1<strong>2.</strong> <strong>Initiative</strong> for promoting rural entrepreneurship inRwandaAuthor: Espérance MukarugwizaOrganisation: Agri-Pro FocusThis case is one <strong>of</strong> specifically prepared by Agri-Pro Focus for the “<strong>Seas</strong> <strong>of</strong> <strong>Change</strong>” event, taking place in TheHague, 11-13 April 201<strong>2.</strong>Why is the case an interesting example?The IPER Program is a joint initiative <strong>of</strong> NGO, Private Sector, Government, Research institutions and farmerorganisations who strive to develop entrepreneurship <strong>of</strong> those who will be feeding the world in 2050.1. Context and backgroundAgriculture in Rwanda is for more than 90% smallholder agriculture with average acreage <strong>of</strong> less than 0,5 ha perfamily. To boost agricultural development and food production, developing entrepreneurship <strong>of</strong> successfulsmallholders is key. It is from this perspective that ICCO, Agriterra and Terrafina in 2008 decided to join forces inRwanda to make value chains more competitive, sustainable and inclusive. They developed a joined program andnamed it IPER (<strong>Initiative</strong> pour la Promotion de l’Entrepreneuriat Rural). When Agri-ProFocus late 2008 began withestablishing Agri-Hubs other Agri-ProFocus members (SNV, IFDC, Oxfam/Novib, WUR, KIT, VHL) joined theinitiative and IPER became the major activity <strong>of</strong> Agri-Hub Rwanda. All partners committed a certain amount <strong>of</strong> timeand/or money for a 4 year period (2009-2012). In the division <strong>of</strong> labor, the idea was that APF members, throughtheir existing partner relations and activities, would cater for the facilitation and coaching <strong>of</strong> commodity-orientedAgri-Business Clusters. All Agri-Business Clusters would be facilitated in the same way and also would get theopportunity to draw upon a small basket-fund for activities to resolve “burning issues” hampering the development<strong>of</strong> the respective Agri-Business Cluster. In 2009 IPER started with 15 Agri-Business Clusters in 6 Value Chains. Atthe end <strong>of</strong> 2011 the number <strong>of</strong> Agri-Business Clusters had increased up to 30, involving about 250 cooperativeswith an impact on more than 7,000 households.Within 3 years IPER has developed a successful model for boosting farmer entrepreneurship. Although theprogram as such will end in 2012, Agri-Business Cluster Leaders already have indicated that they will continuepulling together chain actors to find solutions for “burning issues” in the Cluster.<strong>2.</strong> Underlying business modelThe IPER program is a way to help organized farmers develop their business. At the heart is the idea <strong>of</strong>facilitating all actors along a specific value chain in a specific area to come together and discuss how to improvethe functioning <strong>of</strong> the value chain for the gain <strong>of</strong> all (win-win solutions). The model is inspired by CASE(Competitive agricultural systems and enterprises), developed by IFDC in West Africa.In general the programme has the following elements:1) Training <strong>of</strong> local Agri-Business Cluster facilitators, mostly working for local NGO’s2) Put in place a small ‘basket-fund’ to finance quick actions (consultancies, study-trips, etc.) to resolveburning–issues.The Cluster facilitators facilitate the process-cycle <strong>of</strong> Agri-Business Cluster development:1) Identifying “Cluster Leaders” (mostly leaders <strong>of</strong> farmers-organisations) and help them to organise a multistakeholderworkshop with representatives <strong>of</strong> all actors along the chosen value chains in their respectiveareas2) During the workshop define business targets and “burning issues” which should be resolved to improvethe functioning <strong>of</strong> the chain and reduce risks and/or increase pr<strong>of</strong>its for all actors,3) Make action-plans, find funding ( quick actions – basket fund; investments – banks) and implementimprovements4) Evaluate results and define new targets and “burning issues”, etc.53
InvestmentFundGuaranteeFund €Basket fund€ExpertsEconomic objectivesIndependent broker(agribusiness coach)Financial and humanresourcesNavigatingbusinessPOABC1Burningissues2Proposal forfacilitation andcapacitystrengthening31 5Serviceprovision4Demand-driven -- Basket funding3. Evolution <strong>of</strong> the initiativeThe IPER Programme is unique in its concept <strong>of</strong> collaboration <strong>of</strong> Agri-ProFocus member organisations and theirlocal partners. By June 2009, the commitments and contributions <strong>of</strong> the Agri-ProFocus coalition members werematerialized in a Country Collaboration Agreement. As from that moment, process facilitation started, mainlythrough the regular organization <strong>of</strong> workshops, training sessions and coaching missions. The countrycollaboration agreement clearly defined the roles <strong>of</strong> the signatories. Almost all participating APF membersaccepted to play a specific role. Five organizations would act as focal point for a certain commodity. Sixorganisations agreed to take the lead for cross-cutting thematic priorities. The commodities and thematicpriorities are indicated in the figure below.Facilitation learning bydoing process (WUR, KIT,ICCO, IFDC, SNV)Cross-cutting thematicpriorities and leadsIFDC Input supply &agriculturalintensificationTerrafinaOxfam Gender andNovib social inclusionAgriterraPO capacitydevelopmentWUR- AR, agriservices,CDI &KIT innovation &capitalizationOverall coordination(ICCO, WUR-KIT and Agri-ProFocus support <strong>of</strong>fice)Focal points for commodities and value chainsSNV ICCO OxfamNovibAgriterra Agriterra IFDC“Facilitators”Access to finance Honey Rice Maize Potatoes Cassava WheatHoneyclusters(3)Riceclusters(3)Agribusiness clustersMaizeclusters(4)Potatoclusters(1)Cassavaclusters(2)Ownership <strong>of</strong> IPER is shifting gradually to Rwandese organizations. In 2010, a provisional steering committee wasput in place, with the idea to involve Rwandan resource persons in the strategic orientation <strong>of</strong> IPER. In February2012, Agri-Hub members suggested to sustain the IPER program by setting up a diverse steering committee,54Wheatclusters(2)
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