THE REPUBLIC OF RWANDA - Nyanza District

1 THE REPUBLIC OF RWANDA ECONOMIC DEVELOPMENT AND POVERTY REDUCTION STRATEGY 2013 2018 SHAPING OUR DEVELOPMENT EDPRS 2 i TABLE OF CONTENTS ACRONYMS AND GLOSSARY .. v FOREWORD .. viii EXECUTIVE SUMMARY .. ix 1. SHAPING RWANDA 'S FUTURE .. 1 Introduction .. 1 The Context for EDPRS 2 The Changing Face of Poverty Reduction Strategies .. 2 Achievements under EDPRS 1 .. 3 Emerging Challenges for EDPRS 2 .. 8 Opportunities for EDPRS 2 .. 11 Principles of EDPRS 2 .. 12 2. ECONOMIC TRANSFORMATION .. 16 Introduction .. 16 What is Economic Transformation? .. 16 Strategic Framework for Economic Transformation .. 17 Five Priority Areas .. 20 Priority Area 1: Increase the domestic interconnectivity of the Rwandan economy through investments in hard and soft infrastructure .. 21 Priority Area 2: Increasing the external connectivity of RWANDA s economy and boosting exports.

2 23 Priority Area 3: Transform the private sector by increasing investment in priority 27 Priority Area 4: Transform the economic geography of RWANDA by facilitating and managing urbanisation, and promoting secondary cities as poles of economic growth .. 31 Priority Area 5: Pursue a green economy approach to economic transformation .. 33 3. RURAL DEVELOPMENT .. 36 Introduction .. 36 What is Rural Development? .. 36 Strategic Framework .. 38 Strategic Framework for Rural Development .. 38 Four Priority Areas: .. 40 Priority Area 1: Integrated Approach to Land Use and Human Settlements .. 41 Priority Area 2: Increasing the Productivity of Agriculture .. 43 Priority Area 3: Enabling Graduation from Extreme Poverty .. 47 Priority Area 4: Connecting Rural Communities to Economic Opportunity through Improved Infrastructure .. 49 4.

3 PRODUCTIVITY AND YOUTH EMPLOYMENT .. 55 Introduction .. 55 What do Rwandans do? .. 56 Who doesn t work in RWANDA ? .. 57 What is Productivity and Youth Employment? .. 57 Strategic Framework .. 58 Priority Area 1: Critical Skills and Attitudes for Service and Industrial Sectors .. 62 Priority Area 2: Technology and ICT .. 65 Priority Area 3: Entrepreneurship, Access to Finance and Business Development .. 66 Priority Area 4: Labour Market Interventions .. 68 5. ACCOUNTABLE GOVERNANCE .. 70 Introduction .. 70 What does Accountable Governance mean for RWANDA ? .. 70 EDPRS 2 ii Strategic Framework .. 71 Priority Area 1: Strengthening Citizen Participation, awareness and demand for accountability .. 73 Priority Area 2: Service Delivery .. 74 6. FOUNDATIONAL AND CROSS-CUTTING ISSUES .. 77 Introduction .. 77 Foundational Issues .. 77 Macroeconomic Stability.

4 77 Demographic Issues .. 77 Food Security and Malnutrition .. 78 Early Childhood Development (ECD) and Basic Education .. 79 Improving Quality, Demand and Accessibility of Healthcare .. 80 Rule of Law, Unity and Reconciliation, Security and Stability .. 81 Strengthening the Effectiveness of Public Finance Management (PFM) .. 82 Consolidating Decentralisation .. 83 Cross-Cutting Issues .. 83 Capacity Building .. 83 Environment and Climate Change .. 84 Family and Gender .. 85 Regional 86 HIV/AIDS and NCDs .. 87 Disaster 87 Disability and Social Inclusion .. 88 7. IMPLEMENTATION AND MONITORING AND EVALUATION .. 89 Implementation .. 89 Sequencing of Actions .. 89 Roles and Responsibilities .. 90 Communication for Ownership and Participation in Implementation .. 91 Monitoring and Evaluation .. 91 92 Monitoring Plan .. 93 Monitoring Tools.

5 93 Evaluation Plan .. 94 Institutional 95 Institutional Arrangements Evaluation .. 95 Capacity Development .. 96 8. MACROECONOMIC FRAMEWORK AND COSTINGS .. 101 Macroeconomic Framework .. 101 The Real Sector .. 101 The External 103 The Fiscal Accounts .. 103 The Monetary 104 The Cost of Implementing EDPRS 2 .. 105 Total Costs for EDPRS 2 initiatives .. 105 Breakdown of Costs by Thematic Area .. 106 Breakdown of Costs by Foundational Issues .. 110 Breakdown of Costs by Sector .. 112 ANNEX 1 THEMATIC PRIORITIES AND OUTCOMES MATRICES .. 114 Economic Transformation .. 114 Rural Development .. 119 EDPRS 2 iii Productivity and Youth Employment .. 122 Accountable Governance .. 124 ANNEX 2 EDPRS 2 MONITORING 125 ANNEX 3 EDPRS 2 MONITORING MATRIX SECONDARY INDICATORS (Baselines and targets to be developed in EDPRS 2).

6 135 ANNEX 4 District ECONOMIC TRANSFORMATION PRIORITIES .. 137 Tables Table Key Vision 2020 Targets .. 2 Table Output and Growth Rates 2008 to 2012 .. 3 Table Targets and Achievements of EDPRS1 .. 7 Table Poverty & Extreme Poverty Headcount (EICV 3) .. 9 Table Summary of Thematic Areas and Priorities for EDPRS 2 .. 15 Table Road Development (Transport Sector Strategy 2012) .. 51 Table Institutional Arrangements for EDPRS 2 Coordination, Monitoring and 97 Table Output and Growth Rates under Optimistic 101 Table Total Cost of EDPRS 2 Showing Thematic Areas and Foundation Sectors (RwF million).. 105 Table Total Costs by Thematic Area (RWF million) .. 106 Table Breakdown of Economic Transformation Thematic Area by Sectors (RwF million) .. 107 Table Breakdown of Rural Development Thematic Area by Sectors (RwF million).

7 108 Table Breakdown of Productivity and Youth Employment Thematic Area by Sectors (RwF million).. 109 Table Breakdown of Accountable Governance Thematic Area by Sectors (RwF million) .. 110 Table Breakdown of Costs of Foundational Issues by Sectors (RwF million) .. 110 Table Total Cost of EDPRS 2 by Type of Expenditure (RwF million) .. 111 Table Projected Sector Cost Division between Thematic Areas and Foundation Sectors (RwF million).. 113 Figures Figure Sector Output and Shares of GDP ..5 Figure Domestic and Foreign Investment as a Percentage of GDP ..6 Figure Level of Poverty by District (EICV 3) ..9 Figure Opportunity Areas for Prioritisation under EDPRS Figure Approach used to develop the Vision and Priority Areas for the Economic Transformation Strategy ..19 Figure Projected decline of cost of energy as key projects mature.

8 22 Figure Poverty Reduction Projections (MINECOFIN) ..38 Figure Rural Development Strategic Framework ..39 Figure Large increases in Employment and Students ..58 Figure Strategic Framework for Productivity and Youth Employment ..60 Figure Approach Used to Develop the Objective and Priority Areas for the Accountable Governance Strategy ..72 Figure CFSVA 2012 Nutrition and Food Consumption Map ..78 Figure Sector Growth Rates and Shares of GDP ..102 Figure Public and Private Investments as a Percentage of GDP ..102 Figure Exports, Imports and the Current Account (percentage of GDP) ..103 EDPRS 2 iv Figure Government Revenues as Percentage of GDP ..104 Figure Government Expenditures and Fiscal Deficit ..104 Figure Percentage Share of Total Thematic Costs over the Duration of EDPRS 2 by Thematic Area.

9 106 Figure Percentage Contribution of Sectors to the Cost of Economic Transformation .107 Figure Percentage Contribution of Sectors to the Cost of Rural Development ..108 Figure Percentage Contribution of Sectors to the Cost of Productivity and Youth Employment ..109 Figure Percentage Contribution of Sectors to the Cost of Foundational Issues ..111 Figure Percentage Share of Different Types of Projects in EDPRS 2 Costs ..112 Boxes Box Five Lessons to Build on from EDPRS 1 .. 13 EDPRS 2 v ACRONYMS AND GLOSSARY Acronyms AIDS Acquired Immunodeficiency Syndrome BCC Behaviour Change Communication BLCF Business Linkages Challenge Fund BDF Business Development Fund BNR Banque Nationale du RWANDA / National Bank of RWANDA BPO Business Process Outsourcing BRD Banque Rwandaise de D veloppement/ RWANDA Development Bank BRT Bus Rapid Transit CFSVA Comprehensive Food Security and Vulnerability Assessment CBO Community Based Organisation CCIs Cross Cutting Issues CEPGL Communaut Economique de Pays de Grands Lacs/ Economic Community for Great Lakes Countries/ COMESA Common Market for Eastern and Southern Africa CIP Crops Intensification Programme CSO Civil Society Organisation CPAF Common Performance Assessment Framework CRC Citizen

10 Report Card DPCG Development Partners Coordination Group DDP District Development Plan DPCG Development Partners Coordination Group DRC Democratic REPUBLIC of Congo DRR Disaster Risk Reduction EAC East African Community EARP Electricity Access Rollout Programme ECD Early Childhood Development EDPRS Economic Development and Poverty Reduction Strategy EICV Enqu te Int grale sur les Conditions de Vie des m nages (Integrated Household Living Conditions Survey) EWSA Energy, Water and Sanitation Authority FARG Fonds d'Assistance Aux Rescap s du G nocide / Genocide Survivors Assistance Fund FDI Foreign Direct Investment FFS Farmer Field Schools FONERWA National Fund for Environment and Climate Change GBV Gender Based Violence GDP Gross Domestic Product GoR Government of RWANDA Ha Hectare HIMO Haute Intensit de Main-d uvre/ Labour Intensive Works Program HIV Human Immunodeficiency Virus HLIs Higher Learning Institutions ICT Information and Communication Technology IDEC Industrial Development and Export Council IFC International Finance Corporation IFPRI International Food Policy Research Institute ILO International Labour Organization EDPRS 2 vi IT Information Technology JADF Joint Action District Forum JBSR Joint