Discussion Papers

× This paper explores the broad spectrum of commercial engagement by Rwandan farmers by grouping farmers according to characteristics of the head of household, the degree of commercialization of their farms, size of livestock holdings and other factors.

We use statistical methodologies, including factor and cluster analysis, combined with existing knowledge of the agricultural sector to define five types of Rwandan farmers, separated into two broad groups. The first group (Group A) includes three types broadly classified as less wealthy, less commercialized, with a net negative gross margin. Within this group the three types of farmers include: Type 1—Less commercialized older male headed households with larger families, Type 2—Better educated, youth headed households, who are more market oriented but have smaller land holdings, Type 3—Older female headed households who produce relatively lower agricultural production value relative to their assets owned.

× In this paper, we explore the current levels and participation of crop commercialization by Rwandan smallholder farmers. Our basic unit of analysis is total crop sales divided by the total value of crop production, either at the household or specific crop level. Overall, our findings suggest that approximately 80 percent of farmers participate in crop market sales and sell an average of 33 percent of their total production. However, there is a wide variety of percentage sales by crop and, in general, higher-valued crops are sold by more commercialized farm households. We also find that value of crop production per hectare rises with greater commercialization, suggesting that developing greater market commercialization, particularly with more valuable crops, may increase household incomes and aid in the economic transformation.

× This paper explores crop commercialization among smallholder agricultural households in Rwanda from a cost and revenue perspective to determine profitability at the farm level. We use standard revenue and cost equations to assess the commercial viability of the smallholders. In general, we find that a household’s total crop production creates positive returns even if implicit costs, such as own family labor and fertilizer subsidies, are included. Specifically, over 80 percent of our sample households generated positive economic returns from farming— referred to as demonstrating a positive gross economic margin (GEM). However, if only crop market sales and market input costs are used in the calculations, only 40 percent of agricultural households generated positive returns—referred to as demonstrating a positive gross marketing margin (GMM). Most of the explanation for this difference is that the typical farm household sells only about one-third of its crop production by value. This outcome suggests that many agricultural households continue to focus on cultivating food crops for their own consumption and do not specialize in commercial production. This is to be expected in an economic context where input, credit, and commodity markets are still developing, production decisions are still shaped by high levels of weather and market risk, and production risk management options are limited, among many other factors. The results of this research provide a better understanding of how Rwandan smallholders might move towards higher value production, with the ultimate goal being to increase household revenues and welfare and accelerate the country’s economic transformation.

× This paper uses machine learning, simulation, and data mining methods to develop Systematic Risk Profiles of three developing economies: Kenya, Rwanda, and Malawi. We focus on three exogenous shocks with implications for economic performance: world market prices, capital flows, and climate-driven sectoral productivity. In these and other developing countries, recent decades have been characterized by increased risks associated with all these factors, and there is a demand for instruments that can help to disentangle them. For each country, we utilize historical data to develop multi-variate distributions of shocks. We then sample from these distributions to obtain a series of shock vectors, which we label economic uncertainty scenarios. These scenarios are then entered into economywide computable general equilibrium (CGE) simulation models for the three countries, which allow us to quantify the impact of increased uncertainty on major economic indicators. Finally, we utilize importance metrics from the random forest machine learning algorithm and relative importance metrics from multiple linear regression models to quantify the importance of country-specific risk factors for country performance. We find that Malawi and Rwanda are more vulnerable to sectoral productivity shocks, and Kenya is more exposed to external risks. These findings suggest that a country’s level of development and integration into the global economy are key driving forces defining their risk profiles. The methodology of Systematic Risk Profiling can be applied to many other countries, delineating country-specific risks and vulnerabilities.

× Rwanda is a recognized leader in the region and in the world in terms of women’s empowerment. However, no country has yet achieved full gender equality, resulting in untapped potential. The findings from the Women’s Empowerment in Agriculture Index (WEAI) baseline survey conducted in 2019 for the Ministry of Agriculture and Animal Resources (MINAGRI), indicated that women and men in Rwanda both have relatively high levels of empowerment across different agricultural do mains, and most women are as empowered as men in their households. This working paper dis cusses the findings further and in the context of MINAGRI’s Gender and Youth Mainstreaming Strategy that was also launched in 2019, as well as the Fourth Strategic Plan for Agricultural Transformation (PSTA 4). Key findings include the following.
• Compared to other countries in the region, women in Rwanda have relatively greater access to financial services and a relatively lower time burden in agriculture.
• However, when compared to men in Rwanda, inequalities persist. Women are significantly less likely than men to access financial services, participate in the marketing of agricultural commodities, access extension services, and spend their time on productive (rather than reproductive) work.
By adapting and promoting innovative and gender-inclusive financial products, shifting gendered cultural norms, providing extension to both the household head and the spouse, and investing in time-saving technologies and innovations, there are opportunities to reduce the gender gap in agriculture and increase agricultural productivity. Realization of these outcomes will depend partly on the implementation of the Gender and Youth Mainstreaming Strategy and PSTA 4, and partly on coordination with other gender-transformative programs in Rwanda.

× This report provides a comprehensive statistical overview of agricultural household data collected by IFPRI from a smallholder commercialization survey in late 2022. Sampled to be representative to the provincial level, ten households were surveyed in 202 villages for a total of 2,020 households interviewed. The survey covers a wide range of topics including household demographics, agricultural farm holdings, input use, crop choice, levels of commercialization and other non-farm sources of income. The statistical tables are generally presented by principal categorical variables of interest which include provinces, gender and age of household head (youth/mature), as well as size of land holdings. These designations are meant to provide general insights into the current state of agricultural households in Rwanda. Building on this report, future research, on more specific topics of interest, will be performed to build a more comprehensive understanding of agricultural household economic behavior for broader understanding as well as potential policy engagement.

× While the key role that policy plays in sustainable development has long been recognized, rigorously documenting the influence of research on policy outcomes faces conceptual, empirical and even political challenges. Addressing these challenges is increasingly urgent since improving policies—broadly defined—is at the heart of the structural transformation agenda. This paper describes the use of a new evaluation method—outcomes trajectory evaluation (OTE), based on both evaluation and policy process theory—to explore the influence of HarvestPlus, a large and complex research for development program focused on improving nutrition, on a specific policy outcome, namely the establishment of crop biofortification breeding programs in national agricultural research institutes in Bangladesh, India and Rwanda. The findings support claims of significant HarvestPlus contributions to the establishment of the programs while also raising issues that need to be monitored moving forward to ensure sustainability. The paper also discusses the pros and cons of the OTE approach in terms of both methodological rigor and program learning. In particular, the fact that HarvestPlus is a long-running program allows us to reflect on how a “backward looking” approach such as OTE builds on and complements the more “forward looking,” theory of change-based approaches that informed HarvestPlus programming and evaluation during its earlier, highly-successful phases. Such a long-run perspective is rare in development evaluation and it offers important lessons for how to think about and plan for evaluation over the course of a complex agriculture research for development program.

× As Rwanda is expected to return to its rapid growth trajectory following the COVID-19 pandemic, agriculture will continue to play a central role in the structural transformation of the entire economy. To this end, the Government of Rwanda continues to invest in the agricultural sector by building on Strategic Plans for the Transformation of Agriculture (PSTAs) that began in the early 2000s. The challenging question is how to prioritize public expenditures across a broad portfolio of policies and programs. Ambitious plans, whether in the short or long term, require difficult decisions. The prioritization of public investment becomes even more complex as Rwanda’s structural transformation advances and as new investments—beyond the farm—become critically important for the agricultural sector. The structural transformation process itself means that as agriculture becomes more integrated with the rest of the economy, public resource allocations need to address a wider range of issues across the entire food system; these include nutrition-sensitive food production systems, inclusive value chain development, nonfarm rural enterprise development, and climate-resilient sustainable intensification of both crops and livestock.
This study provides evidence that is designed to assist the Government of Rwanda in its selection of agricultural policy, investment, and expenditure portfolios that reflect the country’s broad focus on its food system and structural transformation. This process of prioritization will need to incorporate multiple public investments targeting multiple development outcomes and will need to be grounded in the costeffective use of public resources in a largely market-led transformation process. This data-driven and evidence-based approach must critically underpin an informed investment prioritization process that helps achieve ambitious targets in an environment constrained by limited public resources. The study uses the Rural Investment and Policy Analysis (RIAPA) economywide model developed by the International Food Policy Research Institute (IFPRI), with contributions from colleagues at the Ministry of Agriculture and Animal Resources (MINAGRI), the Ministry of Finance and Economic Planning (MINECOFIN) and the National Institute of Statistics of Rwanda (NISR). The study draws on data from multiple sources as well as expert insights to inform the application of RIAPA’s Agricultural Investment for Data Analyzer (AIDA) module as a tool to measure the impacts of alternative public expenditure options on multiple development outcomes. Using this integrated modeling framework, the study links agricultural and rural development spending to four specific outcomes: economic growth, job creation, poverty reduction, and diet quality improvement; at the same time, it considers the synergies and tradeoffs associated with the different investment options in the transformation process.
The paper first assesses the contribution of public expenditures to agricultural and rural development under the fourth Strategic Plan for Agriculture Transformation (PSTA 4) that extends between 2018 and 2024. These findings are important, given the fact that since the beginning of PSTA 4, the budget allocated to MINAGRI (measured in constant prices) has stagnated. Our results suggest that increased spending on agriculture is well justified and that such spending is essential if the Government of Rwanda is to achieve its long-term development goals.

× This paper provides a diagnostic of Rwanda’s food systems and the policy landscape that shapes it. It aims to inform national and local conversations on Rwanda’s food systems transformation—an idea that has attracted considerable attention in national consultations conducted in the run-up to the United Nations Food Systems Summit in September 2021, at the summit itself, and in the post-summit actions that Rwanda is now pursuing.
A food system comprises the full range of actors and activities originating from agriculture, livestock, forestry, or fisheries, as well as the broader economic, societal, and natural environments in which they operate. An inclusive and sustainable food systems transformation is a process of growth and development that is profitable for the full range of individual actors engaged in the system, beneficial for society including marginalized and vulnerable groups, and advantageous for the natural environment.
Rwanda’s journey towards a food systems transformation is well captured in Vision 2050, the National Strategy for Transformation (NST 1), and strategic plans for sectors such as agriculture, health, nutrition, commerce, and the environment. Their priorities are echoed in ongoing programs and investments of the government, its development partners, the private sector, and civil society.
Nonetheless, there are still challenges facing Rwanda’s efforts to sustain and accelerate progress along this journey. Efforts to overcome these challenges call for a deeper and more significant shift in thinking—informed by the food systems perspective—that is highlighted by stronger multi-sectoral approaches to problem-solving.
Overall findings suggest an opportunity for a tangible shift in how public policy in Rwanda approaches its food systems and how the systems contribute to the broader national transformation process. This means addressing how balances are struck—and tradeoffs are managed—between and among agriculture, nutrition, health, and the environment in the face of a climate crisis. It also means giving greater attention to the demand-side drivers in Rwanda’s food system, recognizing that singularly focused supply-side strategies rarely succeed in isolation. Finally, it means deepening the integration of policies and policy actors in the design and implementation phases of interventions that shape the food system.
We offer several recommendations to translate abstract ideas into a coherent and focused set of actions in the policy space.
1. Strengthen existing entities and mechanisms rather than create new ones.
2. Develop a national food systems transformation strategy that is integrative, multi-sectoral, and action-oriented.
3. Innovate on existing programs.
4. Allow for learning through both success and failure.
5. Invest in rigorous impact evaluation.
These actions aim to strengthen the policy environment that enables a truly broad-based food systems transformation. This enabling environment is itself an outcome of broad-based national conversations, integration across sectors, domains, and levels; and the encouragement of policy and program innovation.

× This paper presents two interrelated innovations to help identify diet-related nutrition policies. The first involves the development of a food budget allocation efficiency measure to quantify suboptimal food preferences, which is one key explanation of poor diets in addition to unaffordability. The second relates to the application of stochastic dominance to a portfolio of dietrelated nutrition policies, defined by various levels of allocation efficiency and affordability. As no full specification is needed, the latter technique is particularly useful when lacking normative guidelines regarding the relative importance of nutrient deficiencies within one-dimensional diet quality measures as well as the exact content of culture-sensitive diets. The analytical innovations are illustrated using a 2013/14 household consumption survey of Rwanda, a country characterized by both high calorie and micronutrient deficiencies. The origins of these poor nutritional outcomes can be traced back to various combinations and levels of affordability and allocation efficiency constraints. By only excluding the most inequality averse diet quality pecification, which may help to account for measurement error, a robust set of policy recommendations can be formulated for two thirds of all observations, most of which should focus on awareness raising activities.

× Agricultural input subsidies are a prominent feature in the 2018-2024 Strategic Plan for Agricultural Transformation (PSTA 4), which is designed and implemented by the Ministry of Agriculture and Animal Resources (MINAGRI). By reducing the cost of improved seed and inorganic fertilizers, subsidies are designed to accelerate the use of these productivity-enhancing inputs, thereby increasing agricultural yields and output, increasing rural incomes while reducing food prices, and improving food security in line with PSTA 4’s targets. However, questions arise about whether the current input subsidy rates and levels are sufficient to increase crop production and meet the PSTA 4 targets, and whether the subsidy system can be expanded in the current economic climate and fiscal situation caused by the COVID-19 pandemic and spike in global fertilizer prices. This paper examines the impact of an increase in the price of fertilizer in Rwanda using seasonal production data from National Institute of Statistics of Rwanda (NISR) in a microsimulation model aimed at three priority crops—maize, rice, and Irish potato—and the three main fertilizers in use—diammonium phosphate (DAP), urea, and NPK.

× This paper assesses the structure of Rwanda’s current and evolving agrifood system and its contribu-tion to national development. The paper reiterates the point that Rwanda’s agrifood system stretches well beyond primary agriculture and creates jobs and income opportunities throughout the economy. While off-farm components of Rwanda’s agrifood system have generally grown more rapidly than pri-mary agriculture in recent years, growth varies across value chains of the agrifood system in the stud-ied period. The growth diagnostic in this paper reveals that it is domestic markets that have driven the recent growth in Rwanda’s AFS other than exports.
The paper’s forward-looking analysis assesses potentially differential impacts of value-chain develop-ment efforts on broad development outcomes. The analysis measures the synergies and trade-offs of value-chain development in the context of an inclusive agricultural transformation. Such analysis is conducted using the Rwanda Computable General Equilibrium (CGE) model – an adaption of IFPRI’s Rural Investment and Policy Analysis (RIAPA) model to the Rwandan context.
The modeling results indicate that value chains differ considerably in their effectiveness in achieving development goals and there are significant trade-offs among different development goals from pro-moting a specific value chain. The value chains that make a larger contribution to growth or job crea-tion are not necessarily effective in reducing poverty or improving dietary quality – for example, value chains for coffee and tea – while value chains that play an important role in improving dietary quality may contribute less to job creation – such as vegetables or fruits. While there is no single value chain that can achieve all development goals effectively, it is possible to select a diversified set of value chains that complement each other in achieving different development goals. This latter strategy is a more realistic approach to growth and development.

× Engaging burgeoning youth populations in developing country agriculture is seen as an important strategy toward effective, efficient, and sustainable food system transformation. Yet the policy, institutional, technological, and capability barriers and ways to overcome them for successful participation of youth in agriculture are not fully understood. We use a conceptual framework that identifies key pathways to prosperity for youth and classifies contextual and driving factors that contribute to the success of youth engagement in agriculture. The framework comprises four broad categories of strategic interventions: policy and socioeconomic environment; institutional; technological/business infrastructure; and individual skills and capacities. In the context of this framework, we then present insights from cases of youth participation in agriculture in five countries: Guatemala, Niger, Nigeria, Rwanda, and Uganda. The countries and cases were purposively selected as part of ongoing research on youth engagement in agriculture.
Policies and strategies play an important role in creating an enabling environment for youth engagement in agriculture, including by fostering transparency and accountability in the policy system and promoting youth engagement in the private sector through agricultural extension and other services. Institutions and intermediaries provide financial support, training, and access to market for youth entrepreneurs. Support in these areas should be strengthened. Systems approaches, such as multi-stakeholder platforms, provide holistic support to young agripreneurs (entrepreneurs in agriculture), but require effective coordination. Similarly, information and communication technologies can play a facilitating role by providing platforms to network and receive updated market information but need to be significantly scaled up. Individual capacities can drive youth engagement in agriculture and agripreneurship but must continue to be built up through expanded education and training on technical and functional skills.
As policymakers and program managers search for interventions that can promote youth involvement in agriculture in their own countries, the insights from the five countries examined that are presented in this paper may be useful for identifying context-specific challenges and pathways to successful youth engagement in agriculture in their own countries. The framework presented here can be applied to study youth engagement issues in any country or in sub-national, decentralized contexts to generate evidence to guide the design of youth-in-agriculture development programs. There is a need to support, strengthen, and implement the driving factors identified in this paper for expanding youth engagement in agriculture.

× Rwanda’s policy response to COVID-19 has been widely praised for its rapid, systematic, and comprehensive approach to containing the pandemic. Although the economic consequences are unavoidable, the country expects to return its economy to its high-growth trajectory as the pandemic subsides. We use economic modeling tools designed to estimate the short-term economywide impacts of the unanticipated, rapid-onset economic shocks of COVID-19 on Rwanda.
- Results show that during the six-week lockdown that began in March, Rwanda’s GDP fell 39.1 percent (RWF 435 billion; USD 484 million) when compared to a no-COVID situation in the same period.
- Results further show that Rwanda’s GDP in 2020 will be between 12 and 16 percent lower than a predicted no-COVID GDP, depending on the pace of the recovery. The losses in annual GDP are between RWF 1.0 and 1.5 trillion (USD 1.1–1.6 billion).
- While GDP for the industrial and services sectors were estimated to have fallen during the lockdown period by 57 and 48 percent, respectively, exemptions of COVID-19 restrictions for the agricultural sector limited the decline in agricultural GDP to 7 percent compared to a noCOVID situation.
- During the lockdown period, the national poverty rate is estimated to have increased by 10.9 percentage points as 1.3 million people, mostly in rural areas, fell into temporary poverty. Poverty rates are expected to stabilize by the end of 2020, increasing only by between 0.4 and 1.1 percentage points. While these figures may be encouraging, they mask the impacts on poor households of the sharp poverty spike during the lockdown and the inherent complexity of poverty dynamics post-lockdown.
Looking forward, the speed and success of Rwanda’s recovery will depend critically on the expansion of Rwanda’s social protection programs, boosting enterprises of all sizes, support to the agri-food system, and restoration of international trade.

× In Rwanda, as in other countries, different types of households will experience the economic effects of the COVID-19 pandemic differently. We use a microsimulation approach to highlight the importance of these differences and to draw attention to the diversified livelihood strategies of Rwandan households in order to fully understand COVID-19’s impacts on their income and poverty status. Our approach complements macro-level assessments of COVID-19’s economic impacts, focusing on the contribution of the income sources, asset holdings, and location (urban/rural) of households to understanding these differential effects.

× Despite rapid population growth, increasing land pressure and urbanization, farmers in Sub-Saharan Africa have not intensified their production in a sustainable manner and farming systems remain predominantly subsistence-oriented. Unsurprisingly, developing countries are directing large shares of their agricultural budgets to programs that actively promote crop intensification and the development of more commercially-oriented agricultural systems. Rwanda’s Crop Intensification Program (CIP), launched in 2007, is one such example. However, despite its apparent success in raising production of several priority crops, there are legitimate concerns about the food and nutrition security implications for households that are encouraged to consolidate their land, specialize in their production, and increasingly rely on markets for their food needs. Using recent household survey data and a propensity score matching difference-in-differences method, we find that participation in land consolidation activities had ambiguous consumption effects: it positively impacted on consumption of roots and tubers, but had a negative effect on meat, fish and fruits consumption and the potential availability of vitamin B12 in participants’ diets. This calls for a review of CIP implementation practices to enhance the program’s food and nutrition security outcomes, with improvements in market functioning and market access being potential starting points.

× These theories of change were developed to help the HarvestPlus program deliver on its planned outcomes and impacts. HarvestPlus expects to contribute to the reduction in micronutrient deficiency among women and children in rural areas of developing countries through the breeding and dissemination of staple crop varieties with increased levels of key micronutrients. After ten years of breeding, economic, and nutrition research to develop and assess varieties and their potential impact on human nutritional outcomes, HarvestPlus is entering a third five-year phase focused on delivering micronutrient-rich varieties at scale in nine target countries. To support program design, implementation, and evaluation in the “delivery” phase of the HarvestPlus program (2014–2018), theories of change were developed for three crop-country combinations—maize in Zambia, beans in Rwanda, and cassava in Nigeria—to describe how HarvestPlus expects to contribute to the outcome of reducing inadequate micronutrient intake among women and children in different agricultural and socioeconomic contexts in which HarvestPlus works. The evidence supporting the assumptions and risks for each link in the pathway is summarized and assessed. The results show that for some parts of the impact pathway, outcomes and causal links are well defined and supported by evidence. In other areas, the program logic needs to be better articulated so that hypotheses can be formulated and evidence generated. Addressing these gaps through research, adaptations in delivery activities, and monitoring can increase the likelihood of achieving expected outcomes as well as improve the ability of HarvestPlus and other nutrition-sensitive agricultural programs to learn from current activities to inform a broader scaling up.

× This paper uses case studies of Bangladesh, Ghana, Rwanda, and Senegal to assess the degree to which the L’Aquila Food Security Initiative (AFSI) has been implemented within the framework of managing for development results (MfDR) and to evaluate progress in various outcomes, including economic governance, agricultural growth, poverty, and food and nutrition security (FNS).

× This study assesses the future growth prospects of Rwanda. The report first focuses on broad economic growth using a rather aggregated 18-sector dynamic general equilibrium model to display the trade-off between rapid growth and structural change. The analysis shows that with the current investment pattern, rapid growth is possible but structural transformation is slow. With an overvalued exchange rate, growth in the tradable sector slows down and its share in the economy stays small. The importance of agriculture thus should be considered in the broad development strategy, for its role not only in poverty reduction but also in economic growth.

× Africa’s recent economic growth is at a historical high, the patterns associated with this growth appear to be quite different from the Asian experiences where rapid growth was fueled by labor intensive, export-oriented manufacturing. Because this pattern differs with our typical view of structural transformation, a heated debate has begun over the sustainability of Africa’s growth. In our view, Africa’s recent growth is still not well understood and thus it is difficult to say much that is meaningful about future prospects for growth on the continent. Against this background, we adapt Lewis’s (1954) dual-economy model to the economies of Africa to better understand the role that the “in-between” sector as defined by Lewis (1979) has played in Africa’s recent growth. Our framework incorporates the coexistence of a closed and an open modern economy and takes into account the diversity and heterogeneity of the activities that characterize modern African economies.

× An economywide, multimarket (EMM) model was developed for Rwanda to analyze the linkages and trade-offs between growth and poverty reduction goals at both macro- and micro-economic levels. The model includes 30 agricultural commodities or commodity groups from eight broad agricultural subsectors, along with two aggregated nonagricultural sectors. The analysis compares the economic, income, and poverty effects of a variety of growth scenarios based on existing national subsector growth targets. The analysis shows 6 percent of CAADP’s agricultural GDP growth target is achievable if growth reaches its target at the agricultural subsectoral level. But it is not enough for the country to achieve the MDG One, although the national poverty rate in 2015 will be 17 percent lower than that in 2005. Moreover, the household groups with the smallest landholding size, female-headed, or with few opportunities to participate cash crop production seem to benefit less from such growth. The study also examines the different growth-poverty linkages at agricultural subsector level, and shows that growth driven by productivity increases in staple crops and livestock production can reduce the poverty more than in the case where growth is driven by export crops or by the nonagricultural sector. The analysis also shows that to achieve growth required by CAADP and MDG One, the country needs to substantially beef up its public investment in agriculture. The share of agricultural spending in total government spending is required to increase from the current level of 5 percent to 10-35 percent in 2015.