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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?
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 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