imvaho nshya

http://imvahonshya.co.rw/minagri-irashishikariza-abikorera-kubaka-inganda-zongerera-agaciro-amata/

Igihe.com

Kiny:http://www.igihe.com/amakuru/u-rwanda/article/usaid-yinjiye-mu-bufatanye-n-uruganda-rw-ibikomoko-ku-mata-rwihariye-mu Eng:http://en.igihe.com/news/usaid-supports-dairy-processing-facility-with.html

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ANNEX VII: SUCCESS STORIES

79

ANNEX VII: GOR Pilot Investment Promotion Capacity Building List of Attendees [REDACTED]

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ANNEX VIII: FY2018 STTA – Q3 (APRIL 2018 - JUNE 2018) Name Organization Project (Y/N) Title Purpose Travel Dates From/To SOW

[REDACTED] RTI Y Investment Promotion Expert

Prioritize sectors for agriculture investment, develop marketing materials, profile investors, develop a joint action plan for investment attraction and after care and Capacity Building of GOR staff involved in investment attraction and after care.

April-May 2018 Georgia/Rwanda On-going

[REDACTED] RTI Y

Private Sector Development, Public Management and Trade Investment Expert

Provide technical assistance and capacity building to private associations to enhance their capacity to engage with government and develop strategic documents (strategic plans, financial sustainability strategies).

June 19 – July 6, 2018 US/Rwanda ongoing

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82

ANNEX IX: ENVIRONMENTAL COMPLIANCE MONITORING REPORT [REDACTED]

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ANNEX X: MAP OF PSDAG PROJECT INTERVENTIONS [REDACTED]

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ANNEX XI: LIST OF COOPERATIVES FACILITATED ACCESS TO NEW MARKETS [REDACTED]

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ANNEX XII: FY2018 PSDAG INDICATOR RESULTS METRICS – Q3 Code Indicator Description Data Collection FY18 Q3

Targets FY18 Q3 Results Notes

4.5-Z07 1-Value of gross farm incomes of assisted farmers (US$) Source: USAID/Rwanda Custom

Indicator Type: Outcome Method and Source: Records and reports from grantees Frequency: Annual Disaggregated by: Value chain, Season, Sex

2,554,589

Value of agricultural crop produce purchased by 39 SMEs as part of the VCCF program and 60 cooperatives as part of the CPP program.

Value by crop (US$) 2,554,589

Beans

219,109

Potatoes 609,313

Maize 1,489,578

Horticulture 201,081

Other crops 9,916

Dairy 25,592

Value by season (US$) 2,554,589

Season A 966,775

Season B 1,587,815

Season C -

Value by sex of farmers (US$) 2,554,589

Male 1,447,260

Female 1,106,790

EG.3.2-22*

2-Value of new private sector capital investment in the agriculture sector or food chain leveraged by FTF implementation (US$) Source: FTF

Indicator Type: Outcome Method and Source: PSDAG records, grantee progress reports Frequency: Quarterly

330,014 2,794,720

Value of capital investments made by 39 SMEs as part of the VCCF program and 8 cooperatives as part of the CPP program.

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Disaggregated by: None

Value 330,014 2,794,720

Beans 38,719 40,698

Potatoes 56,510 121,023

Maize 78,959 96,130

Horticulture 59,069 2,035,051

Cross cutting 75,582 -

Other crops 21,175 497,167

Dairy - 4,651

Type of beneficiary 298,958 -

Agro dealer / supplier investment in input stock - -

Agri business investment in capital equipment 298,958 -

EG.3.1-12*

3-Number of agricultural and nutritional enabling environment policies analyzed, consulted on, drafted or revised, approved, and implemented with USG assistanceSource: FTF

Indicator Type: OutcomeMethod and Source: Embedded Investment Advisors records, PSDAG records, STTA reportsFrequency: AnnualDisaggregated By: Process/step, Policy area, Total policies

8

Eight agricultural business-enabling environment policies, strategies, frameworks, and/or guidelines, which are at various stages of completion.

Policy area 8

Institutional architecture for improved policy formulation -

Enabling environment for private sector investment 8

Agricultural trade policy -

Agricultural input policy (e.g. seed, fertilizer) -

Land and natural resources tenure, rights, and policy -

87

Resilience and Agricultural risk management policy -

Nutrition (e.g., fortification, food safety) -

Other -

Total policies passing through the following Processes/Steps:

8

Analysis -

Stakeholder consultation/public debate 3

Land Use Management Guidelines, Farmer Registration/Land Profiling System, Investment strategies for the 7 prioritizes sectors

Drafting or revision 5

Agricultural Land Information System (ALIS), Land Use Management Guidelines, Farmer Registration/Land Profiling System, Gako Beef Project – Feasibility Study and Business Plan, Investment Promotion Strategy Framework

Approval (legislative or regulatory) 1

Export Commodity Aggregation Services Model

Full and effective implementation 3

Agricultural Land Information System (ALIS), Investment Promotion Strategy Framework, Pilot National Agricultural Public-Private Dialogue (Agri-PPD) Framework

4.5.1-Z03

4-Number of public entities assessed for capacity in executing their roles and responsibilities Source: USAID/Rwanda Custom

Indicator Type: Output Method and Source: Embedded Investment Advisors records, STTA reports Frequency: Quarterly Disaggregated by: Government level (national, province, district), Type of entity, New/Continuing

- - No public institution was assessed by PSDAG project during this reporting period.

Type of public entity: - -

National level - -

Provincial level - -

District level - -

Parastatal - -

Ministry - -

Decentralized agencies - -

New/Continuing: - -

New - -

88

Continuing - -

PSDAG internal indicator

5-Number of private and civil-sector stakeholders (organizations and individuals) responding to calls for input on relevant reformsSource: PSDAG Internal indicator

Indicator Type: OutputMethod and Source: PSDAG records, STTA reportsFrequency: QuarterlyDisaggregated by: Type of stakeholder (civil or private-sector), industry level, sex of respondents

69 30

Stakeholders who participated in reform process facilitated by PSDAG including District Agricultural Public Private Dialogues (Agri-PPDs). Target underachieved because some District Agri-PPDs were delayed.

Type of stakeholder: 69 30

Private sector 38 3

Civil society 31 -

Individuals - -

Organizations - 27

Sex 69 30

Males 48 20

Females 21 10

2.4.1-Z09

6-Percentage of stakeholders agreeing that consultative process was effective in soliciting their input (%) Source: USAID/Rwanda Custom

Indicator Type: Outcome Method and Source: PSDAG records Frequency: Quarterly Disaggregated by: Type of stakeholder, individual/organization, and sex of respondents.

100% 100% Survey conducted to get feedback from stakeholders who participated in the District Agri-PPD meetings.

Type of stakeholder: 100% 100%

Private sector 70% 100%

Civil society 0% 0%

Individual 0% 0%

Farmers organization 30% 100%

Sex 100% 100%

Males 70% 100%

89

Females 30% 100%

EG.3.2-23*

7-Value of targeted agricultural commodities exported with USG assistance (US$)Source: FTF

Indicator Type: OutcomeMethod and Source: Progress reports from granteesFrequency: AnnualDisaggregated by: Value chain, destination

478,485

Value of exports made by PSDAG private partners. Destination of exports is within the Eastern Africa Region and beyond.

Value of regional exports EA region, Including South Sudan + Congo DRC + Congo Brazzaville (US$)

405,778

Beans 1,744

Potatoes 1,908

Maize 390,698

Horticulture 11,428

Other crops -

Dairy -

Value of regional exports going outside EA region(US$) 72,707

Beans 41

Potatoes -

Maize -

Horticulture 72,666

Other crops -

Dairy -

4.5-Z06 8-Value of domestic sales of value-added agricultural products attributed to program implementation (US$) Source: USAID/Rwanda Custom

Indicator Type: Outcome Method and Source: Progress reports of grantees Frequency: Semi-annual Disaggregated by: Value chain

3,290,383

Value of domestic sales (US$) 3,290,383

90

Beans 106,704

Potatoes 565,349

Maize grain 685,046

Maize products (flour, grits) 1,399,388

Horticulture 141,875

Other crops 138,534

Dairy 253,488

EG.3.2-19*

9-Value of small-holder incremental sales generated with USG assistance (US$) Source: FTF

Indicator Type: Outcome Method and Source: Grantee progress reports Frequency: Quarterly Disaggregated by: Value chain, number of beneficiaries

932,593 1,025,326

Value of incremental sales made by 33,051 smallholder farmers to 39 SMEs under VCCG program and 60 cooperatives under CPP program.

Value of sales by farmers (US$) 932,593 1,025,326

Beans 230,611 146,545

Potatoes 94,053 -

Maize 188,029 654,098

Horticulture 412,028 196,621

Other crops - 9,570

Dairy 7,872 18,491

4.4-Z01 10-Number of beneficiaries with new market linkages as a result of USG assistance Source: USAID/Rwanda Custom

Indicator Type: Outcome Method and Source: Grantee progress reports Frequency: Semi-annual Disaggregated By: Value chain, type of beneficiary (farmer,

11,658

New markets accessed by farmers who sold crop produce to 39 SMEs under VCCF program and 56 cooperatives under CPP program.

91

cooperatives, agribusinesses)

Commodity 11,658

Beans 206

Potatoes 466

Maize grain 559

Horticulture 10,325

Other crops 102

Dairy -

Type of beneficiary 11,658

Farmers 11,658

Producers (cooperatives) -

Firms -

EG.3.2-20*

11-Number of for-profit private enterprises, producers organizations, water users associations, women’s groups, trade and business associations and community-based organizations (CBOs) that applied improved organization-level technologies or management practices with USG assistance Source: FTF

Type: Outcome Method and Source: Progress reports from grantees Frequency: Annual Disaggregated By: Type of organization

232

94 private partners and 172 cooperatives (direct and indirect) who adopted improved technologies or management practices as a result of PSDAG technical assistance or co-investment under VCCF and CPP partnership mechanisms.

Type of organization 232

Private enterprises (for profit) 93

Producers organizations 139

Water user associations -

Women's groups -

Trade and business associations -

92

Community-based organizations (CBOs) -

New/Continuing 232

New 99

Continuing 133

EG.3.2-17*

12-Number of farmers and others who have applied improved technologies or management practices with USG assistance Source: FTF

Type: Outcome Method and Source: Progress reports from grantees Frequency: Annual Disaggregated By: sex, type of technology

23,634 Farmers (with formal business relationships with 39 SMEs and 60 cooperatives) who adopted improved technologies or management practices as a result of PSDAG co-investment or technical assistance support.

Beans 1,602

Technology type 1,602

Crop genetics, -

Cultural practices, 1,097

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, 505

Value-added processing, -

Disaggregates not available -

Sex 1,602

Male 581

93

Female 1,021

Joint -

Disaggregates not available -

Potatoes 3,481

Technology type 3,481

Crop genetics, 955

Cultural practices, 30

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, 446

Post-harvest–handling & storage, -

Value-added processing, -

Disaggregates not available 2,050

Sex 3,481

Male 1,944

Female 1,537

Joint -

Disaggregates not available -

Maize 4,701

Technology type 4,701

Crop genetics, -

94

Cultural practices, 4,681

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation,

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, 20

Value-added processing, -

Disaggregates not available -

Sex 4,701

Male 2,324

Female 2,361

Joint -

Disaggregates not available -

Horticulture 11,696

Technology type 11,696

Crop genetics, -

Cultural practices, 10,761

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

95

Irrigation, 185

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, 750

Value-added processing, -

Disaggregates not available -

Sex 11,696

Male 1,331

Female 10,365

Joint -

Disaggregates not available -

Other crops 102

Technology type 102

Crop genetics, -

Cultural practices, -

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, 102

Value-added processing, -

96

Disaggregates not available -

Sex 102

Male 34

Female 68

Joint -

Disaggregates not available -

Dairy 2,052

Technology type 2,052

Crop genetics, -

Cultural practices, -

Livestock management, 2,000

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, -

Value-added processing, -

Disaggregates not available 52

Sex 2,052

Male 1,705

Female 347

Joint -

Disaggregates not available -

97

E.G.3.2-18*

13-Number of hectares under improved technologies and management practices with USG assistance Source: FTF

Indicator type: Outcome Method and Source: Progress reports from grantees Frequency: Annual Disaggregated by: Technology type, sex, value chain

629

Beans 189

Technology type 189

Crop genetics, -

Cultural practices, 189

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, -

Value-added processing, -

Disaggregates not available -

Sex 189

Male 36

Female 153

Joint -

Association-applied -

Potatoes 291

98

Technology type 291

Crop genetics, 64

Cultural practices, 127

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, -

Value-added processing, -

Disaggregates not available 100

Sex 291

Male 177

Female 114

Joint -

Association-applied -

Maize -

Technology type -

Crop genetics, -

Cultural practices, -

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

99

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, -

Value-added processing, -

Disaggregates not available -

Sex -

Male -

Female -

Joint -

Association-applied -

Horticulture 149

Technology type 149

Crop genetics, -

Cultural practices, 135

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, 15

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, -

100

Value-added processing, -

Disaggregates not available -

Sex 149

Male 108

Female 35

Joint 6

Association-applied -

Other crops -

Technology type -

Crop genetics, -

Cultural practices, -

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, -

Value-added processing, -

Disaggregates not available -

Sex -

Male -

Female -

Joint -

Association-applied -

Dairy -

101

Technology type -

Crop genetics, -

Cultural practices, -

Livestock management, -

Wild fishing technique/gear, -

Aquaculture management, -

Pest management, -

Disease management, -

Soil-related fertility and conservation, -

Irrigation, -

Water management-non-irrigation based, -

Climate mitigation -

Climate adaptation, -

Marketing and distribution, -

Post-harvest–handling & storage, -

Value-added processing, -

Disaggregates not available -

Sex -

Male -

Female -

Joint -

Association-applied -

EG.3.2-1*

14-Number of individuals who have received USG supported short-term agricultural sector productivity or food security training Source: FTF

Type: Output Method and Source: PSDAG training reports, progress reports from grantees Frequency: Quarterly Disaggregated by: Sex, type of individual

1,401 5,955

Farmers trained on improved agronomic and post-harvest handling practices and techniques to enhance their capacities to meet scale and quality market requirements. Target exceeded because cooperatives under CPP reached more farmers (4,500) than anticipated (540).

Type of individual 1,401 5,757

Producers (farmers, fishers, pastoralists, ranchers, etc.) 1,401 5,717

Sex 1,401 5,755

102

Male 981 2,964

Female 420 2,791

Disaggregates not available - -

People in government (e.g. policy makers, extension workers) - -

Sex - 40

Male - -

Female - -

Disaggregates not available - -

People in private sector firms (e.g. processors, service providers, manufacturers)

- 40

Sex - 160

Male - 95

Female - 65

Disaggregates not available - -

People in civil society (e.g. NGOs, CBOs, CSOs, research and academic organizations)

- -

Sex - -

Male - -

Female - -

Disaggregates not available - -

EG.3.2-x27 Custom

15-Number of members of producer organizations and community based organizations with USG assistance Source: FTF archived, Custom PSDAG

Indicator Type: Output Method and Source: Progress reports from grantees Frequency: Annual Disaggregated By: Type of organization, sex

39,114

Members of 60 cooperatives supported directly or indirectly through partnership with 39 SMEs under VCCF program and Cooperative Professionalization Program.

Type of organization 39,114

Producer organization, 39,114

Non-producer-organization CBO -

Disaggregates not available -

103

Sex 39,114

Male 16,022

Female 23,092

Disaggregates not available -

EG.3.2-4 *

16-Number of for-profit private enterprises, producers organizations, water users associations, women's groups, trade and business associations, and community-based organizations (CBOs) receiving USG food security related organizational development assistance Source: FTF

Indicator Type: Output Method and Source: PSDAG records Frequency: Annual Disaggregated By: Type of organization, new/continuing

99

SMEs and cooperatives directly supported by PSDAG under VCCF program under Cooperative Professionalization Program, to co-invest in upgrading (aggregation, processing, marketing) agricultural value chains.

Type of organization 99

Private enterprises (for profit) 39

Producers organizations 60

Water users associations -

Women's groups -

Trade and business associations -

Community-based organizations (CBOs) -

New/Continuing 99

New 11

Continuing 88

EG.3.2-3*

17-Number of micro, small, and medium enterprises (MSMEs), including farmers, receiving agricultural related credit as a result of USG assistance Source: FTF

Indicator Type: Output Method and Source: Progress reports from grantees Frequency: Semi-annual Disaggregated by: Size of MSME, Sex of owner

4,789

Farmers, SMEs and cooperatives facilitated to access funding as a result of PSDAG support to under VCCF program and technical assistance to financial institutions such as KCB, RIM, and Duterimbere MFI.

Size 4,789

Micro 4,789

Small -

Medium -

104

Sex of owner/producer 4,789

Male 1,078

Female 3,676

Joint 17

n/a 18

EG.3.2-6*

18-Value of Agricultural and Rural Loans as a result of USG assistance (US$) Source: FTF

Indicator Type: Output Method and Source: Progress reports from grantees Frequency: Quarterly Disaggregated by: Type of recipient, Sex, type of beneficiary

749,730 2,407,468

Value of loans accessed by farmers, private partners and cooperatives, facilitated by PSDAG support under various partnership mechanisms including VCCF program, Cooperative Professionalization Program and technical assistance to financial institutions (BRD, KCB, RIM). Target exceeded because KCB and Umutanguha disbursed more loans ($949K) than anticipated ($446k). In addition, Umutanguha also disbursed ($540k) than anticipated ($0).

Type of loan recipient (US$) 749,730 2,407,468

Producers 486,613 2,205,788

Local traders/assemblers, 53,572 195,866

wholesalers/processors, 191,369 5,814

Others. 18,176 -

Sex of recipient (US$) 749,730 2,407,468

Male, 500,859 1,539,958

Female 195,002 781,929

Joint 53,869 85,581

n/a - -

4.5.2-Z04

19-Number of MSMEs receiving business development services from USG assisted sources Source: USAID/Rwanda Custom

Indicator Type: Output Method and Source: PSDAG records, Grantee reports Frequency: Annual Disaggregated by: Size of MSME, MSME Type, sex of owner

18

SMEs and cooperatives facilitated to access business development services under various PSDAG partnership mechanisms including VCCF program and Cooperative Professionalization Program

105

Size 18

Micro 4

Small 8

Medium 6

MSME Type 18

Agricultural producer 5

Input supplier -

Trader 2

Output processors 6

Non-agriculture -

Other 5

Sex of owner/producer 18

Male, 5

Female -

Joint 9

n/a 4

EG.3-9 20-Number of full-time equivalent (FTE) jobs created with USG assistance (RAA) Source: FTF

Indicator Type: Outcome Method and Source: Grantee reports Frequency: Annual Disaggregated by: Location, duration, and sex

- 185

Jobs created by private companies and cooperatives as a result of partnering with PSDAG under various programs including VCCF and Cooperative Professionalization Program.

Location - 185

Urban/peri urban 83

Rural 102

Duration - 185

New 180

106

Continuing 5

Sex of owner/producer - 185

Male, 99

Female 86

Not disaggregated -

Custom PSDAG

21 - Number of persons trained by PSDAG to promote investment in agriculture Source: PSDAG/Custom

Type: Output Method and Source: PSDAG training reports, progress reports from grantees/partners Frequency: Quarterly Disaggregated by: Sex, type of individual

12 313

Persons working for GOR or financial institutions trained to equip them with requisite skills and tools to facilitate agricultural lending and private sector investment. Trainings conducted for financial institutions including BRD, KCB Duterimbere, RIM and Umutanguha. Target exceeded because Duterimbere trained 313 more than what was anticipated (0).

Producers (farmers, fishers, pastoralists, ranchers, etc.) - 313

Sex - 313

Male, - -

Female - -

Not disaggregated - 313

People in government (e.g. policy makers, extension workers)

12 -

Sex 12 -

Male, 8 -

Female 4 -

Not disaggregated - -

People in private sector firms (e.g. processors, service providers, manufacturers)

- -

Sex - -

Male, - -

Female - -

Not disaggregated - -

107

Custom PSDAG

22-Number of institutions including public agencies and financial institutions receiving PSDAG technical assistance to promote investment in agricultural sector Source: PSDAG/Custom

Indicator Type: Output Method and Source: PSDAG records Frequency: Annual Disaggregated By: Type of organization, new/continuing

6

GOR or financial institutions supported to facilitate agricultural lending and private sector investment.

Type of institution 6

Ministry -

Parastatal 1

Local authority -

Financial institutions 5

Others -

Duration 6

New -

Continuing 6

GNDR-8

23-Number of persons trained with USG assistance to advance outcomes consistent with gender equality or female empowerment through their roles in public or private sector institutions or organizations Source: USAID/F-Indicator

Type: Output Method and Source: PSDAG training reports, progress reports from grantees/partners Frequency: Quarterly Disaggregated by: Sex, type of individual

- 4,456

Target exceeded because of trainings conducted on gender and inclusive business models under the Cooperative Professionalization Program. PSDAG had planned to have completed the trainings in Q1 and Q2.

Producers (farmers, fishers, pastoralists, ranchers, etc.) - 4,456

Sex - 4,456

Male, - 2,199

Female - 2,257

Not disaggregated - -

People in government (e.g. policy makers, extension workers)

- -

Sex - -

Male, - -

108

Female - -

Not disaggregated - -

People in private sector firms (e.g. processors, service providers, manufacturers)

- -

Sex - -

Male, - -

Female - -