Rwanda Flora

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• Rwanda Flora
• wishes you
• A Happy Valentines Day!

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RWANDA FLORA PILOT Pioneering
Initiatives Linking
Outgrowers to Trade
GLOBAL FORUMScience, Technology andInnovation
Capacity for Sustainable Growth and Poverty
Reduction

• Executive summary presentation
• World Bank, Washington DC
• February 13-15, 2007

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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?

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• THE ROLE OF THE
• PRIVATE SECTOR
• Rwanda Floras experience

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Rwanda Flora

• Vision To be the incubator for floriculture and
  horticulture development in Rwanda
• RF is pioneering professional and organised
  horticultural production in Rwanda
• RF is the countrys 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.

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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.

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PILOT Program Goal

• Rural farmers revenues will go from 1USD to
• 10USD per day
• by the end of 2010.

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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

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Social contractsExpected results by year 2011
Indicator Currently at Rwanda Flora After expansion (6-18ha) PILOT Total
Increase in number of rural jobs created 200 gt600 4,255 gt5,055
Increase in number of rural women employed 160 gt480 2,268 gt2,908
Increase in number of rural children going to school 400 gt1,200 2,400 gt4,000
Increase in number of rural people on a medical plan 1,200 gt3,600 6,000 gt10,800
Increase in number of rural people with access to daycare 200 gt600 600 gt1,400
Increase in number of rural people having had HIV/AIDS training 200 gt600 600 gt1,400
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STATEMENT(how do we do it?)

• Rwanda Floras 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

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KEYS TO OUR SUCCESS

• Understanding global markets and access to market
  intelligence
• Our most important investment has been people
• We have learned to think like inventors and
  innovators
• This thinking process has provided us with clues
  to fund sourcing, networking and how to be
  successful doing business in a very challenging,
  post conflict environment

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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 MDGs in Rwanda

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OUR FUTURE CONTINUES

• Included in our PILOT program on reaching the
  poor is the micro poverty outreach rotating fund
• Through PILOTs 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

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Science and technology development, capacity
building LILI LOOP

No demand for skills development programs
No demand for technology
Limited Interest, Limited Investment
Limited private sector demand
Limited private sector demand
Who plunges first to escape this vicious cycle?
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SOUTH-SOUTH COOPERATIONHow can Rwanda catch up
with regional sector leaders?

• Instant fix
• Regional Technical Assistance
• Government cost sharing with sector pioneers,
  i.e. cargo
• Grants for first time ventures i.e. for
  technical assistance, training, installing and
  using new technologies, standards certification
• Government to provide long term finance and
  incentives for investors in agricultural
  activities, especially those linked to export.
• Mid-long term
• Governments must provide specific skills linked
  to market demand
• Research institutes need to develop data bases
  and appropriate technology for applied science
• Promote and support private companies to acquire
  international standards certification

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Launching PILOTWhat do we need?

• Capacity building towards bringing science and
  technology to the poor has a cost and should be
  taken seriously by the government and the donor
  community
• Scientific data bases and demonstration sites are
  needed to extend new technologies to the rural
  poor
• This is normally a government responsibility but
  for accelerated implementation of programs
  targeting business and poverty issues, financial
  assistance in the form of grants for the private
  sector will contribute to the pilot activities

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Launching PILOTWhat we need continues

• Brain drain issues not a concern in the rural
  areas that represent the majority of Rwandas
  population and Africa for that matter therefore,
  capacity building of rural youth with specific
  skills utilising appropriate technologies is not
  a risk
• On the contrary, it will contribute to creating
  wealth and diversifying rural economies

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• Murakoze