Externally funded projects

I. Externally funded projects

The ongoing externally funded projects to be managed under the SPIU framework are: PPPMER-II, CEDP, EIF and RICP.

1. Projet pour la Promotion des Petites et Micro-Entreprises Rurales (PPPMER-II)

PPPMER-II is a 7 year Rural Small and Micro Enterprises promotion project- phase-II which was launched in 2004 as an extension of PPPMER-I which was launched 1996.

The main objective of PPPMER-II, like its predecessor, PPPMER-I is to provide support to resource poor Micro Enterprises and Co-operatives in order to reduce rural unemployment and increase income generation capacity of the disadvantaged lot within the Rwandan communities especially in the rural setting. The project is implemented through four components focusing on; (1) capacity building to strengthen SME development actors through co-operative management and governance training as well as supporting the establishment of the craft industry secretariat and the development of its five year strategic plan (2009-2013).

Component II focuses on support to rural SMEs through (2) apprenticeship training, provision of technical support by value chain advisors for cassava, fruit, beekeeping, tailoring and handcraft, marketing support, establishment of demonstration units, and other targeted initiatives like support to COPORWA which is scheduled to be mainstreamed in BDS centers.

Component III focuses on (3) support to Microfinance institutions through the provision of credit lines and guarantees to support financing of rural Small and Micro Enterprises. This component also targets specific support to SACCO for the preparation of their operational manuals and training of RCA staff who oversee the establishment and operationalization of SACCO.

Component IV focuses on the support to (4) project coordination and management. Specifically, this component focuses on enhancing the process of mainstreaming the project implementation responsibilities at the field level to the beneficiary institutions to ensure that the counterparts responsible for implementation of PPPMER-II activities in RDB, PSF, BDF and RCA fully take on board the PPPMER-II activities mainstreamed in their institutions.

2. Competitiveness and Enterprise Development Project (CEDP)

This is a six year World Bank funded project which was launched in March 2001. The project had an extension in 2008 with additional funding from World Bank and African Development Bank (ADB) and is slated for completion in December 2012. Its overall objective is to establish an enabling environment for the growth of a private sector led economy in the poverty reduction process.

Specifically the project is expected to lead to; (i) improved perception of investment climate and increased private investments; (ii)Growth of local small and medium enterprises (SMEs) (iii) Reduced cost of doing business and increased efficiency of utility services and (iv) Increased returns on the tea industry.

The main activities undertaken under this project include; (i) improvement of legal and business environment affecting private sector development (ii) improving efficiency of telecommunications and postal services, electricity and water services, the multi sector regulatory agency and the privatization secretariat, as well as private sector federation and (iii) promoting a market based tea industry.

3. Rwanda Investment Climate Project (RICP)

This is a three year project financed by an independent, not- for- profit, investment climate facility for Africa (ICF) whose main purpose is to make Africa more attractive to domestic and foreign investments. In this respect therefore, the project was designed with a focus on addressing major legal and regulatory constraints facing businesses in Rwanda, through three inter-related components; commercial dispute resolution; business registration reform and land registration reform.

Through the various activity interventions under the above mentioned components, the project aims at spurring deeper investment climate reforms in the existing GoR programs. The main activities undertaken under the project include; technical assistance and capacity building to enhance establishment and operationalisation of commercial courts to support the commercial dispute resolution component of the GoR’s justice sector, the Rwanda Commercial Registration Services Agency (RCRSA) which was restructured and made part of RDB, and building on the initiatives supported by DFID in the national land reform process, enhance technical and managerial capacity of the national land centre to fast track the process of issuing land titles to intending investors.

4. Enhanced Integrated Framework (EIF)

EIF is a collaborative agreement among EIF partners (World Bank, IMF, WTO, UNCTAD, ITC and UNDP) to address trade related challenges of the LDCs by mainstreaming trade into the national development plans of LDCs, to ensure coordinated delivery of trade related assistance identified by LDCs and strengthening national capacities for trade. Forty seven countries including Rwanda benefit from the EIF through country specific projects identified through DTIS. A three year project in the framework of EIF was approved in September 2009 to support trade enhancement activities identified in DTIS findings prepared by the Rwanda EIF team.

This project referred to as tier 1 project focuses on three main intended results; (i) Resource mobilization/donor coordination through arranging annual roundtable dialogue on trade issues and attracting additional donors (in addition to EC, DFID, Netherlands, UNOPS and World Bank). (ii) Trade mainstreaming and (iii) Preparation of tier 2 project which will focus on capacity building for traders e.g. farmers to move into commercial farming (especially milk productivity and conservation).The EIF activities are more of a process to initiate the development of projects to mainstream trade through elimination of trade business barriers and therefore not a project with clearly defined implementation framework.

5. Governance for Competitiveness Technical Assistance Project (G4C)

Governance for Competitiveness Technical Assistance Project (G4C) is a three year World Bank funded project with the objective of strengthening the institutional capacity of selected institutions and to improve competitiveness in selected sectors in Rwanda, in particular horticulture and tourism sectors. Through this targeted support, these sectors will boost foreign exchange earnings as well as create new employment– in alignment with Rwanda’s export growth and job creation agenda, with the aim to contribute towards increasing private investments, diversification of the export sector and creating additional sources of growth.

The G4C USD 5 Project will be implemented through four substantive components: Support for implementation of Strategic Capacity Building Initiative (SCBI) institutions that speak to competiveness; Support for implementation of the National Export Strategy; Improved Public Private Dialogue for Competitiveness. The fourth component will be dedicated to project implementation arrangements and coordination (MINICOM).

Note that the Governance for Competitiveness Technical Assistance Project (G4C) has a total budget of USD 5 million and it has a duration of 3 years commencing in 2012 through 2014. The institutions which will benefit from this project are: The Ministry of Trade and Industry (MINICOM), the Ministry of Public Service and Labour (MIFOTRA), The Public Sector Capacity Building Secretariat (PSCBS), Rwanda Development Board (RDB), The Ministry of Agriculture and Animal Resources (MINAGRI)/ National Agricultural Export Development Board (NAEB) and the Private Sector Federation (PSF).