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Projects

Improving Market Systems for Agriculture in Rwanda (IMSAR)

Improving Market Systems for Agriculture in Rwanda (IMSAR) helps commercialise agriculture by improving the way agricultural market systems function, making them more effective, participatory (by including poor farmers and other disadvantaged groups) and more competitive.

Rwanda is currently going through a transformation process and the agricultural sector provides a huge opportunity to drive growth, create jobs and raise incomes for the poor population. Generating more than 50% of the export revenues, the agricultural sector can be grown and diversified with targeted investments to improve productivity and competitiveness in the global market. There are many people living in poverty and depending on agriculture who need different investments that focus on labour intensive crops and value-addition processes. If a clear agenda is agreed on to encourage more competition and private sector investments, the Government of Rwanda will be highly motivated and a committed partner in achieving these goals.

The Project

IMSAR builds on constraint-driven approaches, developing a clear vision for a more commercialized and industrialized agricultural sector, and transition strategies for the poor. It adopts a market development approach to increase the income of poor households by supporting market actors (including the poor) to adopt new practices (business models, products, services, rules, behaviours and norms) that improve the way markets work for the poor. The market actors include: poor men and women, firms, government agencies, business associations, financial institutions, and NGOs that have a legitimate role in the markets.  IMSAR facilitates change through the provision of a flexible package of technical assistance and access to finance.

The programme brings agribusinesses, lenders and investors together to design new financing products and mechanisms, testing and scaling them in the Rwandan market. IMSAR provides expertise and assists in:

  • Market Analysis. In-depth market analysis to identify the constraints facing the poor;
  • Strategy Development. Helps formulate market strategies based on the market analysis;   
  • Facilitation and advisory services to support market actors and interventions. Engages with market actors to encourage the uptake of new practices, facilitates market linkages, provides on-going support to interventions, and provides technical assistance to strengthen the capacity of the private sector and government agencies to respond to opportunities as they emerge during the reform of the market system;
  • Short or medium-term grant finance. This increases the levels of affordable finance available in the agricultural sector.

The programme engages with international, regional, and Rwandan agribusinesses and investors, building connections and making deals that drive inclusive growth. It prioritises the pro-poor impact for the most vulnerable groups, ensuring real benefits for the rural poor as they integrate into higher performing markets. IMSAR also works effectively with the Government of Rwanda, remaining independent but influential in improving government policy making and investments in key agricultural sectors.

Project Goal

The programme contributes to increasing the incomes of poor households in targeted agricultural market systems. It helps commercialise agriculture by improving the way agricultural market systems function, making them more effective, participatory (by including poor farmers and other disadvantaged groups) and more competitive. It aims to increase the incomes of poor households in targeted agricultural systems by making selected market systems work more effectively for poor farmers and Medium, Small and Micro Enterprises (MSMEs).

Results

The ultimate beneficiary will be the poor of Rwanda, with participation mostly in focus markets. This will be achieved through the provision of support and services to market actors with whom the programme will directly partner, or who will benefit from the published market analysis.

The outcome of the intervention will be that ‘Selected market systems work more effectively for poor farmers and MSMEs.’ The programme seeks to achieve the below results:

  • Increased sales among farmers and agro-enterprises;
  • Increase in the percentage of agricultural produce that has value addition; and
  • Increase in export diversification.

The programme will contribute to achieving an increase in the number of off-farm jobs created as well as an upsurge in the average incomes of poor farmers. 

Project partner

Palladium

Project countries

  • Rwanda

Project duration

04.2018 -04.2023

Funding

  • DFID

Working area

Enterprise