Acceptance Sheet

ACCEPTANCE SHEET This thesis “Impact of Agricultural Support Projects on Poverty Reduction in Rwanda “written and submitted Bernard NAYISABYE in partial fulfillments for the Degree of Master of Business Administration (Project Management) is hereby accepted and approved.

………………………… Supervisor

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………………………………… …………………………… Examiner Examiner

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Dr.Augustine RUTAMU Dean of Faculty of Economic Sciences and Management

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DECLARATION AND COPYRIGHT

I Bernard NAYISABYE hereby declare that this thesis is my own original work. To the best of my knowledge it contains no materials previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at the INILAK or any other institution, except where due acknowledgement is made in the thesis. Any contribution made to the research by others, with whom I have worked at INILAK or elsewhere is explicitly acknowledged in the thesis. I also declare that the intellectual content of this thesis is the product of my own work, except to the extent that assistance from others in the thesis’s design and conceptions or in style, presentation and linguistic expression is acknowledged.

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No part of this thesis may be reproduced, stored in any retrieval system, or transmitted in any form or by any means without prior written permission of the author or the INILAK.

AKNOWELGEMENTS

I could not have completed this thesis and realized my dream, without moral, material and financial support or otherwise, given by various people who deserve recognition and thanks. While those I am indebted to are too many to mention individually, some deserve special recognition. I extend my thanks and heartfelt gratitude to my supervisor and teacher,

Doctor Marceline Kamande, for the unreserved commitment, academic guidance counseling and support she extended to me. Special thanks go to Mr. Mubiligi Prosper whose financial support triggered my desire to start and Complete this course.

I wish top most sincerely, recognize my respondents like the General executive

Secretary of PDCRE, the President of Abakundakawa cooperative at Rushashi and the executive secretary of Abakundakawa cooperative who were not hesitant to provide me with the required information. To Abakundakawa facilitators, Rushashi sector Agronomist and local leaders for their support and cooperation during the research study that constituted the core of this thesis. My sincere and heartfelt thanks go to my Grandmother Nyirabagabe, my

Aunt Ms. Matilida Mukakalisa, and Mss. Protile and Petronile, my Father Rukebesha

Ezeshias, and, the family of Boniface Niyonkuru Richard to lay my foundation for this goal and for their unending love, care, support and encouragement

I cannot forget my dear wife, child Ishimwe Gervais: my sister Nyirahabimana

Margueritha and her daughter Uwiragiye Anne, my brother,Nzirorera Manasse, my uncle, Dr

Ntegeyibiza Samuson and my sister-in-law Felicite, Sara who was always by my side, caring for me and offering me all-round support to carry on this mission. I am also indebted to my dear friends; Mr. Haguminshuti J.Baptiste, Karangwa Theoneste and Emmanuel Ngirinshuti whose moral and financial support can never be ignore.

Bernard NAYISABYE

DEDICATION

ACRONOMYS AND ABREVIATIONS

% : Percentage

AFDB : African for Development Bank

AKS : Agricultural Knowledge systems

ARD: Agricultural and Rural Development

ASP : Agricultural Support Projects

CAADP: Comprehensive for Agriculture in Africa Development Program

CWS : Coffee Washing Station

DFID : Development Funds International Development

FAO : Food Agriculture Organization

FT : Fair Trade

GDP : Gross Domestic Product

GOR : Government of Rwanda

H1 : Hypothesis one

Ha : Hectare

Ho : Hypothesis Zero

IFAD : International Fund for Agricultural Development

INILAK : Independent Institute of Lay Adventists of Kigali

MINAGRI : Ministry of Agricultural and Animals resources

MINECOFIN : Ministry of Economic planning and Finance

MTS : Medium Term Strategy

NAEB : National agricultural Export Development Board

NEPAD : New partnership for Africa Development

NGO : Non Gouvernement organisation

OCED : Organization Cooperation for Economic Development

PDCRE : Projet d’exploitation des cultures et d’exportation des cultures de rent

RCA : Rwanda Cooperative Agency

RD : Rural Development

RMCs : Region Member Countries

SACCO : Saving and credit cooperatives

SSA : Sub-Saharan Africa

TWIN : Twin Trade

UN : United Nation

USD : United States Dollar

LIST OF FIGURES

LIST OF TABLES

TABLE OF CONTENTS

ABSTRACT

An overwhelming majority of the population in Africa relies on subsistence agriculture for their livelihoods. Agriculture also contributes to a large percentage of the national income. Yet in Africa, agricultural productivity is extremely low, which is correlated with several intertwined factors, such as the low use of improved technologies, market failure and obsolete or lack of basic equipments. Smallholder farmers are caught in poverty traps and are unable to participate either in the input market, partly because they cannot afford to purchase the inputs, or in the output market because they do not produce enough and/or market linkage is missing. Therefore, agricultural support projects and agricultural programs raised on poverty reduction in agriculture sector in Rwanda. This study looks at the PDCRE support activities to Abakundakawa Cooperative working in Rushashi Sector, Gankenke

District, Northern Province of Rwanda. Thus, the first objective is to assess how PDCRE support activities contribute to increase coffee quantity and coffee quality of Abakundakawa,

The second objective is to determine the level extent of poverty reduction among

Bakundakawa; the third objective is to determine the relationship between PDCRE support activities and poverty reduction among the beneficiaries. The analysis is based on the sample of PDCRE beneficiary’s surveys in Gakenke District, covering the period of 2008 to

2011where, chi-square calculated is 10.748 while chi-square tabulated is 3.841. Since the chi- square calculated is greater than the Chi-Square critical value we reject null hypothesis. Also,

P.value (probability value) calculated is 0.002 and it is less than the P.value tabulated which is 0.005. While P.value tabulated is greater than the P.value calculated the null hypothesis should be rejected. Therefore, there is a significant relationship between agriculture support project of PDCRE and poverty reduction to Abakundakawa cooperative.

CHAPTER ONE: GENERAL INTRODUCTION

1.1. Background of the study

Poverty in Africa and in Sub-Saharan Africa (SSA) in particular, has remained constant over the last two decades. For instance, between, 1991 and 2005, the poverty rate in SSA has shown no sustained decline in that it remained at around 50%.In absolute terms, the number nearly doubled from 200 to 380 million people. Over the same period, poverty had been declining elsewhere in the developing countries (World Bank, 2008)

The Ministry of economic and Finance (MINICOFIN), characterized Rwanda as also the landlocked, resource-poor country where the population is about 11,689,696 million, and 87 per cent of Rwandans live in rural areas (MINICOFIN, 2012). Population density in the country is the highest in Africa, with about 370 persons/km². The characteristics of agriculture and the rural economy present the most important issues for consideration of the factors behind agricultural and rural policies. They also provide the key to an accurate understanding of the nature of Rwanda’s agricultural support projects (World Bank, 2012a).

Many recent studies focus specifically on quantifying the relationship between agriculture support project and poverty reduction. Bresciani and Valdes (2007) frame their analysis in terms of three key channels they say links agricultural support projects to poverty

reduction: labour market, farm income, and food prices. They provide a theoretical framework for investigating the quantitative importance of those various channels and then report findings from six country case studies. They conclude that when both the direct and indirect effects of agricultural support projects are taken into account, such growth is more poverty reducing than growth in nonagricultural sectors.

A paper produced by DFID (2004), emphasizes the historically close correlation between different rates of poverty reduction over the past 40 years and differences in agricultural support projects particularly the rate of growth of agricultural productivity.

Agriculture’s contribution to growth and the generation of economic opportunity.

Agricultural support projects maintain higher levels of income, making small farmers able to construct decent houses, send their children to school and provide health insurance to sustain rural livelihoods (Chambo, et al, 2007). They also, have the advantage of accessing co-operative education and business development capacity building. Co-operative education enables them to participate in democratic debates and exercising democratic principles and leadership training. This gives them the ability to become enlightened citizens able to debate more effectively different political issues of concern to the community. But through cooperative education and practice, they also gain the skills of running business. That is why; rural development would greatly be enhanced, if people became members of agricultural cooperatives in general.

In this research, Agricultural support project of “Projet de Development de Culture de

Rent et d’exportation” (PDCRE), adopted farmers Field Schools approach from 2004 by training farmers on coffee cultivation in GAKENKE District in order to reduce poverty and maintain agriculture sustainability by increasing crop production. The support of PDCRE to

Abakundandakawa ba Rushashi investigated in three broad areas: Training on new

agricultural technologies, link them to markets, building washing. Therefore, the researcher focused to analyze the impact of agricultural support project of PDCRE in poverty-reduction of its benefiaries (Abakundakawa Cooperative).

1.2. Problem statement

Rwanda is a small landlocked country, situated in Central Africa. It is often called

The Land of a Thousand Hills (pays des Mille Collines) because of the innumerable rolling hills that cover the entire landscape ,90% of the population engaged in (mainly subsistence) agriculture. It is the most densely populated country in Africa; and has few natural resources and minimal industry. Primary exports are coffee and tea. MINICOFIN, (2012).

Faced with the prevalent poverty in the country, the Government of Rwanda (GoR) initiated different programs and agricultural support project to address poverty reduction in agricultural sector. Among the agricultural support projects initiated in Rwanda was Project d’exploitation des cultures de rente et des vivrières Project (PDCRE), which helped the

Government of Rwanda in fighting the poverty in Rwanda.

Most donor agencies with the intention of commission study on impact of agricultural development were interesting reporting on their contribution to meeting the Millennium

Development Goals, with income generation and poverty reduction as main objective (WFP,

2012). Several studies (Dorward et al, 2008; Chirwa, 2007; Chinsinga and O’Brien, 2008), confirmed that agricultural support projects/program play the positive impacts on poverty reduction. Other studies (Dorward et al, 2008, Ricker-Gilbert and Jayne, 2009) have been focused on private sector displacement, NGOs, churches that all effect on agriculture support in poverty reduction.

PDCRE started in 2004 as agricultural support project on poverty reduction in

Gakenke District and was rolled out at national level in 2011. It has been given a lot activities people as a vehicle for reducing poverty. Even PDCRE supported Abakundakawa, some

PDCRE beneficiaries are not able to cover their family expenses of School fees payment, and health insurance (Gakenke, 2012). That why the researcher wanted research for analyzing impact PDCRE to Abakundakawa ba Rushashi.

1.3. Research objectives

Each research and every study should have the objectives and must meet their targets to do it in an efficient and valuable work, so the general objective, and also the following specific objectives are determined.

1.3.1. General objective

The main objective of this study was to investigate the impact of agriculture support projects on poverty reduction in Rwanda

1.3.2. Specific objectives

Specifically, the study guided by the following specific objectives:

1. To analyze how agricultural support of PDCRE trained Abakundukawa on new

Agricultural technologies

2. To determine how agricultural support project of PDCRE linked Abakundakawa

To new markets

3. To find out how agricultural support project of PDCRE built washing coffee

stations to Abakundakawa Cooperative

4. To assess how agricultural support project of PDCRE did increase coffee quantity, coffee

Quality, better prices, monthly income, saving and credits to Abakundakawa

Abakundakawa

4. Estabilsh the relationship between agricultural support project of PDCRE and

Poverty reduction level of Cooperative Abakundakawa members

1.4. Research Questions

A research question guides and centers your research. It should be clear and focused, and related to the objectives, as well as synthesize multiple sources to present your unique argument. This study was guided by the following research questions:

1. At which levels agricultural support project of PDCRE did train Abakundukawa

on new agricultural technologies, link Abakundaka to new markets and building

washing coffee stations?

2. At which levels of agricultural support project of PDCRE did increase coffee

quantity, coffee better price, monthly income, saving and credit of

Abakundakawa?

3. What is the relationship between agricultural support project and poverty reduction

levels of the Cooperative Abakundakawa members?

1.5. Alternative Research Hypotheses

As the name suggests, the alternative hypothesis is to null hypothesis; it states that there is some kind of relation between the dependent and the independent variables. The researcher tested the positive hypothesis (alternative hypothesis) and null hypothesis:

H1: There is significant relationship between PDCRE support activities and poverty reduction among the beneficiaries.

H0: There is no significant relationship between PDCRE support activities and

poverty reduction among the beneficiaries.

1.6. Significance of the study

Agricultural support activities are benefited to beneficiaries, either directly or indirectly.

As argued by (PDCRE 2011), beneficiaries of agricultural support projects are often selected on the basis of disadvantages they have suffered in the past either directly or indirectly in the social, economical, political and relegated to lower positions in society.

Morally, it is regarded as an instrument of justice al in so far as it calls for a systematic program for creating social opportunities, and bringing material benefits to a target group who would otherwise be deprived. Economically and psychologically a country can develop because of the participation of all its citizens. Agricultural support projects reduce the poverty reduction through different activities, equipments and financial support used for increasing agricultural production; that is why mainstreaming those innovations particularly in cash crop export could be brought at the forefront of government income. Politically, it suggests a program of upliftment by providing employment, services and welfare through the state and private resources. In a particular way, this study would benefited to the targeted of Rwanda

Government, Abakundakawa cooperative, donors, agricultural support projects and to others researchers.

To the Government of Rwanda

Firstly, the findings and recommendations of this research will be of important to the

Government of Rwanda (GoR) which has set up different initiatives that promote agricultural support projects in their own development. It is expected that the GoR, especially the

Ministry of Agricultural and animals resources, will set up different development strategies enabling projects beneficiaries to increase agricultural production in addressing themselves

development issues that affect them and also would ensure that the project support put emphasis on the beneficiaries needs while contributing to the poverty reduction.

To Abakundakawa Cooperative

Secondly, the study findings would be more benefic to Abakundakawa, whereby feeling of sense of cooperation and innovations from PDCRE trainings. The agricultural innovations will contribute to the well being of Abakundakawa and their poverty reduction.

To the donors

Thirdly, the results will be also useful to the donors. The research will be a basis to base their support of other projects for achieving the lasting results. The findings will also help the partners of Rwanda to make decisions on aid and check for further agriculture improvement.

To Agricultural support projects

The fourthly, the findings will be useful to Agricultural support projects (ASP) agencies. The findings of this study will be benefic to PDCRE in the process of management of its own projects and hence taking decision of its own development issues.

To other researchers

Fifthly, the findings of this study would provide the key orientation to other researchers to continue investigating the impact related to agriculture support projects on poverty reduction in other different areas.

1.7. Justification and rationale of the study

The expected impact of the Agricultural Smallholders Cash and Export Crop

Development Project (PDCRE) is to contribute agricultural support activities on poverty reduction in Rwanda especially to its beneficiaries (Abakundandakawa). Its specific objective

is to increase coffee quality and coffee quantity lead to better prices, the monthly income

,saving and credit of PDCRE beneficiaries.

This paper presents quantitative assessment of the potential farmers’ benefits from increases in the productivity of the coffee agricultural supported by PDCRE combined with the introduction of new markets and building washing coffee stations by PDCRE to

Abakundandakwa help them in poverty reduction.

1.8. Scope and limitation

This study focused on impact of agricultural support projects on poverty reduction in

Rwanda especially PDCRE supported to Abakundakawa cooperative. The study included independent variables which comprise training on new agriculture technologies, link

Abakundakawa to new markets and building washing coffee stations. Poverty reduction as dependent variable embraces increasing of coffee quality and coffee quantity, coffee better prices, monthly income, saving and credit. The researcher considered the period of 3 years that is starting from 2009-20011 for PDCRE support activities under International Fund for

Agriculture development (IFAD).The study was done in 6 months in order to cover the forgoing period in the project up mentioned.

The researcher encountered the following limitations in order to complete the research. The first limitation done by the research is to delimit my research topic as follow

ʺimpact of agriculture support projects on poverty reduction in Rwanda especially PDCRE supported to Abakundakawa from 2009-2011.Due to delimitation on time, the second limitation anticipation was respondendents’unwillngess to cooperate. The researcher did not take it for granted, but guaranteed that every respondent answer the question accordingly.

This was done by researcher asking the same questions in different ways, a method refers to as triangulation. The study carried out in Rushashi Sector, Gakenke District in Northern

Province of Rwanda.

1.9. Conceptual Framework According to Colander (2003), a conceptual framework is an analytical tool with several variations and contexts. It is used to make conceptual distinctions and organize ideas. Likewise, conceptual frameworks are abstract representations, connected to the research project goal that direct that direct the collection and analysis of data (Shields &Rangarijan, 2013). This study was based on theory of Leeuwis and van den Ban(2004), which looks on innovation systems in agriculture and rural development .The study done by Leeuwis and van den Ban sponsored by official organizations such as OCED and FAO, the concept of agricultural knowledge systems’ (AKIS) was introduced in the policy discourse. As Leeuwis and van den Ban, the concept was originated by an interventionist policy in agriculture based on the idea, in order to accelerate agricultural modernization; innovation transfer which should be strongly coordinated.

In one of its most recent versions (Rivera et al. 2002), the concept is broadened to include rural development and named AKIS/RD. The conceptual frame work justifies the rationale behind the investigation and gives the reason for searching new data and for analyzing, interpreting and synthesizing these data. This research study was guided by the following conceptual framework.

Figure 1: the conceptual framework of the study

Source: Researcher, 2014

Source: researcher, 2014

The above conceptual framework shows the relationship between the variables under study. The independent variable is PDCRE support activities and the dependent variable is poverty reduction.PDCRE support activities and poverty reduction is distinct but related terms. Associated with PDCRE support activities we have the concepts of training on new agricultural technologies, link Abakundakawa to markets and building washing coffee stations. These lead to related concepts which can be considered as dependent variables under poverty reduction and including: increasing of coffee quantity and quality, coffee better prices, increasing of their monthly income and increasing of their savings and credits. In fact,

PDCRE support activities supported Abakundakawa in reducing the poverty. In reverse, poverty reduction in socio-economic development may positively influence Abakundakawa, due to agricultural support activities of PDCRE done in Abakundakawa beneficiaries.

1.10. Operational definition of terms

The terms in this study are operationally defined to come out with the meaning of each concept under study.

Training on new agriculture technologies refers to train new agricultural technologies, innovations in order to increase coffee quantity and coffee quality. This will be measured using the following scale: 1 strongly agree, 2 Agree, 3 average, 4 Agree, 5 strongly Agree.

Link to new market refers to national and international markets or Misozi coffee

Company on which the growers are selling their coffee production. For the purpose of this study, the scale measurement was thus: 1Strongly Disagree, 2 Disagree, 3 Neutral, 4 Agree, 5 strongly Agree.

Building the washing coffee station (CWS) refers to built coffee washing station for mulching coffee Cherries and washing them in order to maintain coffee quality. The scale of measurement was thus: 1 Disagree, 2 Agree, 3 moderate, 4 Agree, 5 strongly Agree.

Increasing of coffee productivity refers to the estimated of total production the coffee grower gets per year. It will be measured en kilograms as below: 1=Very low, 2=Low,

3=Moderate, 4High, 5= very high.

Better price refers to the different prices of coffee received at the national or international markets. It will be measured by using the following scale: 1 strongly Agree, 2

Agree, 3 Neutral, 4 Agree, 5 strongly Agree.

Monthly income refers to the estimated total income (Rwf) per month a coffee grower gets from all economic activities, related to the coffee production. It will be measured as below: 1=strongly agree, 2=Agree, 3=Average, 4High, 5=very high.

1.11 .Organization of the study

The first chapter was a general introduction to the study. It discussed the background of the study, the research questions and objectives, the alternatives hypothesis, the significance of the study and its rationale, the conceptual framework and the scope and limitations

The second chapter reviewed different literature by different authors; it dealt with what they say on PDCRE support activities on poverty reduction. The literature reviewed also presented a summary and research gap of impact of PDCRE support activities and other linkages between agricultural support projects on poverty reduction in general.

The third chapter presented different methods that were used in research. It described the framework within which the research was conducted. The chapter presented the research design, study population, sample size and sampling techniques, data collection instruments,

validity and reliability of research instruments, procedure, data analysis and ethical considerations.

Chapter four presented and analyzed how PDCRE support activities do increase coffee quantity and coffee better prices. The study intended to examine the levels of poverty reduction among PDCRE beneficiaries (Abakundakawa) after PDCRE support activities.

The fifth chapter presented, interpreted and analyzed the findings before giving the recommendations and suggestions for further research.

CHAPTER TWO: LITERATURE REVIEW

This chapter provides a synthesis of the existing literature on poverty – reduction in

Rwanda and Agricultural support projects is important tool in agriculture Sector to poverty reduction. This literature review is organized under the following thematic areas in poverty reduction: Increase of productivity, Coffee better prices, Increase of coffee quality, Increase

of monthly income, training on new agricultural technologies, building washing coffee stations and coffee quality, production and monthly income.

2.1. Overview of Agricultural support projects (ASP)

Agriculture is vital for the development goals of promoting growth and reducing poverty in Africa. An estimated seventy percent of the population depends on agriculture for full-time employment and many others rely on agriculture for part of their household income.

Two hundred million Africans live with food insecurity. Economic growth in Sub-Saharan

Africa (SSA) has averaged closeto3 percent over the past 25years. However, per capita growth for the SSA pollution dependent on agriculture has been less than 1 percent.

Agricultural production has been increasing, at an average rate of 3.2 percent for the Middle

East and North Africa, but most of the growth is related to increasing the land area under exploitation rather than to increases in productivity. At current rates, it is estimated that

Africa will be able to feed less than half its population by 2015. Agricultural GDP per farmer has over the last two decades risen by 2% per annum in Asia, nearly 3%in Latin America but less than 1% in Africa. Farmers have been working harder, more people have taken up farming, but productivity has not increased.

In the early 2000s, when the international community agreed to implement the

Millennium Development Goals (MDGs) agriculture again became an important issue. The link between the goals of reducing extreme poverty and hunger and ensuring environmental sustainability and the potential of agriculture as an engine of growth in Africa.

In 2003, the New Partnership for Africa’s Development (NEPAD) and its

Comprehensive Africa Agriculture Development Program (CAADP), were launched to accelerate agricultural growth in the region. Also in 2003, African governments signed the

Maputo Declaration committing to a minimum allocation of 10% of their national annual budgets to agriculture Recent political for a confirmed the urgent need to secure and increase basic food staples. These are the Site Conference on Water for Agriculture and Energy

(December 2008), the FAO Summit of 2008, and the AU Summit (July 2009) on Investing in

Agriculture for Economic Growth and Food Security. As an expression of their strong commitment to support agriculture in Africa, in July 2009, the G8 pledged to provide US$ 20 billion over the next three years to increase food production on the continent The L’Aquila

Declaration further underscores the need for effective use of investments in the agriculture sector.

Since 2008, the operations at the Bank’s Agriculture and Agro-industry Department

(OSAN) have been guided by the Bank’s Medium Term Strategy (MTS), 2008 - 2012. Before then, the thrust and orientation of its operations were guided by the Agriculture and Rural

Development (ARD) Sector Bank Group policy of 2000. Although not necessarily being selective, the 2000 ARD Policy had multiple pillars and envisaged core assistance programs for agriculture and rural development, which served the intended development purpose at the time. This new Policy provided a broad framework of interventions in Regional Member

Countries (RMCs), addressing constraints endogenous to agriculture, which could, to a large extent, be dealt with within the confines of the sector

The MTS identifies four specific areas of priorities for the Bank: infrastructure, governance, private sector and higher education. The Bank’s investments in these core areas seek to contribute to the goal of poverty reduction, regional integration, human development and agriculture. The Bank’s level of support to agriculture needed to be reassessed based on a retrospective evaluation of its past and current operations in the sector.

A series of evaluation exercises on the operations of the Bank in the sector identified areas of weakness that need to be addressed to ensure better results and increased impact. The most recent of these is the AfDB/IFAD Joint Evaluation Report on agriculture policies and operations in Africa, which, among others, examined the approach taken in implementing the

2000 Policy on Agriculture and Rural Development. The evaluation concluded that the Bank should remain engaged in the sector, but with a clear, selective focus, and innovative approaches aligned with the Bank’s areas of comparative advantage and strategic goals. The report also notes the need for the Bank to work in a sharper and smarter way; moving away from multi-component projects. Consequently, purposeful partnerships based on complementarily, comparative advantage and specialization will be important in addressing the broad array of rural needs. Success will also hinge on whether greater attention is paid to the specifics of the country (World Bank,2013).

2.2. Empirical evidences of agricultural support project in poverty reduction

The paper shows that ASP pay impact on poverty reduction. As explained by the different authors ,ASP support their beneficiaries in different activities as new agricultural technologies, link its beneficiaries to markets and building washing coffee stations support .The result to their beneficiaries was poverty reduction by increasing of production and quality, better prices, monthly income, saving and credit .

2.2. 1. Increase of productivity and quality

According to theory Mellor (1999), has explained how agricultural production and quality improve better prices and monthly income for poverty reduction of farmers. Basically to (Thirtle et al. 2003), added that when the, production is growth can catalyze a wide range of direct and indirect effects that mediate the pathways to poverty alleviation.

An overview of several studies illustrates the variety of approaches contributing to the consistent finding that agricultural productivity is important for poverty reduction.

According research done by Datt and Ravallion (1998), on the factors that that contribute to agricultural productivity and quality On these output , Timmer (1997) , counsels agriculture support projects, for analyzing working area factors for improving agricultural income .He show that the countries with the highest agricultural growth per worker experienced have the greatest rate of rural poverty reduction . According to

Thirtle et al., 2001 and Irz et al. 2001), models the direct relationship between agricultural productivity and changes in poverty measures at the macroeconomic level across countries, the authors examined also the impact of land and labor productivity (yield and the land-to-labor ratio) as well as total factor productivity (agricultural value added) on the percentage of the population living on less than US$1 per day (the headcount index) using country-level data from the 2000 World Development Report, the findings suggested that agricultural productivity growth has a robust and consistent impact on poverty for all productivity measures. They calculate that a 1% increase in productivity is associated with a decrease of 0.62% to 1.3% in the percent of the population below the US$1 per day poverty line. Additionally, the authors regress the productivity measures against the human development index.

2.2.2. Coffee better prices

At this point, (Otsuka, 2000; Quizon (1989), started indicating how coffee quantity and coffee quality have increased the coffee prices turn back on the coffee growers in poverty reduction Bresil. The research conducting by Poulton, Dorward, and Kydd, (2005), added that the linkage of the farmers to markets tends to poverty reduction when there is broad based cooperation by farmers in market area and in labor-intensive production processes.

According to World Bank, (2007), notes that African countries have the potential in competitive of their agricultural production with new high value (price) of commodities of cocoa in Ghana, tea and flowers in Rwanda and Kenya, vegetables in Senegal, and fish in

Uganda. Additionally, labor-intensive non-traditional exports can reduce poverty through employment opportunities, for instance in Kenyan horticulture .According to Taylor and

Adelman (2003), suggest that the households will react differently to cash crop production opportunities and derive different welfare benefits from participation due to the heterogeneity and complexity of production systems and asset endowments

2.2.3. Increase of monthly income

According to Thirtle et al. (2001), suggested that poverty reduction depends on the production and consumption multipliers resulting from increased agricultural productivity.

However, where income, asset endowments and land distribution are highly unequal, the majority of the benefits will accrue to the elite and the new resources generated will be directed towards imported or capital intensive consumer goods, rather than to locally produced, labor intensive goods and services .Where inequality between the top and bottom income quintiles is greater, the income effect of agricultural growth is stronger for the highest quintile than the lowest. Where initial income inequality is smaller, agricultural growth contributes to an improvement in income distribution whereby the elasticity of poverty to agricultural growth declines successively with each higher income quintile

(Mellor 1999). Additionally, inadequate access to land constrains the potential for poverty reduction through smallholder driven agricultural development.

2.2.4. Save and credit

According to Khanker (2000), considers savings as an indication that influence the poverty reduction. He argues that credit programs do stimulate savings because microcredit

borrowers make mandatory saving every week, which they are entitled to withdraw at the account of their membership. In addition, he finds micro credits program has a positive impact in generating not only voluntary saving but also additional saving among the borrowers. Apart from saving it can be argued that there are other factors that may contribute towards poverty reduction of such poverty, for example; income and accumulative of assets of the household may be considered as additional causal factors. It is likely that with the introduction of micro credit program borrowers may have better income, better savings and more assets. Microcredit program extend small loans to very poor for self employment projects that generate income for their survival, allowing them to care for themselves and their families. He also described that in Pakistan, a variety of institutions from NGOs to private sector and government sponsored rural support programs are delivering microfinance services to the poor. Poor usually acquire loans from informal sources. Lack of income and resources force them to take loans to meet basic necessities of life and the hurdle of collateral leave them at the mercy of the informal avenues.

Basically the World Bank Microcredit Summit (1979) classified the microcredit program in Bangladesh as one of the most effective anti-poverty tools for poorest. The program extends small loans to unemployed poor people that are not bankable. These individuals lack collateral stable employment and therefore cannot meet even the most minimum qualification to gain access to formal credit. In developing countries, savings can be influenced by a number of factors other than income. In addition to the different social and demographic structure, there might be a difference between urban and rural locations, as small farmers deal with higher risks and fluctuation than urban wage earners and therefore tend to save a higher fraction of their income as a precautionary measure. Some studies suggest that a lack of financial institutions might increase household saving, as people have

to accumulate large amounts of saving to cover their needs and compensate for missing markets for mortgages, pensions, insurance and credit.

2. 3. Link between agricultural support projects and poverty reduction

This paper uses a unique, spatially-explicit the link between agricultural support project and rural poverty. We show that, by controlling for geographical and physical characteristics, Projects beneficiaries have higher rates of adoption new agricultural technologies improve, consequently, improve agricultural production .This Agricultural

Production of agricultural play impact in poverty reduction and food security world.

2.3.1. Training on new agricultural technologies

Training on new agricultural technologies has been the subject of many studies across different. Researchers from agronomists, economists and political sciences have studied impact of disciplines. Researchers from sociology, economics, political sciences, communication, and public health have studied the impact of training on innovation (Wejnert

2000).The first effort to study the diffusion new agricultural technologies can be traced to the work of George Simmel and Gabriel Tarde, who observe the imitative behavior occurring in small groups or communities, and established a relationship between these processes and changes occurring in societies (Dearing 2004; Wejnert 2002; Kincaid 2004;Nzirorera 2012).

The most useful theoretical framework for explaining impact of new agricultural technologies has evolved from investigation concerning agricultural innovations. It was not until the 1940s when the influence of the green revolution put pressure on researchers to study diffusion of agricultural innovations (Wajnert 2002; Kincaid 2004).

Although extension theory had been the object of impact of evolution, most extension agencies throughout the world have relied upon the diffusion of innovations model to design their extension strategies.Haug (2002), describe the evolution of extension theory in four

stages of extension theory in four stages: the classical or conventional top - down in production stage of extension, the transfer of technology in two-way communication mode; the ecological stage; and the intuitional stage The classical or conventional top-down communication in production stage of extension; the transfer of technology in two way-way communication mode, the ecological stage, and the institutional stage.However,he clarifies that this development occurred mainly in extension theory but has not been in policy or practice .

The traditional extension methods applied technology transfer or advisory approaches based on the DOI model. (Vanclay and Lawrencyce 1994; Schulz et al. 2004).Currently, many extension agencies work under the idea proposed by DOI model (Haug 2002).

Thus, for instance, Shah et al. (2002) illustrate how small investments in agricultural technology can benefit landless households directly through production of vegetables and fruits and indirectly through employment generation. Evidence from some Asian countries also demonstrates how small-scale technologies self-target the poor to increase their income levels. The inadequacy of explicit agricultural technology poverty linkages for several decades has not only complicated efforts to understand the relationship between agricultural technology and poverty reduction and to design ways to make agricultural technology more effective in lifting poor people out of poverty, but it has also made evidence on the agricultural technology poverty linkages partial and indirect

Agricultural technology refers to new inputs, methods, new process or new innovation to increase the production and productivity in agriculture. When we use agricultural inputs like land, labor, and capita to produce agricultural products like vegetable, crop. The transformation process is guided by technology. Thus, the level of agricultural production or productivity is guided by the technology we are using in farming. Sujan (2002) categorizes agriculture technology from subsistence technology to green revolution technology to gene

revolution technology. This is the evolution of technology in agriculture over long period of time. The basic intension is to increase productivity. When we talk about productivity, it means to increase the factor productivity like increase of labor productivity, increase of land productivity. So, we can divide agriculture technology into two categories one helps increase land productivity and helps increase labor productivity. In this sense, agriculture technology is different for different purpose. If it is for increasing labor productivity, the mechanical technology like tractor, combine harvester, thresher etc is new innovation that helps increase labor productivity

For several decades, the diagnoses of the linkages between agricultural technology and poverty have often been indirect and arising from the impact of technical change in agriculture or agricultural productivity growth (Pinstrup-Andersen and Hazell 1985;

Ahluwalia 1978; Dhawan 1988; Freebairn 1995; Fan and Hazell 2000; Datt and Ravallion;

1998). For instance, the predominant literature on the poverty linkage effects of agricultural growth during the 1970s tend to show that technical change in agriculture leads to more production, which in turn leads to increased incomes for households with land. The latter are believed to use most of the incomes they make from agricultural production in purchasing labor-intensive goods and services, thereby leading to second- and third-round effects of providing food security and more employment opportunities for the poor (Mellor 1976).

The production can be influenced by a wide variety of factors, including household factors (socio-economic, resource base), poverty reduction and perception towards organic farming. Rogers (2003), reviews that diffusion theory provides a model for the diffusion- innovation process, which extension professionals as change agents can use as a media which will attract innovators .According to Rogers (2003), the five important attributes of innovation related to an individual’s attitude toward an innovation and whose stage in the

innovation decision process summarized by Rogers are advantage, compatibility, complexity, observable and trial.

When all attributes are put together with the guide of an extension agent it enhances or speeds up to train the farmers who will be willing to receive the formal mind set the farmer had towards trained. The perceived attributes of innovation of innovation would vary according to individuals different personal characteristics (age, communication channels).Perception about these attributes of innovation will influence poverty reduction

.Based on training of the growers, Rogers (2003),divided innovation growers into five categories; innovators, early growers, early majority and laggards. Each category of trainees has different characteristics according to their socio-economic status, personality values, and communication behavior. This implies that how the extension service tends to communicate with the farmers because, when you communicate wrongly to the farmers there is the tendency of message misinterpretation and this will affect trainees. Rogers (2003), defined interpersonal delivery method as a face-to-face exchange between individuals. This explain that the extension services can speak to farmer based of face to face contact were if the farmer has difficulty in any of the stages he can share with the extension agent and correction will be made.

Thinking about training of new technologies, varieties and farming system in

Rwanda, the Government has engaged theirs efforts through of one of among many considerable such as RAB (Rwanda Agriculture Boarder).The RAB has also organized a wide plan under Coffee-RAB with “ To improve coffee productivity and grower incomes in the major coffee producing areas in Rwanda” Alston (2009), said that first of all, our policy is to make sure that we increase productivity and the quality of the coffee. And the second policy is to add value to the coffee. The third one is to move in specialty coffee from

maximum ordinary coffee, which is easy to make, easy to sell which does not bring value for money.

According to NAEB (2010), describes Five priority programs costing $9million have been identified to remove key binding constraints to success. These programs are: improving the use of good farming practices and integrated pest management ,systems through focused agronomist support; providing a voluntary turnaround support program for Coffee Washing

Stations that have the potential to become profitable; improving sales and distribution mechanisms through capacity building of private exporters; implementing a census and GIS study of all coffee producing regions; implementing value addition activities including Toll

Roasting in China, Toll Roasting in Middle East, and a partnership with M&S,these five key priority programs are supported by a number of other actions costing;$42.8million that are also crucial to the further development of the coffee industry. These actions are set out in five key areas production, processing, sales and marketing, research and development, infrastructure.

2.3.2. Coffee markets and pricing

According to Daviron and Ponte,( 2005), the global coffee market is currently plagued by 2 paradoxes, a coffee boom in consuming countries, and a coffee crisis in producing countries (over supply of low quality coffee and shortage of high quality coffee) which is actually driving the coffee market After the termination of the International Coffee

Agreement between producing and consuming countries in 1989, the coffee market has been in a flux, with market forces and over supply bringing down the coffee prices and hence income of farmers. According to ICO (2004), earnings by coffee producing countries (exports f.o.b) were some US$10-12 billion 15 years ago which has changed to around US$5 billion in

2003. Oxfam, (2001), though the percentage share of the retail coffee price goes to the farmer has gone above 10% in recent times; it hasn’t offset the declining prices.

A recent survey of coffee farmers in India and Nicaragua has shown that the farmers consider the weather and coffee prices to be their biggest concerns (Lewin, Giovannucci and

Varangis, 2004). Growers in regions such as Ethiopia, Guatemala, Mexico and Kenya are either, not harvesting coffee, using it for agricultural mulch or burning it as a source of fuel.

Also, coffee producers and importers have made a number of attempts to establish cartels, to limit supply into the final market and to drive up prices (Fitter, Kaplinski, 2001). There has also been a trend in the global coffee consumption patterns, with Arabica consistently taking up between 60% and 70% of the coffee exported (UNCTAD, 1995; ICO, 2004). And though approximately 2.25 billion cups of coffee are consumed everyday (Dicum and Luttinger,

1999), there is a shift towards consumption of specialty coffee in what is called the “latte revolution”, where consumers can choose from combinations of coffee origin, processing methods, packaging, social content and ambience (Daviron and Ponte, 2005). This global trend is sure to affect all producing countries, specifically East Africa’s coffee economy, as coffee is one of their main export crops. In response to this, for coffee in East Africa, liberalized markets might be best option for some countries, and regulated markets might be better for other countries (Ponte, 2002). But it is unclear what the best options are for the smallholder producers. One effect could be that this trends positively effects middle income and better off farmers as suggested by Seaman et al. (2001) for Save the Children, which showed that the disposable income will increase for middle and better of farmers, by between

10 to 20% if farmers move to specialty coffee markets. To counter this global trend, one of the options available to farmers/farmer organizations are certification schemes like Utz

Kapeh, Faire Trade, Café Practices, Rainforest Alliance and others, and some farmers are seen to be taking up these schemes to counter the global price fluctuations.

2.3.3. Building washing coffee stations and coffee quality

According to Roastmasters.com (2014), coffee in Burundi is mainly grown by smallholders who do not process it themselves but rather bring cherry that they grow to local washing stations. The best run stations pay more for quality cherry, meaning they are all fully ripe, well developed and brought rapidly so they can be immediately processed. According to

NAEB (2013), underlined the position of Rwanda coffee quality and quantity. Among the strategies for maintaining coffee quality Karibata(2012), increases washing coffee stations in order to maintain Rwanda coffee prices on international markets (the standard reference price for coffee worldwide), placing Rwandan fully washed coffee firmly in the fine coffee and specialty price range. Bazima (2011),focused on new agriculture strategies especially building washing 600 washing coffee stations around in the coffee growers that provide competition coffee quality where Rwanda continue to get the Cup Coffee Excellence on the

World.

2.4. Summary and Knowledge Gap

There is much empirical evidence for poverty reduction through agricultural support projects which increases agricultural production. Much of the literature suggests that this effect occurs through the impact on real household incomes, however there are multiple, complex pathways linking agricultural productivity to real income changes that respond to various market forces. There is strong evidence for indirect poverty reduction through employment generation, rural non-farm multiplier effects, and food prices effects; however contextual factors determine whether market forces resolve most favorably for the poor.

Furthermore, the resulting equilibrium in agricultural and labor markets may affect poor net food buying households differently than poor net food producers. The available evidence supports the theories that when farm incomes and the real wage rate increase and the rural non-farm economy grow, real household incomes increase and the percentage of the

population living below international poverty lines decreases. Nutritional status or other aspects of well being, such as health measures and education, may also improve.

The impact of agricultural of support projects in Rwanda, Roma, Sudan, America, and

Sengapol, indicates that the potential improvements can emerge through greater forms of involvement of project beneficiaries. Similarly, there are linkage of poverty reduction about the impact of agricultural support projects in Burundi, Uganda and Kenya. The case also illustrates both the potentials of agricultural support projects in Egypt and Botswana. In sum, the importance of productivity to agricultural sector growth and to poverty reduction is complex and depends on a variety of contextual factors including the initial distribution of poverty, asset endowments, strength of market linkages and the extent and nature of the poor’s participation in the agricultural sector.

This paper has sought to present the summary of impact of agricultural support projects on poverty reduction. Projects are linked to different activities that may improve

Millennium Development Goals (MDGs) related outcomes and poverty reduction and affect accountability at local, regional and national and international levels.

The cases cited in this paper represent a small amount of the extensive research that has documented the value, but also limitations, of agricultural support projects in poverty reduction. It would be too simplistic to label the different examples as" successful and unsuccessful "; instead there are valuable lessons to be drawn from the ways in which efforts at strengthening different support activities of PDCRE. The impact of PDCRE to

Abakundakawa can be identified through the lessons from specific experiences.

CHAPTER THREE: RESEARCH METHODOLOGY

In research process, it is extremely important to keep in forefront the methodology that will be used in undertaking the study. For the present research, the methodology will

consist in designing the study; describing the study population and sample size, research instruments, data gathering procedures and statistical treatment of data.

3.1. Case study profile

Abakundakawa cooperative is located in Gakenke district in the Northern part of

Rwanda. The cooperative is Fair Trade Certified. Abakundakawa is 1831 members’ cooperative that mills its coffee at the Rushashi washing station. The average altitude here is

1600 to 1800 meters for coffee production, the varietal is traditional Bourbon seed stock, and the typical wet process method is used, with sun-drying on raised beds or patio. This is a special micro-lot, separated from the bulk production of the Abakundakawa coop. This is produced exclusively by a women’s group, Duhingekawa, a sub-group of the coop, and a premium has been paid for this particular lot that is returned directly to the women producers.

Many of the women who are in the Abakundakawa group are women heads of household.

That means their husbands were likely killed at the time of the genocide. They are looking after their own children, but often they are also looking after orphans from families of relatives, and even of non-relatives, where both parents were killed Abakundakawa, (2004).

3.2. Research design

The research design of the study is a co- relational research design because the purpose of the study was to determine the relationship between independent and dependent variables of the research (Mugenda, 2003).

The study was a survey in which both qualitative and quantitative approaches where used to collect and analyze data as well as to present the results. The combination of the two methods made it possible to show the relationship between PDCRE support activities and poverty reduction among PDCRE beneficiaries (Abakundakawa).

According to Liaga and Gunderson (2000), described what we mean by quantitative research methods very well: Quantitative research is ‘Explaining phenomena by collecting numerical data that are analyzed using mathematically based methods (in particular- ar statistics).A questionnaire, with items designed to collect applicable numerical data, was used. The quantitative data, thus collected, was analyzed and results presented in items of mean, standard deviation and percentage and other relevant statistics displayed through tables

.The researcher assume that the respondents’subjectives attitudes and experiences were realistic and worthy of in-deph study and engaging their perspectives were critical to answering the relevant research questions (Ely,Anzul,,Friedman,Garner

&Steinmetz,1991;Terre Blanches &Durrheim 2002).

The Qualitative methods allow the researcher to gain direct experience of social practices in action, interviews and observations can give different understandings of a situation (Smith, 2001).Hence; I used a combination of different qualitative methods as a way to collect data that covered different aspects. This has also allowed me to compare the data before and after PDCRE support activities to ensure a more rigouracy analysis (Brad shown

&Stratford, 2000).A combined administered questionnaires, informal conversations and secondary data; I believe that this has strengthened my analysis. Despite certain limitations of the methods, I had a broader basis for evaluating my findings.

3.3. Population and Sampling Techniques

3.3.1. Population

The total population of Abakundakawa cooperative reaches 1831.This population was the basis for simple size determination. The population of interest of the study was

Cooperative administrators and Cooperative members.

3.3.2. Sampling

In order to get the sample size of PDCRE support activities to Abakundakawa beneficiaries in each cell the researcher used the Yamane’s formula, Glenn(1992).The sample size of the study was drawn from the target of the study which is 1831 from five villages taken from 5 selected cells taken from five Sectors whereby Abakundakawa’s members are living respectively Rushashi,Coko,Gakenke,Gashenyi and Minazi.The five cells were respectively Kageyo ,Kiruku, Buheta, Rukuru and Munyami.The five villages selected from the five cells were respectively Nganzo with 481 beneficiaries, Nyamasuka with

377beneficiaries,Rusebeya with 416 beneficiaries,Murandi with 271 beneficiaries and

Gihororo 286 beneficiaries. In order to get the sample size in each selected cell, the researcher used Yamne’formula.

Assume that:

n represents sample size;

N represents Universe size (whole population; here N=1831)

E represents the acceptable sampling error assuming 95 percent confidence level and

P=0.5.Thus, if the population size for PDCRE beneficiaries (Abakundakawa) was

1831, became 323, the sample size was:

Then = 323

The following table indicates the total population and sample size for 100% of the

study.

Table 1: Total population and sample size for 100% of the study

Sampled Cells Nameof Target Sample Sampling Sectors Sampled villages populati size Technique on Rushashi Kageyo Nganzo 481 85 Stratified random And purposive

Coko Kiruku Nyamasuka 377 66 Stratified random And purposive

Gakenke Buheta Rusebeya 416 73 Stratified random And purposive

Gashenyi Rukuru Murandi 271 48 Stratified random And purposive

Minazi Munyami Gihororo 286 51 Stratified random And purposive

Source: Researcher 2014

3.4. Research Instruments

The researcher used documents, observation, the self administered questionnaire to get information from PDCRE beneficiaries (Abakundakawa) and guiding questions

(interview guide) to collect data from project beneficiaries in hand, cooperative leaders in other hand. By collecting data with research tools, there were two types of data, primary and secondary data. Furthermore, the researcher used the document analysis to collect secondary data from some documents that may be available and used by PDCRE such as project design document.

3.4.1. Questionnaire

The project beneficiary’s questionnaire was distributed among project beneficiaries who know read and writes. To effectively administer this tool, the respondent were invited to fill the questionnaire comprise at a selected village where respondent were living. The questionnaire comprised both closed and open ended questions in accordance with predetermined objectives to the study and for effective data collection. The administration of questionnaire was focusing on a deep and detailed analysis of the relationship between agricultural support projects and poverty reduction in Rwanda. According to Khotari (2004), the semi structured questionnaire is appropriate since it is flexible, not expensive, and not biased. For effective data collection, the semi structured interview was administered to the forgoing groups separately depending impact of PDCRE supported Abakundakawa on poverty reduction among them. The concepts under the study were adequately covered in the questionnaire. Face -to –face structured questionnaire was admiterered to the respondents.

3.4.2. Observation

Data is generated by the researcher going into the research setting to experience and observe at fist hand a range of dimensions in and out of that setting. Direct observation

technique will serve a tool of data collection in this study. In fact, notes will be taken during or immediately after the observation. This technique is important because it helps understand the subject of study as the researcher is present in the area of study.

3.4.1. Validity and Reliability of the instrument

3.4.1.2. Validity

For a study to be of real meaning it ought to apply valid and reliable instruments.

Before actual research is done, the researcher has to make sure that the instruments are cheeked for validity and pre-tested to determine its reliability (Ochieng 2009).This done using the Content Validity Index (CVI coefficient be ≥ 0.70, then the instrument would be valid. Before administering the questionnaires, four experts in research, were selected to assess the relevant items of the questionnaire with the objectives of the research.

The total questions of the questionnaire were 30. After getting the feedback of those researchers the relevant questions were 24 and 8 questions were irrelevant. Therefore using the above relation of CVI, the calculation of validity of the questionnaire has given:

CVI=0.86

The questionnaire was valid because the calculated C.V.I is greater than 0.70

(Ochieng 2009).

3.4.1.3. Reliability

A pre-test study was carried out to determine the reliability of research instrument, namely; the questionnaire. Cronbach Alpha Coefficient was used to ascertain the reliability of the instrument. Should Cronbach Alpha coefficient be ≥0.70, then the instrument would be 40

reliable as recommended by Farided (2007). To test the reliability of questionnaire that was used in this study,the pre-test study was done with a total number of 25

Abakundakawa’members in that Rushashi business centre were used for the pretesting.

To calculate this alpha, the researcher used SPSS software, and the results are presented in table 2.

Table 2 : The Reliability of the instrument

Reliability Statistics Cronbach's Alpha Number of Items 0.891 48 Source: Primary data PDCRE beneficiaries (Abakundakawa), 2014

3.5. Data gathering procedures

In order to facilitate the procedure of data collection, the researcher obtained an introductory letter from Independent Institute of Lay Adventists of Kigali (INILAK) to

Abakundakawa Cooperative and Local Leaders in order to reach respondents. The questionnaire was administered to the respondent to collect primary data. Where some respondents were not able to write or read, questionnaire was read to them and the researcher was waiting for the questionnaire to be filled in. Open and face –to- face interviews were conducted and responses recorded on paper for later proof reading and editing of the responses.

In addition, secondary data was obtained in the form of reports from Abakundakawa annual report, Rushashi sector annual report, such as quarterly and annual reports, project documents like project plan on training on new agricultural technologies document, evaluation report, MINAGRI report and documents, MINICOFIN, NAEB, SNV, RAB,

Rwanda National Library documents all about agricultural support projects on poverty reduction in Rwanda.

Lastly, the key informants were used to collect data from Executive Secretaries for k, m, n,v and h villages. Key informants also include Abakundakawa Leaders, Secretary of project as well as one management of smallholder cash and Export crop project development

(PDCRE).

3.6. Statistical treatment

Collected data were crosschecked, cleaned and coded for their easy entry in Statistical

Package for Social sciences (SPSS).Data entry and analysis was done by the use of SPSS software; descriptive statistics namely frequency, percentage and histogram were used to analyze data on research objectives 1 and 2.

Pearson Product Moment correlation was used to analyze scores on objective three in order to establish the relationship between PDCRE support activities and poverty reduction of beneficiaries at 0.01 as level of significance. Scores got through interviews with key informants were descriptively analyzed to establish main trends of the qualitative data. The qualitative data gathered through the interview complemented the qualitative data got by coding the scores. Coefficient of determination (r2) was used to indicate the extent.

Table 3: Evaluation of the mean

Mean Range Numeric weight Interpretation

1 – 1.9 1 weak

2 – 2.49 2 Moderate

2.5 – 4.00 3 Strong

Source: Sanger, (2008)

Referring to this table the means ranges and the corresponding interpretation of the respondents’ responses to reflect their perception and rating of each variable(s) understudy.

This translation will assist in clarification of the means obtained from the descriptive statistics.

Table 4: Evaluation of Standard deviation

Mean Range Numeric weight Interpretation

St.dev ≤ 0.5 1 homogeneous of perception

St.dev ≥ 0.5 2 heterogeneous of perception

Source: Sanger, (2008)

This table represents the standard deviation and their corresponding interpretation of the respondents’ responses to reflect their perception and rating of each variable(s) understudy. This translation will assist in clarification of the standard deviation obtained from the descriptive statistics.

3.7. Ethical Considerations

When we engage ourselves in other peoples’ lives, through research, my ethical concern arise. First of all, it is important to protect the participants privacy and anonymity and to all personal and estimate information with care. {Kvole (1996, Dowling, (2000).

A researcher must also be careful not your course harm to the researcher beneficiaries, this could be physical or social harm which could result from publishing sensitive information. In my study, I have spoken to beneficiaries about their daily the and about their thoughts and opinions’ have said to take care in making sure these cannot be traced back to the participants ,real identity ,hance,I have been careful about the description of places and people that can be revealing and I want to emphasize that I can using pseudonyms throughout the thesis except for the two managers from the book and the president

Abakundakawa -PDCRE.

I am using their last names as their positions are official and not related to any specific Appagrap. I have also been trusted with secretive information of character that had

led me decibel not to share it my research at all. As I speak of power relations among actors within the, there is also sensitive information that I have chosen to share, but I am not pinpointing to a specific beneficiaries to protect certain participants identity. As a result then, throughout the analysis all the beneficiaries might not seen as present as I would have licked.

I have weighed these concerns, however, and found that it is not pivoted for this paper to

Cleary express who said these things.

It or further more important that the beneficiaries are fully aware of the researchers intentions and research objectives .so they know that they are participating in before they agree to take part .I explained to my impact what I am researching and the expectations . I also made sure they understood that what they say and do can be included in my thesis and also informed them that they could withdraw whenever they wonted 20 without any repercussions.

Pass of both an ethical deliminavia and a political opportunity. As a researcher I am in powerful position because the knowledge I create through my research has the potential to change the way that the world see my beneficiaries and their lives (Dowling, 2000).This has been an especially important aspect for me and if has greatly challenged me and occupied my mind all throughout the research process especially as the research has revealed circumstances. I did not expected and that took me by surprise .one success discovery was the fact that many farmers did not know very well what fair-trade is and I must admit(as reflection of my positionality) that I have dedicated substantial space for this finding in the analysis.

CHAPTER FOUR: PRESENTATION OF FINDINGS, ANALYSIS AND

INTERPRETATION

This chapter presents the results of the study and discussion of the results in line with research. Discussion of results was done in comparison with PDCRE support activities and poverty reduction among the beneficiaries. Still in discussing the study results, the findings were used to answer the research questions from which the study objectives evolved.

4.1. Socio-demographic profile of respondents

This section gives the identification of respondents according to their age, level of education and occupation (profession).It shows the distribution of respondents by gender, age, education level and occupation held with working in Abakundakawa cooperative.

4.1.1. Gender

PDCRE beneficiaries (Abakundakawa ) of both categories of sex participated in this study which ,in fact, aimed at analyzing variables related to PDCRE support activities and poverty reduction among Abakundakawa cooperative ba Rushashi. As shown in the table under, the study was carried out with 323 research beneficiaries. Data gathered indicated that

PDCRE beneficiaries include more women accountable at 220 (68%) than men accountable

102 (32%).Female beneficiaries were easily reached than their male beneficiary counterparts

in Abakundakawa cooperative. The findings is supported by one of the objectives of PDCRE vis-à- vis to it’ beneficiary targets whereby 70% of PDCRE beneficiaries were women

(Paterson et al., 2009), and most sponsorship beneficiaries are women (Mugisha, 2007).

Table 5: Profile of Employee Respondents

Item Description Frequency Percentage

Gender Male 103 32 Female 220 68

Age 18 – 28 26 8 29 – 38 99 31 39 – 48 103 32 49 – 58 89 27 Above 59 6 2

Level of Education No formal education 106 33 Primary level 164 51 Ordinary level 28 9 Secondary level 21 6 University 4 1

Occupation Agriculture 274 85 Commercial activities 29 9 Cattle rearing 8 2 Employee service 12 4 Source: Primary data from PDCRE beneficiaries, 2014

4.1.2 Age

The age of the 323 interviewed ranged from 18 to above 59 years. The table 5 shows also active ages of 39-48 years with the highest percentage of 32%.In conversation with these

respondents, they work very hardly because they begin to have more children who need much expenses of food, school fees and medical insurance. Amongst respondents selected from

PDCRE beneficiaries (Abakundakawa), 99 (31%) were aged between 29-39 years, 89 (27%) were aged between 49-58, 26 (8%) of respondents were aged between 18-28 years and 6(2%) of respondents were aged above 59 years. Talking with the last category of respondents who have above 59 years been very few because they are starting old stage.

4.1.3. Education levels

The table 5 demonstrates that amongst 323 respondents of PDCRE beneficiaries

(Abakundakawa), 106 (33%) were not educated, 164(51%) of respondents were certified with primary level, 28 (9%) of respondents have finished ordinary level, 28 (6%) where secondary level and 4 (1%) of respondents were Bachelor’s holders.

4.1.4. Occupation

In a study of PDCRE support, knowing the positions of the respondents was one of the data to be collected by the researcher. The table 5 that is above indicates the categories in which information was collected into PDCRE beneficiaries (Abakundakawa).

The implication of findings under occupation in table 5 shown that the high proportion of respondents 274(85%) were agriculturists, 29 (9%) of respondents occupied commercial activities, 8 (2%) of respondents were cattle rearing. The last category of respondents 12 (4%) have employee services.

4.2. PDCRE support activities in social-economic development to its beneficiaries

The first objective of the study was to assess how PDCRE support activities increase coffee quantity and coffee better prices on the markets. PDCRE support activities to

Abakundakawa were classified in three categories of innovation activities namely; training on

new agricultural technologies, link Bakundakawa to markets and building washing coffee stations. PDCRE beneficiaries were asked questions designed to assess how PDCRE support activities increased coffee quantity and coffee better prices.

4.2.1. PDCRE ‘trainings on new agricultural technologies

The first part of PDCRE support activities was to examine the level of understanding new agricultural technologies trained by PDCRE to beneficiaries (Abakundakawa).The findings are indicated in the table below.

Table 6: Training on new agricultural technologies

Item description Mean Deviation Comment The level of PDCRE trainings how coffee Strong,hete

cutting and mulching to Abakundakawa. 3.107 2.858 rogenous The level agricultural inputs and organic mineral

in improving coffee quantity and coffee better strong,

prices to Abakundakawa 3.361 2.189 homogenous Overall mean 3,234 Source: Primary data of PDCRE beneficiaries (Abakundakawa), 2014

The table 6 presents the findings showed the levels of understanding new agricultural technologies by PDCRE beneficiaries (Abakundakawa). The overall mean of 3.234 of respondents agreed that PDCRE training on new agricultural technologies was strong, means that PDCRE beneficiaries (Abakundakawa) have been understood how do coffee cutting,mulching,using agricultural inputs and organic mineral for increasing coffee quantity and coffee better prices at the markets .PCDRE trainings on new agricultural technologies to beneficiaries (Abakundakawa) is between 2.5 and 4.00 where these results reveals that

Abakundakawa ba Rushashi have been at strong level new agricultural technologies trained by PDCRE facilitators.

For additional information, PDCRE gave 200 cows to (Abakundakawa) where this

PDCRE support helped another Government program of one cow for one family program in poverty reduction in Rwanda especially to PDCRE beneficiaries. In cattle rearing these cows, they got manure which has been contributing to increase coffee quantity and coffee quality of

Abakundakawa at Fair Trade markets.

4.2.2. PDCRE linked Abakundakawa to markets

For other hand of PDCRE support activities, PDCRE tried to link its beneficiaries

(Abakundakawa) to markets across the world and national markets in order to increase

Abakundakawa coffee quantity, quality and better prices which motivate them. In this linkage of Abakundakawa to markets, PDCRE paid the shares and tickets for integrating

Abakundakwa into Misozi Coffee Company and other trainings on advantages and of searching coffee new markets.

Table 7: Link Abakundakawa to market

Item description Mean Deviation Comment PDCRE paid the shares to integrating Strong,

Abakundakawa Misozi company 3.201 1.868 homogenous

PDCRE search you coffee new markets Strong,

3.660 2.289 heterogeneous Overall mean 3,430 Source :Primary data of PDCRE beneficiaries (Abakundakawa),2014

The findings of table 7, indicates how PDCRE linked Abakundakawa to markets.In this table, respondents represented by the mean 3.201 were agree that PCDRE has paid the shares for integrating Abakundakawa into Misozi Coffee Company an their standard

deviation 1.868 is homogenious as it’ inferior 0.5.Respectively of PDCRE support for linking Abakundakawa to markets,the respondendents represented at mean of 3.660 confirmed that PDCRE searched Abakundakawa new markets across the world.The respondents represent the overall mean 3.430 situated 2.5 and 4.00 were strongly agree that

PDCRE linked Abakundakawa to markets at strongly level.

Gakenke Coffee,preciselly Muhondo coffee has got the cup coffee Excellence in the three yaers ago from 2012- 2014, Abakundakawa cooperative .Attending the meetting titled

“Monthly of Good Gavernance” in september 27,2014 at Rushashi Sector office,the Vice-

Mayor charge of economic in Gakenke District has explained that ˝ three cups coffee

Excellence were caming respectively in Gakenke District by coffee quantity and coffee quality that we sent at coffee Fair trade .Per consequent it brings high income to farmers which contribute for increasing GNP and poverty reduction in Rwanda˝.

4.2.3.PDCRE Training on building washing coffee station to Abakundakawa

The last PDCRE support activity for increasing coffee quantity,quality and better prices to Abakundakawa was trainings on how building coffee washing stations.In PDCRE trainings,Abakundakawa learned how building washing coffee station and it processing.

Table 8: Building washing coffee station

Item description Mean Deviation Comment PDCRE trained how to build and how to use Strong,

washing coffee station and it processing 3.365 2,498 homogenous

Source: Primary data from PDCRE beneficiaries, 2014

Table 8, indicates the level of understanding building washing coffee station and its process after PDCRE trainings. The respondents represent the mean of 3.365 of respondents situated between 2.5 and 4.00 on the table square were agree that they are trained at strongly level where standard deviation 2.498 falls ≥ 5.

According to Edwin B. Flippo (2011) confirmed that training is the act of increasing the knowledge and skills of employee for doing a particular job. Training involves the development of skills that are usually necessary to perform a specific job. It purpose is to achieve a change in behavior of those trained and to enable them to do their jobs better.

Training makes newly appointed workers full productive in the minimum of time. Trainings equally necessary for the old employees whenever machines and equipments are introduced and/or there is a change in the techniques of doing the things. In fact, training is continuous process. It does not stop anywhere .The managers are continuously engaged in training their subordinates. They should ensure that any training program should attempt to bring about positive changes in the (i) knowledge, (ii) skills, Performance of work. It includes the learning of such techniques as a required for the better a definite tasks.

According to Jhon.P.Jkeny and others (1979), training an individual means helping him to learn how to carry out his present job satisfactory. Development can be defined as preparing the individual for definite tasks. Edger H.Schein defines Management

Development as the problem of how an organization can influence the beliefs, attitudes and values of an individual for the purpose of developing him.i.e.change in him a direction which the organization regards to be in his own and the organization best interest. So adequacy of managerial performance can be considered as a matter of attitudes, knowledge and specifics and skills but itself, in part, a function, various training programs try to influences the managerial attitudes.

4.3. Levels of poverty - reduction to Abakundakawa after PDCRE support

The second of objective of the study was to assess extent levels on which PDCRE support activities has been reduced poverty. Relative to this studying the context of poverty reduction, NAEB refers increase cash crop export production whereby beneficiaries get

dollars from outside in order to increase national income. During the collection data, respondents were asked open-end and closed ended questions to measure the level of PDCRE support activities in poverty reduction to Abakundakawa ba Rushashi.

4.3.1. Increasing of coffee production by PDCRE support activities

This poverty reduction indicator is comparing the coffee harvesting of PDCRE beneficiaries before and After PDCRE support activities. As show by the findings in the following table, there is increasing of coffee quantity by PDCRE trainings how use ingredients and other coffee agricultural technologies permitted Abakundakawa producing the high coffee quantity and coffee quality at national and international markets.

Table 9: Increase of coffee production

Description Before After PDCRE PDCRE Frequency percentage Frequency percentage Between 100 -300 180 55.7 41 12.7

Between 300-500 67 20.7 66 20.4 Between 500-700 50 15.5 85 26.3 Between 700-900 20 6.2 206 32.8 Above 900 6 1.9 25 7.7 Total 323 100 323 100 Source: primary data of PDCRE beneficiaries (Abakundakawa), 2014

The finding of table 7 compares the coffee harvesting of Abakundakawa before and after PDCRE support activities. Comparatively, the majority of respondents 180 (55.7%), could get the coffee production situated between 100 and 300 kg before PDCRE support activities. Then after being PDCRE beneficiaries, the respondents of thirst category reduced from 180(55.7%) up to 41 (12, 7) where they were coming in the second and the third category of coffee harvesting. The second category of respondents 67 (20,7) ,could get the coffee harvesting estimated between 300 – 500kg before PDCRE support activities .This category of respondents was increased in coffee harvesting from 67 (20.7%) up to

85(26,5%) after PDCRE support activities. The four category of respondents 20 (6, 2%), who could get the coffee harvesting estimated between 700-900 kg before PDCRE support activities are very increased from 20 (6.2%) up to 106 (32.8 %) of respondents while the respondents 6 (1.9 %) of the last category who could get the coffee above 900 kg before

PDCRE are increased up to 25 (7.7%) after PDCRE support activities. Recently, the findings of Abakundakawa coffee harvesting before and after PDCRE support activities, PDCRCRE supports activities played positive impact for increasing coffee quantity and coffee quality of

PDCRE beneficiaries (Abakundakawa).

The most useful assessments of the impact on poverty of changes in agriculture are those that follow farming communities’ experiences over a long-term period (Lanjouw and

Stern, 1998; Hazell and Ramasamy, 1991). These studies showed that agricultural productivity gains have raised rural incomes in two ways: by directly increasing farmers’ incomes and, of particular importance to the poorest, by increasing employment opportunities and wages.

De Janvry and Sadoulet (1996) estimate that in Asia, a 10%increase in total factor productivity in agriculture would raise the incomes of small-scale farmers by 5%. Acharya and Sophal (2002) report that in a 2001 sample of smallholder rice-producing farms in

Cambodia, a 10% increase in yields resulted in an 8.8% increase in household incomes in dry season cultivation and a 4.4 % increase in wet season cultivation. Lipton and Longhurst

(1989) and Hazell and Ramasamy (1991) provide similar evidence.

4.3. 2.Monthly income before after PDCRE support activities

This indicator of poverty reduction helps us to know the living conditions before and after PDCRE support activities. The findings of the following table shows how much the

Abakundakawa income was very little before support activities considering the income obtaining after PDCRE support activities.

Table 9: Change of income by PCDRE support activities

Description Before After Frequency percentage Frequency percentage Between 20000-40 323 100 93 28.8 000frw Between 40 000-60 88 27.2 000frw Between 60 000-80 000frw 78 24.1 Above 80 000frw 45 19.5 323 100 Total Source: primary data of PDCRE beneficiaries (Abakundakawa), 2014

The study findings of table 10, illustrates the changement of income after PDCRE support activities to Abakundakawa.Remarkably, all respondents were able to find very little income between 20.000 and 40.000 frw per monthy.We have see a change after PDCRE support activies where activities 93 (28 %) of respondents confirmed that they are getting income estimeted between 20.000 and 40.000 frw,means that the the respondents 323 (100%) of the first category before PDCRE support were decreased after PDCRE support up to 93

(28%), they are increasing their monthly income by PDCRE support activities. They were following by the second category of respondent 88 (27 %) who said that they should getting income which is between 40.000 and 60.000 frw by PDCRE support activities.78 (24.1 %) of respondents could find income situatend 60.000 and 80.000 frw by PCDRE support activities while 45 (13.9),confirmed that they got income above which is 80.000frw after

PDRE support activities.

Table 11:The purpose of saving

Description Frequency Percentage

Credit payment 47 14.6

Better living 53 16.4

Health insurance 34 10.5

House payment 86 3,42 House building 11 6.6

Others 92 28.5

Total 323 100

Source: Primary data of PDCRE beneficiaries (Abakundakawa), 2014

The findings of table 9, indicate the role income in poverty-reduction of

Abakundakawa ba Rushashi where 47 (14.6%) of respondents use income for loan payment.

The following respondents 34 (10.5%), use income for taking health insurance or medical care for protecting diseases or unplanned accidents, 53 (16.4) of respondents use income in better living life, 86 (26.6 5%), use income in buying the house equipments,11 (3,4 % ) of respondents use income in house building while 92 (28.5 ) of respondents use income in other activities of school fees of children, business of trading, agricultural, cattle rearing, community activities (societies ,Ikimina);which help them to increase income and poverty reduction in their livings.

According to Loayza and Raddatz, (2006), shown that agricultural growth is relatively more important than growth in other sectors, there are exceptions underscoring the existence of potentially important differences in the sectoral GDP .Found the gains in income from off-farm sources was the main reason rural poverty.

4.3.2. Increasing of saving by PDCRE support activities

This indicator indicates how the comparative movement of saving before and after

PDCRE support activities. Abakundakawa could save a few money comparing their saving after PDCRE support activities. The following table indicates the findings.

Table 10: Savings before and after PDCRE support activities

Before After Description Frequency percentage Frequency percentage Less than 10 000 190 58.8 75 23 Between 10000-20000 56 17.3 120 37.2 Between 20000-30000 49 15.2 75 23.2 Above 30000 28 8.7 53 16.4 Total 323 100 323 100 Source: primary data of PDCRE beneficiaries (Abakundakawa), 2014

The findings of table 12, compares Abakundakawa savings before and after support

PDCRE activities in poverty reduction of PDCRE beneficiaries (Abakundakawa).The findings shown that 190 (58.8% of respondents could save less than 10, 000frw per month because their monthly income was still few, after being PDCRE beneficiaries the respondents of first categories reduced from190 (58.8%) to 72 (23.2%) of respondents after PDCRE support activities, the following respondents 56 (17.3%) of respondents could save between

10 000 and 20000frw were increased up to 120 (37.2%), the respondents 49 (15.2%) who could save between 20000 and 30 000frw per month, they were increased up to 75 (23%) of respondents, 28 (8.7) % of respondents who saved above 30000frw per month before PDCRE support, they were increased up to 53 (16.4) after PDCRE support activities.

4.3.3. Credits Bank in poverty reduction

This poverty reduction indicator is demonstrating how PDCRE beneficiaries have take credits before and after PDCRE support activities to bakundakawa ba Rushashi.As shown by the following table, PDCRE support activities in increasing income, permitted

Abakundakawa to take credits of long and short time. These credits help them to reduce the poverty by investing these credits in other activities generative income.

Table 11: Credits before after PDCRE support

Description Before After Frequency percentage Frequency percentage Less than 100000 194 59.3 46 14.1 Between 100 000-300 000 96 29.4 90 27.5

Between 300 000-500 000 28 8.6 61 18.7

Over 500000 5 1.5 126 38.5

Total 323 100 323 100

Source: primary data of PDCRE beneficiaries (Abakundakawa), 2014

The study findings of table 10, illustrate the movement information of credits Banks before and after PCDRE support activities, where 194 (59.3%) of respondents said that they should have the credit less than 100 0000 frw before PDCRE support while they are reduced up to 46 (14.1% ) after PDCRE support activities,96 (29.4) of respondents who could save

100 000 and 300000 frw raised to 90 (27.5%) of respondents while 28 (8.6%) of respondents who could save between 300000 and 500000frw,raised to 61 (18.7%),the high category of respondents 5(1.5%) who could save over 500 000frw before PDCRE support ,they were increase to 126 (38.5) after PDCRE support activities .told me that they could taking a credit accountable between 100.000-300.000 frw.The third category of respondents 28 (8.6%) of respondents could take the credits bank accountable between 300 000 and 500 000frw,while the fourth category of respondents 5 (1.5%) said that they could take a credit above 500

000frws before PDCRE support activities. The missing system of respondents 4 (1.2%), did understand the question.

Table 12: Chi-Square Tests

Value Df Asymp. Sig. Exact Sig. (2- Exact Sig. (1-

(2-sided) sided) sided) 57

Source: primary data (2014)

As indicated in the above table, chi-square calculated is 10.748 while chi-square tabulated is 3.841. Since the chi-square calculated is greater than the Chi-Square critical value we reject null hypothesis. Also, P.value (probability value) calculated is 0.002 and it is less than the P.value tabulated which is 0.005. While P.value tabulated is greater than the

P.value calculated the null hypothesis should be rejected. Therefore, there is a significant relationship between agriculture PDCRE support activities and poverty reduction to PDCRE beneficiaries (Abakundakawa ba Rushashi).

CHAPTER FIVE: MAJOR FINDINGS, RECOMMENDATION AND CONCLUSION

The purpose of the study was to examine the impact of agricultural support projects in poverty reduction in Rwanda; deeply PDCRE supported to Abakundakawa cooperative in support activities: Training on new agricultural technologies, link abakundakawa to markets and building washing coffee stations that reduced poverty to PDCRE beneficiaries

(Abakundakawa) Cooperative of Rushashi

5.1. Summary of major findings

The objectives of the study were respectively to determine how PDCRE support activities increase coffee quantity and coffee quality. To assess the levels of PDCRE support in poverty reduction to Abakundakawa and to establish the relationship between PDCRE support activities among Abakundakawa. Method descriptive, correctional research design and a total of 323 individuals from PDCRE beneficiaries (Abakundakawa) were used in this research.

If looking on the findings of the first objective in this study, have indicating that

PDCRE was trained at the overall mean of PDCRE training on new agricultural technologies was strong, means that PDCRE beneficiaries (Abakundakawa) have been understood how do

coffee cutting, mulching, using agricultural inputs and organic mineral for increasing coffee quantity and coffee better prices at the markets.

The mean 3.201 agreeded that PCDRE has paid the shares for integrating

Abakundakawa into Misozi Coffee Company while standard deviation 1.868 is homogenious as it’ inferior 0.5. Respectively , PDCRE linked Abakundakawa cooperative to new markets,the respondendents represented the mean of 3.660 confirmed that PDCRE has searched Abakundakawa new markets across world.Therefore,the respondents represent the overall mean 3.430 situated 2.5 and 4.00 were strongly agree that PDCRE linked

Abakundakawa to markets .

PDCRE trained Abakundakawa how build washing coffee stations and processing of

WCS. The mean of 3.365 of respondents situated between 2.5 and 4.00 on the table square were agreed that they are trained at strongly level where standard deviation 2.498 falls ≥ 5.

If looking at the second objective the study, it was to determine the extent levels of

PDCRE support in poverty reduction. The little coffee harvesting by using of predominantly traditional farming practices in broad terms provides the optimal conditions for a strategy for a model of agricultural development. The mean 3.201 were agree that PCDRE paid the shares for integrating Abakundakawa into Misozi Coffee Company and standard deviation

1.868 was homogenious as it’ inferior 0.5.

Respectively of PDCRE support for linking Abakundakawa to markets,the respondendents represented at mean of 3.660 confirmed that PDCRE searched

Abakundakawa new markets across the world.The respondents represent the overall mean

3.430 situated 2.5 and 4.00 were strongly agree that PDCRE linked Abakundakawa to markets at strongly level.efficiency gains from coffee harvesting based agricultural technologies where the majority of respondents 180 (55.7%), could get the coffee production situated between 100 and 300 kg before PDCRE support activities. Then after being PDCRE

beneficiaries, the respondents of thirst category reduced from 180(55.7%) up to 41 (12, 7), where they were coming in the second and the third category of coffee harvesting..

Still determining PDCRE extent levels on poverty reduction to Abakundakawa, the findings shown that PDCRE contributed for increasing Abakundakawa’income as one of indicators of poverty reduction Abakundakawa. In increasing income all respondents were able to find very little income between 20.000 and 40.000 frw per monthy.We have see a change after PDCRE support activies where activities 93 (28 %) of respondents confirmed that they are getting income estimeted between 20.000 and 40.000 frw,means that the the respondents 323 (100%) of the fist category before PDCRE support were decreased after

PDCRE support .

The credit Bank as the last one indicators on poverty reduction to PDCRE beneficiaries,Abakundakawa got enough credits for generative activities. The credits able to contributed on poverty reduction to Abakundakawa. 194 (59.3%) of respondents said that they should have a credit less than 100 0000 frw before PDCRE support and so, they are reduced up to 46 (14.1% ) after PDCRE support activities,96 (29.4) of respondents who could save 100 000 and 300000 frw raised up to 90 (27.5%) of respondents while 28 (8.6%) of respondents who could save between 300000 and 500000frw,raised to 61 (18.7%),the high category of respondents 5(1.5%) who could save over 500 000frw before PDCRE support

,they were increase to 126 (38.5) after PDCRE support activities told that they could taking a credit accountable between 100.000-300.000 frw. The third category of respondents 28

(8.6%) of respondents could take the credits bank accountable between 300 000 and 500

000frw, while the fourth category of respondents 5 (1.5%) said that they could take a credit above 500 000frws before PDCRE support activities.

At the third objective of determining the relation - ship between PDCRE support activities and poverty reduction, the descriptive analysis of SPSS found that the Chi-square

calculated was 10.748 while chi-square tabulated is 3.841. Since the chi-square calculated is greater than the Chi-Square critical value we reject null hypothesis, therefore, there is a significant relationship between PDCRE support activities and poverty reduction PDCRE beneficiaries (Abakundakawa). Looking ahead a more in-depth analysis of the PDCRE support activities and its effects on growth and poverty reduction in combination with studies of other developing nations may prove highly valuable source of learning. Unfortunately, only a limited study was feasible within the scope of this thesis

5.2. General Conclusion

Based on the results of the research, the following conclusions are drawn. It is true that agricultural support projects pray impact to the poverty-reduction of Rwanda, especially to its members in terms of increasing agricultural production, helping in savings, finding the credits, training benefits, obtaining easily health insurance, obtaining the cows, modern furniture at home and able to pay easily school fees of children.

Research question intended to what extent does agricultural harvesting plays in poverty reduction was answered as it was evidenced from the findings of the respondents of

PDCRE beneficiaries (Abakundakawa) who have got coffee harvesting appreciated at level of respondents 180 (55.7%), could get the coffee production situated between 100 and 300 kg before PDCRE support activities. Then after being PDCRE beneficiaries, the respondents of thirst category reduced from 180(55.7%) up to 41 (12, 7), where they were coming in the second and the third category of coffee harvesting increased.

The research question two, determines the extent level of income to Abakundakawa by PDCRE support activities where the study finding shown that all respondents were able to find very little income between 20.000 and 40.000 frw per monthy.We have see a change after PDCRE support activies where activities 93 (28 %) of respondents confirmed that they are getting income estimeted between 20.000 and 40.000 frw. As regard the relationship

between PDCRE support activities and poverty reduction on Abakundakawa beneficiaries, the study conclude that the relationship between these variables is a significant relationship

5.3. Recommendations and Suggestions

The study made informed recommendations with reference to the research findings.

Recommendations were exclusively made to project stakeholders involved in PDCRE beneficiaries.

To the Government of Rwanda

 The Ministry of agriculture and Animal resources (MINAGRI) has to

increase agricultural support projects and agriculture programs in order to reduce

poverty especially in agricultural sector.

 MINAGRI has to support agriculture projects to make extension of

agricultural innovation to rural farmers in order to improve agricultural production

and quality which is always better in the competitions on international markets.

To Abakundakawa cooperative

 To maintain the new agricultural technologies which learned in

PDCRE trainings this will help them to harvest coffee quantity and coffee quality at

fair-Trade markets or at National coffee markets.

 To well feed cows given by PDCRE in order to increase cow products

of milk, manure, and money which can help them in poverty reduction?

To agricultural support projects (ASP) and PDCRE

PDCRE can support SACCOs as a means to facilitate financial services for small farmers.

PDCRE can expand the training capacities of central cooperatives agencies and expanding the capacity of processing coffee.

Do a study on the environmental effects of the coffee-washing stations; an updated study on other cash crop because the earlier one is 6 to 7 years old and a cost-benefit analysis of organic coffee production in Rwanda coffee cooperatives

To Interested Further research

A similar research study may be conducted impact on other export crops supported by

PDCRE/or other agricultural support project in poverty reduction in Rwanda

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