VZCZCXYZ0000
PP RUEHWEB

DE RUEHLGB #0781 3281124
ZNR UUUUU ZZH
P 241124Z NOV 09
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC PRIORITY 6441
INFO RUEHXR/RWANDA COLLECTIVE PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUZEFAA/HQ USAFRICOM STUTTGART GE PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0312

UNCLAS KIGALI 000781 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EAID EAGR SENV RW
SUBJECT: RWANDAN AGRICULTURE INVESTMENT PLAN BASED ON CAADP 
PILLARS 
 
REF: KIGALI 747 
 
¶1. (U) Summary: Rwanda's second overall Strategic Plan for 
the Transformation of Agriculture (PSTA II) is the basis for 
the Government of Rwanda's (GOR) draft Agriculture Investment 
Plan (see reftel). This draft investment plan addresses each 
of the four Comprehensive African Agricultural Development 
Program (CAADP) pillars. Without adequate investment in 
agriculture, the GOR will struggle to maintain or exceed the 
targeted agriculture growth rate of six percent per year. End 
Summary. 
 
¶2. (U) PSTA II (like its predecessor, which ran from 
2004-2008) is a component of the GOR's EDPRS (Economic 
Development and Poverty Reduction Strategy). The PSTA II 
outlines the GOR's national agriculture strategies, details 
programs to achieve these strategies, and estimates 
implementation costs. The cost of the PSTA II is the basis 
for the GOR's Agriculture Investment Plan. This plan will 
guide the proposed December 7-8 high-level meeting hosted by 
the GOR. 
 
¶3. (U) The GOR's CAADP Compact, signed in March 2007, aligned 
the PSTA II strategy with CAADP commitments: six percent 
annual growth in agriculture and ten percent of national 
spending allocated to the agriculture sector. The PSTA II's 
four programs are loosely aligned with the four CAADP 
pillars. Each program in the PSTA II addresses one or more of 
the CAADP pillars. 
 
¶4. (U) The draft GOR Agriculture Investment Plan estimates 
that PSTA II implementation will cost $848 million. The draft 
Investment Plan projects GOR contribution will be $117 
million, development partners' contribution will be $263 
million, and private sector contribution will be $25 million, 
leaving an investment gap of $441 million. An On The Frontier 
(OTF) report commissioned by USAID to evaluate PSTA II-CAADP 
alignment concluded that although Rwanda's agricultural 
growth exceeded CAADP's goal of six percent agricultural 
growth, the GOR has not allocated the resources required 
under the Maputo Declaration, thus falling short of a second 
high-level CAADP goal to invest ten percent of the national 
budget in agriculture. The OTF report concludes that without 
adequate investment in agriculture, the GOR will struggle to 
maintain CAADP's targeted growth rate of six percent. 
 
¶5. (SBU) Comment: In the draft Agriculture Investment Plan, 
the GOR asserts that even though CAADP's agricultural growth 
goal is six percent, Rwanda will need to exceed that and 
sustain a growth rate of eight percent in order to achieve 
Millennium Development Goal 1--to eradicate extreme poverty 
and hunger. Although CAADP's second high level goal targets 
allocating ten percent of national expenditure to 
agriculture, post does not expect the GOR to achieve this 
based on current GOR Ministry of Finance projections. USAID 
and other development partners will continue to encourage the 
GOR to allocate more of its scarce resources to agriculture. 
End Comment. 
 
SYMINGTON