Rwanda's Private and Public Sectors Collaborate, and Smallholder Farmers Become Commercial

Rwanda is on the cusp of agricultural transformation, helping smallholder farmers shift from subsistence farming to commercial success. The collaboration between the IFC Advisory Project, Rwanda Grain Markets, and the World Bank-funded Smallholder Agricultural Productivity Enhancement and Commercialization (SAIP) Project, both supported by the Global Agriculture and Food Security Program (GAFSP), illustrates how the private and public sector together can more significantly improve farmers yields and product quality for markets. This partnership has enhanced the quality of agricultural produce while empowering farmers to transition from subsistence farming to profitable ventures.

A Collaborative approach by engaging all stakeholders—from producers to policymakers—the SAIP Project has strengthened the agricultural sector. A strong focus on quality has allowed farmers to access premium markets, leading to a 15% increase in profit margins. With the support of the IFC, Rwanda Grain Market Project, the rejection rate of maize has also dropped from 90% to 60%, demonstrating the success of improved quality control measures.

“Engaging the private sector helps our farmers join the private sector,” said Sarah Nyiramutangwa, Senior Project Coordinator at Rwanda Agriculture and Animal Resources Development Board. “These cooperatives are private, and now they are doing business right. We are a government project [SAIP, through the Public Sector Window of GAFSP] but we are teaching our farmers to do business. It’s when you don’t engage the private sector that farmers don’t get exposure to what is required for success.” IFC supported innovative companies that work to decrease the prevalence of aflatoxin, a carcinogen that grows like mold and has been a pervasive threat in Rwanda. Though impossible to see without a microscope, it causes malnutrition as well as cancer and huge losses for farmers. Through IFC, AflaKiosk has provided mobile grain testing services that helped the SAIP farmers enormously. The company connects farmers who meet the high standards after testing with high-value markets. Aflakiosk began training SAIP farmers.

“We have provided training to smallholder farmers and they have really benefited because of the structure of the training we do,” said Benjamin Byinshi, general manager at Aflakiosk. “We follow them from harvesting to buyer. After assessing the gaps, we coach them on how to take care of the quality of the maize.”

On the SAIP side, robust efforts to improve food security have introduced kitchen gardens and biofortified crops such as nutrient-rich beans and mushrooms. These interventions have significantly enhanced household nutrition. Families now have better access to diverse and nutritious food sources, improving overall well-being. "Farmers now know that building a kitchen garden provides their children with access to nutritious vegetables," said Sarah Nyiramutangwa.

“SAIP provided us with training and knowledge, said Venuste Nkundimana, from the Kayonza District. “We participated in a study tour in Rulinda-Muyanza, where we learned how to grow chili

peppers. Inspired by what we saw, we returned and decided to grow chili pepper ourselves,” speaking of his cooperative. “Chili pepper farming has improved my livelihood.”

Driving Inclusive Growth

Women and young farmers are playing a central role in this agricultural transformation. Nearly 50 percent of beneficiaries in the SAIP matching grant scheme have been women, increasing their participation in cooperatives and decision-making roles. By creating opportunities for these groups, the initiative has strengthened local economies and promoted more inclusive agricultural development.

Extensive training and coaching have ensured that farmers can maintain high-quality standards from harvest to market. With 95% of participants benefiting from hands-on education, they are better equipped to meet the demands of premium buyers. "We provided training from harvest to market, ensuring farmers could maintain high-quality produce and access premium markets," said Byinshi. "We provided farmers with access to an online platform where they could trade their produce and gain valuable information," Byinshi explained.

Building a Sustainable Future

By creating a culture of quality, farmers are motivated to adopt sustainable techniques. These efforts ensure that progress continues beyond the lifespan of specific projects. The work between the public sector SAIP project and the private sector IFC Grains project highlights the power of collaboration, training, and innovation. By focusing on quality, empowering communities, and using technology, smallholder farmers are securing lasting economic opportunities. At 28 years old, Rwibasira Alexis has 8,500 avocado trees, as well as chili peppers and French beans. SAIP supported his growth with a small-scale irrigation system that serves his 13 hectares well. “Irrigation has changed everything,” he said.

“These farmers are no longer farming as a hobby or just for consumption, said Nyiramutangwa. “You can see there is climate-smart agriculture. They know if they want to go into agriculture, they should ensure they have quality produce, irrigation for water in case of drought, and a viable market.”