Rwanda Flora

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RWANDA FLORA PILOT Pioneering Initiatives Linking Outgrowers to Trade

Executive summary presentationWorld Bank, Washington DC

February 13-15, 2007

GLOBAL FORUMScience, Technology and

Innovation Capacity for Sustainable Growth and

Poverty Reduction

In Africa• 1 in 6 children dies before the age of 5

• Nearly half of the African population survives on 1USD per day

• This is unchanged from a decade ago

WHY?

Will good governance and democracy alone end poverty?

Is public investment used effectively?

What role is there for the private sector?

THE ROLE OF THE PRIVATE SECTOR

Rwanda Flora’s experience

Rwanda FloraVision: To be the incubator for

floriculture and horticulture development in Rwanda

RF is pioneering professional and organised horticultural production in Rwanda

RF is the country’s foremost producer and exporter of fresh cut flowers

Currently produce roses under greenhouse production on 8ha, with plans double rose production

We are committed to social and environmental responsibility.

PILOT Program Goal

To transform 600 rural farmers into profitable enterprises and increase

revenue at all levels of the production-marketing chain by

diversifying and expanding horticultural production and

marketing in Rwanda within 3 years,the process is in motion.

PILOT Program Goal

Rural farmer’s revenues will go

from 1USD to10USD per dayby the end of 2010.

PILOT Strategy Establish horticultural services through

developing a Trade Facilitation Centre and an outgrower scheme

Expand production and export portfolios through the outgrowers

Provide a guaranteed market for outgrowers Through participative research and development

with outgrowers, RF will contribute to building a horticultural data base

In addition to the technical, profit driven strategy aspects, RF will invest in changing the quality of lives of its outgrowers through engaging in social contracts

Social contractsExpected results by year 2011

Indicator Currently at

Rwanda Flora

After expansio

n(6-18ha)

PILOT Total

Increase in number of rural jobs created 200 >600 4,255

>5,055

Increase in number of rural women employed 160 >480 2,268

>2,908

Increase in number of rural children going to school

400 >1,200 2,400>4,00

0

Increase in number of rural people on a medical plan

1,200 >3,600 6,000>10,8

00

Increase in number of rural people with access to daycare

200 >600 600>1,40

0

Increase in number of rural people having had HIV/AIDS training

200 >600 600>1,40

0

STATEMENT(how do we do it?)

Rwanda Flora’s innovation and creativity lie in

the fact that “we have seen what many have not seen, thought

what no one has thought and are doing what no one else has

dared”

•

KEYS TO OUR KEYS TO OUR SUCCESSSUCCESSUnderstanding global markets Understanding global markets

and access to market and access to market intelligenceintelligence

Our most important investment Our most important investment has been peoplehas been people

We have learned to think like We have learned to think like inventors and innovatorsinventors and innovators

This thinking process has This thinking process has provided us with clues to fund provided us with clues to fund sourcing, networking and how sourcing, networking and how to be successful doing to be successful doing businessbusiness in a very challenging, in a very challenging, post conflict environmentpost conflict environment

OUR FUTUREThe Role of Science and Technology Rwanda has very limited land resources Through science and technology,

PILOT is initiating and introducing high value/low volume export crops that will have immediate effect on the income levels, health and education of our rural clients

PILOT is pioneering to build successful rural micro entrepreneurs around contributing to the achievement of the MDG’s in Rwanda

OUR FUTURE CONTINUES Included in our PILOT program on reaching the

poor is the micro poverty outreach rotating fund Through PILOT’s rotating fund, RF will

showcase that Science, Appropriate Technology and Providing Financial Services targeting the poor is compatible with financial sustainability

This fund will enable rural micro entrepreneurs to access appropriate technologies and thru the program to scale up to reach more clients with lower costs thru economies of scales

This will be achieved by lowering lending costs in order to remain profitable

Training, capacity building and incentives will be promoted thru our Trade Facilitation Centre

Science and technology Science and technology development, capacity development, capacity

building building LILI LOOPLILI LOOP

No demand for skills

development programs

Limited private sector

demand

Who plunges first to escape this vicious cycle?

Limited private sector

demand

No demand for technology

Limited

Interest,

Limited

Investment

SOUTH-SOUTH SOUTH-SOUTH COOPERATIONCOOPERATION

How can Rwanda catch up How can Rwanda catch up with with

regional sector leaders?regional sector leaders?Instant fixInstant fixRegional Technical AssistanceRegional Technical AssistanceGovernment cost sharing with sector pioneers, i.e. Government cost sharing with sector pioneers, i.e. cargocargoGrants for first time ventures; i.e. for technical Grants for first time ventures; i.e. for technical assistance, training, installing and using new assistance, training, installing and using new technologies, standards certificationtechnologies, standards certificationGovernment to provide long term finance and Government to provide long term finance and incentives for investors in agricultural activities, incentives for investors in agricultural activities, especially those linked to export.especially those linked to export.

Mid-long termMid-long termGovernments must provide specific skills linked to Governments must provide specific skills linked to market demandmarket demandResearch institutes need to develop data bases and Research institutes need to develop data bases and appropriate technology for applied scienceappropriate technology for applied sciencePromote and support private companies to acquire Promote and support private companies to acquire international standards certificationinternational standards certification

Launching PILOTLaunching PILOTWhat do we need?What do we need?

Capacity building towards bringing Capacity building towards bringing science and technology to the poor has a science and technology to the poor has a cost and should be taken seriously by the cost and should be taken seriously by the government and the donor community government and the donor community Scientific data bases and demonstration Scientific data bases and demonstration sites are needed to extend new sites are needed to extend new technologies to the rural poortechnologies to the rural poorThis is normally a government This is normally a government responsibility but for accelerated responsibility but for accelerated implementation of programs targeting implementation of programs targeting business and poverty issues, financial business and poverty issues, financial assistance in the form of grants for the assistance in the form of grants for the private sector will contribute to the pilot private sector will contribute to the pilot activitiesactivities

Launching PILOTLaunching PILOTWhat we need continuesWhat we need continues

Brain drain issues not a concern in Brain drain issues not a concern in the rural areas that represent the the rural areas that represent the majority of Rwanda’s population and majority of Rwanda’s population and Africa for that matter; therefore, Africa for that matter; therefore, capacity building of rural youth with capacity building of rural youth with specific skills utilising appropriate specific skills utilising appropriate technologies is not a risktechnologies is not a riskOn the contrary, it will contribute to On the contrary, it will contribute to creating wealth and diversifying rural creating wealth and diversifying rural economieseconomies

MurakoMurako

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