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Republic of Rwanda COUNTRY PROGRAMME EVALUATION

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Republic of Rwanda COUNTRY PROGRAMME EVALUATION Independent Offi ce of Evaluation Enabling poor rural people to over come poverty Republic of Rwanda COUNTRY PROGRAMME EVALUATION Enabling poor rural people to over come poverty International Fund for Agricultural Development Via Paolo di Dono, 44 00142 Rome, Italy Tel: +39 06 54591 Fax: +39 06 5043463 E-mail: [email protected] Printed at www.ifad.org/evaluation IFAD Printshop March 2012 Independent Office of Evaluation Republic of Rwanda Country Programme Evaluation March 2012 Report No. 2434-RW Document of the International Fund for Agricultural Development Photos Front cover: A wood carver with folding bowl holder - ©IFAD/Hans Dieter Seibel Page xxiii: Coabinamu. Pineapple growers preparing a new field - ©IFAD/Hans Dieter Seibel Page xxiv: Fodder grass cutter provided by an IFAD-funded project - ©IFAD/Fabrizio Felloni Back cover: Abateran tailoring cooperative - ©IFAD/Hans Dieter Seibel (left); Water harvesting pond (right) - ©IFAD/Fabrizio Felloni This report is a product of staff of the Independent Office of Evaluation of IFAD and the findings and conclusions expressed herein do not necessarily reflect the views of its Member States or their representatives to its Executive Board. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of IFAD concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The designations ―developed‖ and ―developing‖ countries are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. All rights reserved. © 2012 by the International Fund for Agricultural Development (IFAD) Foreword Poverty persists in Rwanda despite strong growth in both the general economy and agriculture. The country has a high population density and small average landholdings. This, combined with rapid population growth, makes it imperative to increase the country’s agricultural productivity, protect the natural resource base and identify alternative sources of employment and income for the rural population. The present country programme evaluation for the Republic of Rwanda covers the ten-year period of 2000 to 2010. Since 1981, IFAD has financed 13 projects for a total cost of US$284 million, of which loans have accounted for US$150 million. The Fund has overall been effective in supporting national strategies to address the aforementioned issues. IFAD-supported interventions have helped protect soil fertility and watersheds, and increase the productivity of food crops. They have also helped promote traditional export crops - coffee and tea — which play an important role in reducing the trade balance deficit. Finally, they have contributed to creating non-farm employment opportunities in micro and small enterprises. The performance of the portfolio has improved significantly since the country programme evaluation of 2005, especially with regard to effectiveness and efficiency, and impact on household incomes and food security. A key contributing factor has been the stronger policy and institutional environment the country has built up over the past decade. IFAD for its part has improved the alignment of its interventions with national strategies and has introduced direct supervision and implementation support together with country presence. While IFAD’s cooperation with Rwanda has been solid at the project level, less resources have been devoted to non-lending activities (forging partnerships, policy dialogue and knowledge management). The key programme challenges (rural finance, cooperative development, support to local governments) are however of a systemic nature and therefore cannot be adequately addressed by project components alone. Furthermore, the scaling up of innovations or successful experience calls for greater involvement in non-lending activities. The Government’s move towards further harmonization of international cooperation calls for adapting to a more coordinated approach to cooperation, whereby IFAD would place adequate emphasis on non-lending activities and higher-level institutional issues, particularly in the above mentioned areas of rural finance, cooperative development and support to local government. The evaluation report includes an agreement at completion point summarizing the main evaluation findings. It also presents the recommendations agreed upon between the Government of Rwanda and IFAD, together with proposals as to how and by whom they should be implemented. Luciano Lavizzari Director, Independent Office of Evaluation of IFAD Acknowledgements This country programme evaluation was prepared under the responsibility of Fabrizio Felloni, Senior Evaluation Officer, Independent Office of Evaluation of IFAD (IOE) with contributions by consultants Jakob Grosen (consultants’ team leader), Hans Dieter Seibel (rural finance and private-sector development), Jean-Marie Byakweli (agriculture and rural development), Jean-Pierre Murenzi (agricultural marketing, value chain and business development) and Kalisa Mbanda (institutional development). Internal peer reviewers from IOE (Luciano Lavizzari, Director; Ashwani Muthoo, Deputy Director; Anne-Marie Lambert, Senior Evaluation Officer; and Andrew Brubaker, former Evaluation Officer) provided comments on the approach paper and the draft report. Ousmane Badiane, Director for Africa of the International Food Policy Research Institute, provided useful insights during the evaluation design phase. Liesbeth Kellens and Luigi Cuna provided useful desk review support. Lucy Ariano, Evaluation Assistant, provided administrative support. IOE is grateful to IFAD’s East and Southern Africa Division for their inputs at various stages throughout the evaluation process. Appreciation is also due to the Government of Rwanda for their continuous constructive collaboration and for coorganizing the national roundtable workshop held in Kigali in September 2011. Contents Currency equivalent, measure and fiscal year iii Abbreviations and acronyms iii Maps of IFAD-funded ongoing and closed operations in Rwanda v Executive summary vii Agreement at completion point xv I. Introduction and background 1 A. Introduction 1 B. Overview of IFAD assistance 1 C. Objectives, methodology and process 2 II. Country context 4 A. General country characteristics 4 B. Economic, agricultural and rural development 6 C. Poverty characteristics 12 D. Government budget, policies and programmes for rural poverty reduction 14 III. Description of IFAD country strategies and operations 18 A. Country strategies 18 B. Description of operations in the CPE timeline 23 IV. Portfolio performance 26 A. Overall performance 26 B. Rural poverty impact 40 C. Other evaluation criteria 49 D. Overall portfolio achievement 54 V. Performance of partners 56 A. IFAD 56 B. Government 58 C. Cooperating institution 60 VI. Assessment of non-lending activities 61 A. Policy dialogue 61 B. Knowledge management 63 C. Partnership building 64 D. Technical assistance grants 66 E. Efficiency of non-lending activities 68 F. Overall assessment of non-lending activities 69 VII. COSOP performance 70 A. Relevance 70 B. Effectiveness 74 C. Assessment of overall COSOP performance 76 D. Overall assessment of the Government-IFAD partnership 77 VIII. Conclusions and recommendations 78 A. Conclusions 78 B. Recommendations 82 Annexes 1. Ratings of IFAD-funded project portfolio in Rwanda 87 2. List of IFAD-financed projects in Rwanda, 1981-2010 88 3. Information on grants 90 4. Approach paper for the Rwanda CPE 92 5. Evaluation framework 110 6. Definition of the evaluation criteria used by IOE 116 7. Persons met and institutions visited 117 8. Bibliography 122 9. Themes/sectors addressed by the projects covered by the CPE 128 10. Country Policy and Institutional Assessment data and progress towards the Millennium Development Goals 129 11. Background data on agricultural production in Rwanda 130 12. Background on the Girinka programme 131 13. IFAD’s compliance with the Paris Declaration according to the OECD 2006 Monitoring Survey 133 14. Rwanda country project portfolio review 2010 — monitoring of project milestones 134 15. Evolution of IFAD’s interventions in Rwanda 135 16. Ranking of IFAD-supported districts 137 Working papers The working papers are available upon request from the Independent Office of Evaluation of IFAD ([email protected]). 1. Rural finance 2. Agriculture and natural resource management 3. Rural non-farm enterprises 4. Decentralization and capacity/institutional development ii Currency equivalent, measure and fiscal year Currency equivalent Currency unit = Rwandan Franc (RWF) 1 US$ = 590 RWF Measure Metric measure Fiscal year Fiscal year: 1 July — 30 June Abbreviations and acronyms This report follows the practice in Rwanda of referring to local institutions by their French abbreviation/acronym, even in English documents. AfDB African Development Bank AFR Access to Finance Rwanda Programme BPR Banque Populaire du Rwanda BRD Banque Rwandaise de Développement Rwanda Development Bank CCI community innovation centres CIP Crop Intensification Programme CLGS Local Watershed Management and Supervision Committee CPE country programme evaluation CPM country programme manager DFID Department for International Development (United Kingdom) DSF Debt Sustainability Framework EDPRS Economic Development and Poverty Reduction Strategy ESA East and
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