VZCZCXRO4690
RR RUEHLMC
DE RUEHLGB #1163/01 3370959
ZNR UUUUU ZZH
R 030959Z DEC 06
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC 3525
INFO RUEHJB/AMEMBASSY BUJUMBURA 1591
RUEHDR/AMEMBASSY DAR ES SALAAM 0789
RUEHKM/AMEMBASSY KAMPALA 1495
RUEHKI/AMEMBASSY KINSHASA 0152
RUEHNR/AMEMBASSY NAIROBI 0694
RUEHFR/AMEMBASSY PARIS 0181
RUEHLMC/MILLENNIUM CHALLENGE CORP 0024

UNCLAS SECTION 01 OF 05 KIGALI 001163 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL EAID RW
SUBJECT: SUCCESSFUL DEVELOPMENT PARTNERS MEETING IN RWANDA 
 
 
¶1.  (SBU)  Summary.  The GOR convened its sixth annual 
Development Partners Meeting in Kigali on November 22 to 24. 
Sessions included presentations and discussions on such 
topics as economic growth, private sector development, 
agriculture, decentralization, aid policy, and governance. 
Donor governments made formal statements on the GOR 
presentations, the IMF offered its own critique of the state 
of the economy, and a final communique (attached) summarized 
the participants' conclusions.   During the discussion on 
governance, the government detailed its plans to further 
improve the judiciary, citizen participation in decentralized 
sectors and districts, and human rights.  Donors pledged 
additional funds for the GOR's education sector development. 
President Kagame made interesting remarks on the need for the 
process to be "owned" by the Rwandan people and government, 
while working closely with donors.  End summary. 
 
¶2.  (SBU)  The three day event consisted of extensive 
presentation by ministers and senior civil servants on the 
following topics: the 2006 performance of the Rwandan 
economy, planning for economic growth and poverty reduction, 
private sector development and long term investments, 
agriculture and economic growth, decentralization, governance 
and the rule of law, and implementation of aid policy.  Each 
session also included open debate on the topics following the 
power-point presentations.  Minister of Finance James Musoni 
opened the sessions, and chaired several following 
discussions.  On governance issues, Local Government Minister 
Protais Musoni offered opening thoughts, followed by Justice 
Minister Karugarama on the legal sector, Gacaca Executive 
Secretary Mukantaganzwa on gacaca court proceedings, and 
 
SIPDIS 
Special Advisor Gatare on NEPAD findings in the African Peer 
Review Process. 
 
¶3.  (SBU)  The sessions opened with remarks from President 
Kagame, who asked that donors place special emphasis on 
"policy ownership" by the recipient country, rather than 
policy prescriptions from foreign capitals. He recalled 
Rwanda's history, particularly the tragic events of the 
genocide, and asked donors to accept that Rwanda had made 
considerable progress since 1994.  Speaking tartly at times, 
and noting donor worries over political space, governance, 
and pluralism, he appealed for donors to give Rwanda "some 
breathing space, time to build our future, to develop and 
enjoy the benefits of development like our development 
partners." 
 
¶4.  (SBU) In response, donor governments offered formal 
comments, summarized in the communique. For example, donors 
expressed satisfaction with Rwanda's strong growth rate, and 
its successful efforts at macro-economic stability, 
administrative reform, and financial management. Partners 
expressed concern over the availability of sufficient energy 
supplies to sustain industry and agriculture, the risk that 
excessive population growth posed to future growth, and the 
need to scale up development aid while maintaining absorption 
capacity. Donors recommitted themselves to the Paris 
Declaration, regarding alignment of donor programs with host 
government priorities to promote in-country development and 
ownership.  Toward the end of the sessions, the UK 
representative announced that donors, praising the GOR's new 
education sector development plan, had pledged 27 million 
dollars for the current year and 44 million for the next year 
under the G-8's Fast Track Education Initiative. 
. 
¶5.  (SBU) In separate statements, the UNDP and IMF Resident 
Representatives called for positive enabling environments for 
the private sector, careful management of debt sustainability 
in financing development, and productive use of aid while 
preserving macroeconomic stability. Each urged continued 
progress on decentralization, education and health, and good 
governance. 
 
¶6.  (SBU)  Comment.  Although somewhat overshadowed by the 
Rwandan rupture of relations with France (reftel)), the 
Development Partner's meeting took place in an atmosphere of 
frank discussion and extensive review of Rwanda's recent 
performance and its prospects for the future. Donors are 
genuinely impressed with Rwanda's stewardship of development 
resources, while mindful of the significant challenges Rwanda 
faces in its effort to transform a poor rural society into a 
nation and economy better equipped for the globalized 
marketplace.  End comment. 
 
¶7.  (U) Text of Communique: 
 
KIGALI 00001163  002 OF 005 
 
 
 
 
Sixth Annual Government of Rwanda and Development Partners 
Meeting 
FINAL COMMUNIQUE 
 
¶1. At the invitation of the Government of the Republic of 
Rwanda, the sixth Annual Meeting 
of the Government and its Development Partners was held from 
22nd to 23rd of 
November, 2006 in Kigali. His Excellency Paul KAGAME, The 
President of the Republic 
of Rwanda, opened the conference. Mr James MUSONI, Minister 
of Finance and 
Economic Planning, presided over the proceedings, assisted by 
Development Partners 
as co-chairs. 
 
¶2. Representatives of the following governments participated 
in the meeting: Austria, 
Belgium, Burundi, Canada, China, Egypt, France, Germany, Holy 
See, Italy, Japan, 
Kenya, Kuwait (KFAED), Luxembourg, Netherlands, Norway, 
Russian Federation, Saudi 
Arabia, South Africa, Sweden, Switzerland, Uganda, United 
Kingdom, United States. 
The following organisations also participated in the Meeting: 
African Capacity Building 
Fund, African Development Bank, European Commission, European 
Investment Bank, 
FAO, Global Fund, IFAD, IMF, International Trade Centre, 
OFID, UNAIDS, UNDP, 
UNECA, UNFPA, UNHCR, UNICEF, UNIFEM, WFP, WHO, World Bank. 
Representatives from International and Local NGOs, the 
Private Sector and Civil Society 
were also in attendance. 
 
¶3. The theme of this year,s conference was "Long-Term 
Investments for Economic Growth 
and Poverty Reduction". The agenda of the Meeting covered an 
assessment of 
Rwanda,s economic performance in 2006; planning for economic 
growth and poverty 
reduction; progress in the energy sector; science, technology 
and research; private 
sector development; planning for financial sector 
development, and agriculture; progress 
in decentralisation reforms; issues of governance, rule of 
law and reconciliation; and 
challenges and opportunities in terms of the volume and 
effectiveness of foreign aid to 
Rwanda. 
 
¶4. In his keynote speech, His Excellency the President of the 
Republic of Rwanda drew 
particular attention to the need for increased space for 
policy ownership on the part of 
the Rwandan people in the definition and implementation of 
Rwanda,s development 
vision. He spoke of an emerging global consensus on national 
ownership of 
development activities, challenging participants to turn this 
into and achievable plan, and 
calling upon development partners to further strengthen 
genuine relationships based on 
open and honest dialogue with the Government of Rwanda. His 
Excellency the 
President of the Republic expressed his appreciation for the 
support provided by 
Development Partners in relation to his Government,s 
development programme. 
 
¶5. The UN Resident Coordinator delivered a statement on 
behalf of Development Partners, 
which commended the progress that Rwanda has made in 
delivering on its development 
agenda, reaffirming Partners, continued support to Rwanda, 
while recognising that many 
challenges remained. 
 
 
¶6. Over the course of the Meeting, participants noted 
significant achievements since 
last year in the areas of Aid Policy; reforms in Public 
Financial Management; 
 
KIGALI 00001163  003 OF 005 
 
 
administrative reforms; export strategy; planning for 
financial sector development; and 
the maintenance of macro-economic stability. Challenges 
identified included poverty 
alleviation, gender, good governance and service delivery. 
 
¶7. Participants noted with satisfaction the strong growth of 
the Rwandan economy 
since last year,s Meeting, particularly the growth in 
agriculture and service sectors, and 
the increase and diversification of exports. The need to make 
business in Rwanda more 
competitive was highlighted, with interventions here 
including investments in 
infrastructure and human capital, the development of an 
appropriate legal framework, 
and a further deepening of the financial sector. 
 
¶8. Participants agreed that high rates of population growth 
are compromising 
economic development efforts. The need for a better 
understanding of the underlying 
drivers of population growth was discussed, and participants 
agreed that education and 
family planning would play a key role in managing future 
population growth. They 
recognised the need for well thought through solutions to 
address the problem in the 
short- to medium-term. 
 
¶9. The Government presented its progress in the elaboration 
of the Economic 
Development and Poverty Reduction Strategy (EDPRS), and its 
single planning 
tool, the Long Term Investment Framework. Participants 
commended the 
accomplishments to date in the development of the EDPRS, and 
acknowledged the high 
degree of national ownership and participation throughout its 
elaboration. It was agreed 
that the EDPRS will guide development interventions in the 
medium term. Emerging 
priorities in the EDPRS were discussed, focussing on 
productivity enhancing 
interventions, and the need for continued progress in the 
social sectors. Participants 
welcomed and supported strongly the adoption of these 
co-priorities as Rwanda seeks 
to attain its Vision 2020 objectives. Participants also 
welcomed the Government,s 
reiteration of its commitment to macroeconomic stability and 
fiscal discipline. 
 
¶10. Whilst acknowledging the progress made over the last 
year, participants noted 
that the availability and affordability of energy remains a 
significant barrier to the 
development of industry, agricultural transformation, and the 
provision of high 
quality services to the Rwandan citizen. Participants noted 
with satisfaction the 
advances made in planning for the energy sector, which 
highlighting significant resource 
gaps both now and in the future. Participants highlighted the 
need to develop 
hydroelectric power in the national and regional context, and 
to diversify energy 
generation in a cost effective manner. Ongoing work on the 
Kivu methane facility should 
go some way to achieving this. 
 
¶11. Participants recognised the strategic role being played 
by the private sector in 
employment creation and enhancing growth and poverty 
reduction. They 
recognised the need to remove barriers to doing business, to 
improve the business 
environment, and the need to improve Rwanda,s image abroad. 
They went on to note 
with satisfaction the work being undertaken in partnership by 
the Government of 
Rwanda and private sector organisations in creating a 
favourable environment for the 
development of existing and new businesses. The Government 
presented its Financial 
 
KIGALI 00001163  004 OF 005 
 
 
Sector Development Plan, which envisages a diversification of 
financial instruments, and 
Development Partners committed to support the implementation 
of this Plan. 
 
 
¶12. Participants recognized the importance of capacity 
building in science, technology 
and research, and in all sectors of the economy, for long 
term sustained economic 
growth and poverty reduction. 
 
¶13. Participants noted the importance of agriculture to the 
Rwandan economy. 
Successful transformation of the agricultural sector is 
crucial to pro-poor growth in 
Rwanda, to increasing households incomes, to reducing 
vulnerability to climatic shocks 
and changes in the global market for agricultural 
commodities. Progress in planning and 
delivery in the agricultural sector was noted, and the need 
for further support to ensure 
the successful implementation of the Strategic Plan for 
Agricultural Transformation was 
highlighted. However, there was consensus that continued 
growth in industry and 
services remains an important priority. 
 
¶14. Participants commended ongoing developments in 
decentralisation reforms. 
Fiscal decentralisation provides for a strong framework 
within which districts can deliver 
high quality public services to the Rwandan citizen. 
Decentralisation strengthens 
accountability and transparency, and brings decision-making 
and economic 
empowerment closer to the Rwandan people. Development 
Partners committed their 
continued support to strengthening the implementation of 
Rwanda,s programme for 
decentralisation, in the context of Rwanda,s 
Decentralisation Strategic Framework. 
 
¶15. Development Partners commended the good progress made in 
governance and 
entrenching the rule of law, voice and accountability, and 
the eradication of 
corruption. Participants reaffirmed their belief that 
continued progress in these areas is 
a prerequisite to Rwanda,s economic development. Development 
Partners recognised 
the existence of clear programmes aimed at continued 
improvement of this area and, as 
suggested by His Excellency the President of the Republic of 
Rwanda, agreed that good 
governance should be discussed openly with Partners. 
Participants agreed to the 
development of a joint governance framework that will guide 
mid-term good governance 
programmes in Rwanda. 
 
¶16. The Government presented the outcomes of its recent 
assessment under the 
NEPAD African Peer Review Mechanism (APRM). Development 
Partners 
commended the Government of Rwanda for being one of only 
three countries to have 
completed the Peer Review, and reiterated their strong 
support to NEPAD, and the 
APRM in particular. Participants noted that the report,s 
recommendations would be 
useful to Rwanda in continuing its good governance agenda. 
Participants acknowledged 
the Government,s decision to mainstream the APRM Plan of 
Action into the forthcoming 
EDPRS, noting that the two are consistent with one another. 
Partners committed to 
support its implementation through existing channels of 
cooperation. 
 
¶17. Participants noted the progress made in the sector of 
rule of law and 
reconciliation, and committed their continued support to 
efforts in national unity 
and reconciliation. Rwandan-owned initiatives in this area, 
 
KIGALI 00001163  005 OF 005 
 
 
particularly the development 
of the Gacaca process as a means of accelerating the 
resolution of cases that cannot be 
met in the conventional justice system, were praised for 
their innovative work in 
responding to Rwanda,s specific needs in this area. 
 
¶18. Following the endorsement of its Aid Policy by the 
Cabinet this year, the 
Government presented its plans for the implementation of this 
Aid Policy, whilst 
fulfilling the commitments it entered into with its donors 
under the Paris Declaration on 
Aid Effectiveness. While expressing their full support, 
donors recognised that 
improvements in governance, procurement, monitoring and 
evaluation are essential for 
scaling up and its ultimate success. Participants commended 
the Government for its 
strong leadership and the participatory process adopted in 
the elaboration of this Policy. 
Ongoing reforms in public financial management were noted 
with satisfaction, and it was 
agreed that further improvements were essential. 
 
¶19. The donor community pledged to support the Government,s 
plans for the 
implementation of aid effectiveness initiatives. In a joint 
statement presented by 
Rwanda,s donors, praise was accorded to the participatory 
process in which the Aid 
Policy was elaborated, and the aims underlying it. Donors 
agreed to support the 
Government,s plans in this area by providing assistance in a 
manner consistent with the 
Government,s priorities. 
 
¶20. Participants agreed that, in the medium-term, significant 
scaling up in 
development aid is necessary if Rwanda is to meet the targets 
set by the Millennium 
Declaration, and its long-term objectives set out in its 
Vision 2020. Participants noted the 
efforts being made to cost the forthcoming EDPRS, and it is 
anticipated that this costing 
exercise will provide a clearer indication of financing gaps 
in the medium term. 
 
¶21. Participants agreed that for most of their proposals to 
be implemented effectively, the 
issue of capacities needs to be attended to. 
 
¶22. Participants discussed the importance of ensuring that 
macroeconomic stability is 
maintained in the face of future increases in aid flows. At 
the same time, participants 
agreed on the need to ensure that Rwanda,s increased 
investments do not compromise 
debt sustainability. 
 
¶23. Participants concluded by acknowledging the strong 
convergence of views between the 
Government of Rwanda and its Development Partners during the 
open and frank 
discussions. The importance of continued and strengthened 
partnership was highlighted, 
with the Government reiterating its gratitude to its Partners 
for their continued support to 
the development of Rwanda. Development Partners expressed 
satisfaction with the 
quality of partnership that exists between them and the 
Government of Rwanda. They 
conveyed their gratitude to the Government for organising 
this important forum for 
dialogue, and for its warm hospitality. 
 
Adopted on 23rd November 2006 
InterContinental Hotel, KIGALI 
 
End text. 
 
 
 
ARIETTI