The Rwandan Ministry of Agriculture and Animal Resources in collaboration with AGRA has put forward a call to businesses and individuals for proposals and business models that can boost Rwanda’s Agricultural Mechanization sector.
Mechanization, along with other farm inputs such as fertilizers, improved seeds and pesticides, can significantly improve agricultural productivity in Rwanda. Mechanization is a powerful tool in achieving sustainable agricultural production because it enhances human capacity with the potential beneficiaries being men and women farmers. It allows timeliness, efficiency and consistency in field operations. This is critical for land preparation especially in Rwanda where there is sequential cropping owing to the receipt of rainfall through two seasons a year in most parts of the country.
Farm mechanization can help perform the power-intensive and ergonomically arduous tasks. It can also relieve the growing seasonal labour constraints that are experienced by farmers in several parts of the country. It also helps compensate for the emigration of rural youth who are disenchanted with the drudgery involved in agriculture. Thus mechanization, contrary to the restricted opinion on labour displacement, stands to complement human labour in improving agriculture production in Rwanda.
Through this call for proposals, AGRA supports the Ministry of Agriculture and Animal Resources in sourcing innovative business solutions that cloud in the private sector in mechanization business.
GoR wants to enhance the use of mechanization in the agricultural value chains as a response to COVID19 which has led to a lack of human labour available to undertake agricultural works. AGRA in partnership with MINAGRI seeks to identify business models for increased mechanization services in Rwanda.
Support to the applicants will consist of de-risking instruments that overcome barriers for investment in mechanization.
Business models may be built around consortia of stakeholders including Farmers and their organizations, Mechanization service providers, Equipment manufacturers and distributors, financial institutions and technology providers. All are eligible applicants. Innovative, bankable business models will benefit from the de-risking facility that will be made available.
The opportunity consists of a de-risking facility that will be made available to incentivize investments in equipment, service provision and the development of the business cases for mechanization provision. The Mechanization Market Intelligence report prepared by the Ministry of Agriculture (attached) gives an indication on the business opportunities that exist in the area of mechanization and the business models that might be profitable in the longer run.
The Ministry and AGRA are looking for concepts which demonstrate how the available de-risking funds can enhance the uptake and usage of mechanization in the various stages of the agricultural production cycle, whereby a study conducted by the Ministry of Agriculture indicates the priority for mechanization in irrigation, spraying/weeding, post-harvest handling and land preparation.
The implementation period covers three seasons, starting from season A2021 which starts in September 2020. The interventions would be expected to close by July 2022 and be implemented in Rwanda only.
Responses to this call should clearly demonstrate how applicants will effectively enhance access to mechanization services for the benefit of farmers by showing the business case of mechanization for all stakeholders: farmers, mechanization services providers, equipment manufacturers and distributors and financial institutions.
All parties interested in submitting proposals and becoming part of this initiative can find more information by clicking here.
LonAgro Rwanda prides itself on always being the forefront of this initiative, both the in supply, financing and support of farmers looking to mechanise their operations. For more information on how to best mechanise your farming operations, contact LonAgro Rwanda today!