27th-28th June @Lemigo Hotel

1. Introduction

Through its Vision 2050, Rwanda aspires to become an upper-middle income country by 2035, and a high-income country by 2050. Specifically, this means that the GDP per capita will be over USD 4,036 by 2035 and over USD 12,476 by 2050. Rwanda continues to build on the strong progress made in reducing poverty over the last two decades, reducing the poverty rate from 78% after 1994 to 38% in 2017, with the aim of eliminating poverty altogether. This continues to be achieved through ensuring all walks of society have increased opportunities to contribute to national development, including by growing investments in human capital and ensuring universal access to amenities, safety and security. All youth, women, men, Persons with Disabilities (PWDs) and elderly people will contribute as actors of sustainable development, ensuring that no one is left behind in benefiting from development. Vision 2050 is informed by the aspiration of Rwandans of leaving to Rwandan children a better world to live in.

As such, growth and development will follow a sustainable path in terms of use and management of natural resources while building resilience to cope with natural, economic, political and climate related shocks. Rwanda targets to become a green, climate resilient and low carbon economy by 2050. These aspirations will continue to be embedded in Rwanda’s long term Green Growth and Climate Resilient Strategy (GGCRS) whose impact is intended to bring about mind-set and developmental transformation in Rwandan society that is necessary to achieve the desired carbon-neutral and climate resilient economy. Efficient use of land across sectors will be guided by the National Land Use and Development Master Plan (2020-2050). To achieve the Vision’s targets, Rwanda needs to transform the structure of its economy to respond to current challenges imposed by technological progress and climate change. Furthermore, Rwanda has to overcome the limits of its small domestic market and landlocked position and find its place in global and regional value chains.

2. About the 10th Economic Research Conference

The Economic Policy Research Network and partners organized the 10th Annual Economic Research Conference under the following theme : “Reimagining effective policies towards inclusive, sustainable and resilient development in Rwanda”. This Conference was held on 27th-28th June 2024 at Lemigo Hotel, Kigali Rwanda. Note that the actual conference was preceded by a pre-conference session on 13-14 June 2024 whereby 13 papers from EPRN members were presented to select the best ones for the conference.

The main theme was subdivided into the following sub-themes to which Research Papers and panel discussions sessions were aligned :

a. Enhancing resilience of economies in this era of socio- economic shocks
b. Efficient tax policy and tax administration for inclusive and sustainable development
c. Enhancing human capital development in Rwanda, challenges and opportunities
d. Policy Options to Enhance Food and Nutrition Security in Africa

This high-level and interactive 2-day research conference brought together more than 200 participants, including researchers, senior policymakers, representatives of the development partners, civil society, private sector and the media. During the conference, research papers and reports related to conference sub-themes were presented and discussed. Policy recommendations have also formulated and shared with the concerned institutions as a contribution towards boosting Rwanda’s economic resilience during the current socio- economic shocks.

3. Conference highlights

3.1. Welcome and opening remarks

Welcome remarks by Prof. Charles Ruranga, EPRN Chairperson
The welcome remarks were given by the Chairperson of EPRN, Prof. Charles Ruranga who started by thanking all participants who were present to the conference. He reminded that the Economic Policy Research Network (EPRN Rwanda) is a Research and Training Institution that contributes to evidence-based economic policymaking. He said that EPRN achieves this through conducting high-quality research, fostering capacity building, and facilitating networking opportunities for local experts. Organizing research conferences is one of the key activities undertaken by EPRN on annual basis.

Prof. Charles indicated that the socio-economic impacts of major shocks such as the COVID-19 pandemic, geo-political conflicts and climate change have had profound and far-reaching effects on both livelihoods and economies. These impacts have inevitably resulted in immediate economic hardships, forcing governments to propose ambitious anti-recession measures.

“The success and pace of recovery will depend on the strength and effectiveness of the policies implemented during this crisis. Economic research undoubtedly plays a crucial role in analyzing the consequences of the current crisis, adopting a comparative-historical approach to previous economic downturns” Prof Charles Ruranga.

Prof. Charles concluded his remarks by thanking all partners who provided technical and financial support for the successful organization of this conference. He specifically thanked the International Centre for Tax and Development (ICTD), the United Nations Development Programme (UNDP), the AKADEMIYA 2063, UNICEF, the International Food Policy Research Institute (IFPRI) and the United Nations Economic Commission for Africa (UNECA) for their tremendous support through the organization of this conference. He said EPRN is committed to maintaining this collaborative relationship in the future as we continue to host these significant annual research conferences and policy dialogues.

Key Note Address by Dr. Giulia Mascagni of the ICTD, incoming Executive Director
The key note address was delivered online by Dr. Giulia Mascagni, a Research Director of the International Centre for Taxation and Development (ICTD) and Research Fellow at the Institute for Development Studies (IDS). She mentioned that on behalf of the ICTD, she is delighted to contribute to the 10th Annual Conference of the Economic Policy Research Network, Rwanda, which this year has been organized around the theme Rethinking effective policies towards inclusive, sustainable and resilient development in Rwanda.

Dr. Giulia started by highlighting the work of ICTD and mission. She mentioned that ICTD’s mission is to undertake high value collaborative research in a way that is equitable, effective and accountable. This process then provides strong evidence base so that decision makers can make the best possible decisions on matters tax.

She noted the 10-year relationship with the Rwanda Revenue Authority on tax matters which has resulted in several publications on tax research, some of which have been undertaken by members of the EPRN as well. Some of the researches conducted through collaboration with the ICTD were on topics like : domestic resource mobilization, High Net Worth Individuals, property taxation, sustainable development and tax administration, etc.

Dr. Giulia concluded by wishing fruitful discussions on the topics around tax and other areas and thanked all participants for their presence.

Opening Remarks by the Guest of Honor, Mr. Leonard RUGWABIZA, Economic Advisor, Ministry of Finance and Economic Planning.

Mr. Leonard Rugwabiza started by saying that he is blessed to give the opening remarks on behalf of the Honorable Minister of finance and Economic Planning, Mr. Yusuf Murangwa who wished to attend in person but had conflicting programmes. He also thanked the Economic Policy Research Network (EPRN) and partners for having organized this conference for the 10th time now and said this is indeed a good opportunity for researchers, academia policy makers, development partners and private sector meet to discuss on the development policies and actions to enhance our country’s resilience.

Mr. Leonard indicated that the socio-economic crisis associated with the COVID-19 pandemic has exacerbated the development challenges facing Rwanda and other least developed countries (LDCs). There is an understanding that an effective response to the crisis will require building long-term resilience to current and future shocks through the development of productive capacities and transformation of the production and export structures of the economy. He further said that Rwanda’s Vision 2050 sets out the country’s long-term development objectives : moving toward zero poverty and becoming an upper-middle income country by 2035, and high-income country by 2050, achieving this through high savings and investment and structural transformation to a knowledge-based economy. To achieve this Vision’s targets, Rwanda needs to transform the structure of its economy to respond to current challenges imposed by technological progress and climate change. Furthermore, Rwanda has to overcome the limits of its small domestic market and landlocked position and find its place in global and regional value chains.

“Let this conference be an opportunity to think again on negative effects of the shocks on macro and micro level, and I wish discussions to be held today and tomorrow come up with concrete recommendation which may guide the concrete policies and strategies to accelerate economic recovery for the Rwandan and regional economy” Mr. Leonard Rugwabiza.

He concluded his remarks by thanking the Akademiya 2063, UNDP, ICTD, UNECA and UNICEF, for having supported EPRN in organizing this 10th research conference ; and said these institutions are indeed among key partners of the country in our development agenda. The remarks were followed by a group photo.

3.2. Conference Proceedings

DAY 1 : 27th June 2024

3.2.1. Session 1 : Enhancing resilience of economies in this era of socio- economic shocks

The first presentation was delivered by Dr. Andrew Mold and was about Economic integration as a priority towards more resilient development in Rwanda and the EAC.

Key Points :
• The global debt is heavily concentrated in developed economies. Rapid monetary tightening, particularly in the U.S., impacts emerging markets like those in East Africa. Eastern African countries, including Kenya, Tanzania, and Uganda, hold significant foreign debt.
• East Africa has seen strong economic growth, with countries like Ethiopia, Rwanda, and Tanzania consistently growing above 4.2% annually. There are concerns about the sustainability of this growth given the global economic environment and internal challenges.
• Commodity prices have declined, but food prices remain high, posing a challenge for food security in the region. Rising food import bills are a significant concern.
• Intra-EAC trade has shown resilience despite global economic challenges. Rwanda’s exports, as a percentage of GDP, have increased, but the intra-African share of trade has stagnated.
• Progress on the African Continental Free Trade Area has been mixed, with several tariff offers submitted and verified, but negotiations on remaining tariff lines still needed. The implementation of AfCFTA is seen as crucial for deepening economic integration and increasing productivity.
• Eastern Africa faces significant challenges in meeting Sustainable Development Goals (SDGs), particularly in the context of high debt repayments and limited resources.

Implications
• High levels of foreign debt necessitate careful management to avoid economic instability.
• The region needs strategies to manage and mitigate the impacts of global monetary policies.
• Ensuring sustainable economic growth requires diversification and strengthening of domestic industries. Emphasis on innovation and technology, including robotics and AI, can drive future growth.
• Addressing food insecurity requires both short-term and long-term strategies, including improving agricultural productivity and reducing dependency on food imports.
• Enhancing intra-regional trade within the EAC and through AfCFTA is crucial for economic resilience. Improving trade infrastructure and reducing barriers can boost regional trade.
• Investment in connectivity and infrastructure is critical to support economic activities and integration efforts. Development of corporate IT infrastructure, connectivity projects, and support systems like LMS (Learning Management Systems) and smart classrooms will aid in achieving educational and economic goals.

Conclusions
• Economic integration within the EAC is vital for building resilience against global economic volatility. Strengthening regional trade and cooperation can buffer against external shocks.
• Policymakers need to focus on sustainable economic policies that prioritize debt management, food security, and infrastructure development. Implementing and fully operationalizing AfCFTA will be key to unlocking the potential for increased trade and economic integration.
• Stronger regional cooperation and harmonization of policies can enhance economic stability and growth. Shared efforts in addressing common challenges, such as food security and infrastructure deficits, can lead to more resilient development outcomes for the region.

These key points, implications, and conclusions provide a comprehensive overview of the importance of economic integration for resilient development in Rwanda and the EAC, highlighting both current challenges and future opportunities.

After the presentation, participants had time to brainstorm on the content and asked questions which were responded by the presenter.

The 2nd presentation was delivered by Dr. Osten Chulu and was about financing for sustainable development and resilience.

Key Points :

Financing involves securing or providing funds for business activities, purchases, or investments. In simple terms, financing enables businesses or individuals to buy products or make investments that are beyond their current financial means. It leverages the time value of money (TVM), which means using anticipated future cash flows for projects that start today. TVM indicates that a specific amount of money has greater value now than the same amount will have in the future, due to its potential to earn interest or returns in the meantime (Investopedia).

Financing is typically linked to debt instruments and sustainable development financing is crucial for ensuring that present needs are met without compromising the ability of future generations to meet their own needs. It plays a key role in addressing poverty, inequality, and environmental challenges, which are critical for achieving overall development goals. Sustainable development financing involves addressing a variety of issues categorized into three main areas :

a. Environmental Issues :
• Quality and Functioning of Natural Systems : This includes maintaining biodiversity and preventing biodiversity loss.
• Pollution and Resource Depletion : Tackling greenhouse gas emissions, enhancing energy efficiency, promoting renewable energy, and managing waste effectively.
• Climate Change and Land Use : Addressing ozone depletion, changes in land use, ocean acidification, and alterations in nitrogen and phosphorus cycles.

b. Social Issues : Rights and Well-being :
• Ensuring human rights, improving labor standards, and promoting health and safety. Community Relations : Fostering good relations with local communities, managing activities in conflict zones, and ensuring access to medicine and consumer protection.
• Controversial Weapons : Addressing issues related to the use and regulation of controversial weapons.

c. Governance Issues : Management of Investee Entities :
• This includes the structure, size, diversity, skills, and independence of the board, as well as executive pay and shareholder rights.

d. Stakeholder Interaction and Ethics :
• Ensuring transparent disclosure of information, maintaining high business ethics, preventing bribery and corruption, and managing internal controls and risks effectively.

e. Post COVID-19 Financing Requirements to Meet SDGs (2020–2030) :
• Health and education require 5.9% of GDP annually.
• Infrastructure requires 15.4% of GDP annually.
• Total additional spending amounts to 21.3% of GDP annually, with funding sources including domestic revenue growth, spending reallocation, private finance, and official development assistance (ODA).

Sustainable development financing thus requires a comprehensive approach to environmental stewardship, social responsibility, and good governance practices. By integrating these elements, it aims to create a balanced and sustainable future.

Implications of Sustainable Development Financing

• By investing in renewable energy and improving energy efficiency, economies become less vulnerable to fluctuations in fossil fuel markets and environmental disasters.
• Efficient management of natural resources ensures that economic activities can continue without depleting the resources needed for future growth.
• Reduction of Poverty and Inequality : Sustainable development financing addresses fundamental social issues, helping to reduce poverty and bridge the gap between different socioeconomic groups.
• Investments in healthcare, education, and community development lead to better living conditions and opportunities for all members of society.
• By reducing greenhouse gas emissions and promoting renewable energy, sustainable development financing helps to combat climate change and its associated risks.
• Protecting natural habitats and promoting biodiversity helps maintain the ecosystem services that are vital for human survival and economic activities.
• Enhanced Corporate Responsibility : Companies are held accountable for their social and environmental impact, leading to more ethical business practices and improved public trust.
• Improved governance practices, including disclosure of information and stakeholder engagement, result in better decision-making and reduced corruption.
• Innovation and Competitiveness : Encouragement of Innovation
• Sustainable development financing fosters the development of new technologies and business models that are both economically viable and environmentally friendly.
• Businesses that adopt sustainable practices can gain a competitive edge by meeting the growing demand for environmentally and socially responsible products and services.
• Addressing global challenges such as climate change and inequality requires international cooperation and coordinated efforts, which are facilitated by sustainable development financing.
• By promoting sustainable development globally, nations can work together to ensure a more equitable distribution of resources and benefits, leading to a more stable and prosperous world.

Sustainable development financing has far-reaching implications that contribute to economic stability, social equity, environmental protection, good governance, innovation, and global cooperation. It provides a holistic framework for addressing some of the most pressing challenges of our time, ensuring a sustainable and equitable future for all.

After the two presentations, there was a panel discussion on Enhancing resilience of economies in this era of socio- economic shocks.

Key Highlights from the panel discussions :

a. Global Context and Challenges :
• The economic environment is volatile due to geopolitical tensions, fluctuating commodity prices, and high global public debt primarily held by developed economies.
• Monetary tightening by major economies has impacted borrowing costs and economic stability in developing regions like East Africa.

b. Economic Growth Sustainability in East Africa :
• East Africa has experienced strong economic growth, with countries like Ethiopia, Rwanda, and Tanzania being consistent performers.
• Recent accelerations in economic growth have been observed in Cameroon, while countries like Chad and Angola have faced slowdowns. The sustainability of this growth is under question, especially with rising debt levels and external economic shocks.

c. Commodity Prices and Food Security :
• Commodity prices have declined, yet international food prices remain high, posing a challenge to food security in the region.
• Food import bills have risen sharply since 2022, impacting local economies.

d. Regional Trade Integration and Economic Growth :
• Intra-EAC trade has shown resilience, but the share of intra-African trade has stagnated.
• The African Continental Free Trade Area (AfCFTA) presents an opportunity to deepen economic integration, increase productivity, and create jobs.
• Enhancing trade integration through the AfCFTA can help stabilize the region’s economies by fostering intra-African trade and reducing dependency on external markets.
• Focus on improving infrastructure and regulatory frameworks to facilitate smoother trade across borders is crucial.

e. Progress on Sustainable Development Goals (SDGs) :
• Progress on SDGs in Eastern Africa has been faltering, with significant gaps in resources and financing needs to achieve these goals by 2030.
• High debt repayments are a critical concern, impacting the ability to invest in sustainable development.

f. Economic Policy and Food Security :
• Policymakers in East Africa need to explore economic policies that ensure food security, addressing the challenges posed by high food prices and rising import bills.
• Diversification of agricultural production and investment in local food industries could mitigate some of these challenges.

g. Debt Management and Investment :
• Managing high levels of debt while ensuring investment in key sectors is essential for sustained economic growth.
• Innovative financing solutions and leveraging international support could help bridge the financing gap for achieving SDGs.

Conclusive remarks :
• Building economic resilience in the face of socio-economic shocks requires a multifaceted approach, including stronger economic integration, sustainable agricultural practices, and robust financial management.
• Regional cooperation and integration through platforms like the EAC and AfCFTA are vital in creating a buffer against global economic uncertainties.

3.2.2. 2nd Session : Policies to improve domestic revenue mobilization

The 3rd presentation was delivered by : Dr. Fabrizio Santoro from the ICTD and was about taxing the wealthy in lower-income countries : research evidence and policy implications. Here below is a summary on key points, conclusions, and implications for his presentation.

Key Points :
• Lower-income countries (LICs) face severe challenges such as increasing global tensions, high debt levels, and climate change. LICs are struggling to raise sufficient revenues, making it crucial to tax the wealthy more effectively.
• LICs raise significantly less revenue from property, inheritance, and financial transaction taxes compared to high-income countries (HICs). Wealth inequality is more pronounced in LICs, particularly in Sub-Saharan Africa (SSA).
• LICs should prioritize improving the enforcement of existing taxes on income, rents, and capital gains. These instruments are already part of existing laws, and enhancing their enforcement is likely to be less controversial than introducing new taxes.
• A significant obstacle to effective taxation is the political will to counter elite opposition. New taxes face substantial opposition, and parliamentary discussions may be hijacked to prevent significant reforms.
• Designing effective wealth taxes requires accessible data, which is often lacking in LICs. Better enforcement of income and property taxes could help gather the necessary data.
• Personal income taxes (PIT) and other taxes on wealthy individuals account for a smaller proportion of GDP in LICs than in HICs. Effective tax rates are lower in LICs due to narrower tax bases, discretionary exemptions, and poor enforcement.

Conclusions
• Improving compliance from wealthy individuals with existing tax obligations would enhance the equity of LICs’ tax systems. There is a disproportionate tax burden on few formal employees, small firms, and consumers, while wealthy individuals often evade taxes.
• Lax enforcement of income and property taxes results in substantial revenue losses. Evidence from Uganda and Freetown indicates that focusing on wealthy individuals’ compliance can yield significant revenue gains.
• Strengthening tax administration by establishing dedicated units for high-net-worth individuals (HNWIs) and enforcing existing laws can be effective. Voluntary asset declaration schemes and digitalizing tax returns can help gather necessary information for tax purposes.
• Legal frameworks need to be improved for better data sharing and enforcement. Clear definitions and mandatory submissions of tax and information returns are crucial for effective wealth taxation.
• A cooperative compliance strategy involving politicians and the public can promote a culture of tax compliance. Sensitization and communication campaigns are essential to gain public support and ensure compliance.

Implications for Policy and Practice
• LICs should focus on strengthening the enforcement of existing tax laws rather than introducing new taxes. Legal and policy frameworks must be updated to facilitate better data sharing and enforcement.
• Enhancing tax compliance among wealthy individuals can significantly boost domestic revenue mobilization. Investments in tax administration and technology are essential for long-term improvements.
• Ensuring that wealthy individuals pay their fair share of taxes will improve the equity of the tax system. Reducing the tax burden on small firms and consumers by targeting wealthier taxpayers can promote fairness.
• Building political will and public support for tax reforms is crucial for successful implementation. Engaging with civil society and conducting education campaigns can help foster a culture of compliance and support for tax reforms.
• By focusing on these areas, LICs can improve their domestic revenue mobilization efforts and address the challenges of wealth inequality and inadequate public finances.

The 4th presentation was delivered by Dr. Colette Nyirakamana from LOGRI/ICTD and was about Unlocking the Property Tax Potential for Domestic Revenue Mobilization.

Key Points
• Many systems depend on central government registration of land and ownership, which is often contentious, costly, and slow, creating barriers to property taxation. Local addressing systems are often complex and incomplete, leading to gaps in registration and enforcement. Strategies include allowing properties to be registered for tax purposes separate from formal cadaster processes and using satellite data to support property identification and simple addressing.
• Expert valuation is slow, expensive, and subjective, often leading to outdated, incomplete, and potentially corrupt valuations. Area-based systems can be highly regressive, undermining revenue equity and trust. Hybrid valuation models (e.g., points-based systems) translate observable property characteristics into taxable values, reducing costs, increasing speed, and enhancing transparency.
• Automation is crucial but often complex, expensive, and unsustainable, creating dependencies on providers. Procurement is prone to corruption and lacks market transparency. Simplified, lower-cost systems that emphasize interoperability, flexibility, and sustainable local support can avoid provider lock-in.
• Limited public trust leads to low compliance and political support for reforms. Trust issues stem from a lack of transparency, equity, and accountability in service delivery. Strategies include substantial outreach to taxpayers, transparent and fair reform strategies, and establishing strong links between revenue collection and service delivery (e.g., participatory budgeting, earmarking funds for visible public services).

Conclusions from the insights
• Successful property tax reform requires context-specific strategies that consider legal, institutional, technical, and political dynamics.
• The approach used in Freetown, Sierra Leone, demonstrated that doubling assessed properties and fully mapping and automating the system could significantly increase revenue potential and actual revenue collected.
• Building political and popular support through transparency and participatory approaches is key to overcoming resistance to reforms.

Implications of the insights on property tax
• Property tax reforms can significantly enhance domestic revenue mobilization, especially in low-income countries where traditional tax systems may be inefficient and inequitable.
• Simplified and transparent systems for property identification, valuation, and taxation can improve compliance, equity, and trust in the tax system.
• Effective implementation of such reforms requires substantial investment in outreach and education to build public and political support.
• Adopting flexible, locally supported IT systems can mitigate risks associated with complex and costly automation projects.
• Successful reforms can serve as templates for other regions, though they must be adapted to local conditions and constraints.
• This summary highlights the major challenges and strategies for improving property tax systems, emphasizing the importance of context-specific solutions and the potential benefits of successful reform initiatives.

The 5th presentation was delivered by : Clement Uwizeye, EPRN

Key Points

• The Tax-to-GDP ratio is crucial for assessing a country’s fiscal health. Understanding the co-movements between tax-to-GDP can guide economic policies. Questions to explore include the impact of government spending, industry, and service sectors on tax-to-GDP, and the resilience of tax policies against currency depreciation and inflation.
• Economic activity and GDP growth enhance tax revenues by broadening the tax base (Dahal, 2020).
• Higher government spending may require increased taxes or more effective tax collection (Nguyen and Darsono, 2022).
• High inflation reduces the real value of tax revenues and shrinks the tax base (QadirPatoli et al., 2012).
• High inflation correlates with a decline in tax-to-GDP. Declines in both nominal and real GDP correlate with lower tax-to-GDP. Higher industry value added correlates with a decline in tax-to-GDP. Currency depreciation correlates with a decline in tax-to-GDP. Higher government spending correlates with a decline in tax-to-GDP, indicating a budget deficit.

Policy Recommendations :
• Identify and replicate successful elements in current and future policies.
• Focus on refining and sustaining tax policies to ensure economic stability and growth.
• Explore alternative strategies and enhance coordination between tax policies and economic variables.

Implications
• Economic Policy Formulation : Insights from co-movement analysis can guide more effective economic policies and tax reforms. Aligning tax policies with economic variables can improve fiscal health and economic performance.
• Inflation and Economic Stability : Understanding the impact of inflation on tax revenues can help develop more resilient tax policies. Effective coordination between tax policies and inflation control measures is crucial for economic stability.
• Industry Performance and Tax Revenue : The correlation between industry performance and tax-to-GDP highlights the importance of supporting industrial growth through favorable tax policies. Encouraging industry value-added can boost tax revenues and overall economic health.

After the presentations, there was a panel discussion on Efficient tax policy and tax administration for inclusive and sustainable development

This panel discussion session was moderated by Dr. John Karangwa (RRA), and the panelists were : Mr. Abel Ntegano (MINECOFIN, Mr. Denis Mukama (RRA), Dr. Mbakiso Magwape (ICTD) and Dr. Pula Gabor (IMF).

Key highlights from the discussion under this panel are the following :

Conclusions

• High coherence in certain periods indicates strong alignment between tax policies and economic indicators, highlighting the effectiveness of those policies.
• Periods of low coherence suggest areas where policy improvements are needed.
• The wavelet analysis provides valuable insights into the dynamic relationships between tax policies and economic performance, offering a nuanced understanding that can inform future policy decisions.
• Policymakers should focus on replicating successful strategies and refining tax policies to ensure sustained economic growth. Enhancing coordination between tax policies and key economic variables is essential for achieving long-term fiscal stability and growth.

3.2.3. 3rd Session : Policy options to enhance human capital development in Rwanda

The 6th presentation was delivered by Mr. Emmanuel Munyemana (UNICEF) and was on investment in Children development and Learning in Rwanda : Evidence from the ECD Investment case.

Key Points
• Generous Demographic Dividend with a significant proportion (15%) of Rwanda’s population is under the age of 6. There is High Return on Investment : Investing in ECD yields high returns and mitigates the high costs associated with not investing in early years.
• Benefits of Investing in ECD :
oImproved Nutrition Outcomes : Enhanced maternal health and nutrition lead to better developmental outcomes for children.
oReduction in Primary School Repetition Rates : Investment in ECD contributes to a decrease in the repetition rates in primary schools.

• There is need to unlock finances for ECD : Align sector-specific costed implementation plans with ECD priorities to ensure adequate funding and resource allocation.

Implications
• Economic and Social Benefits : Investing in ECD results in substantial economic benefits, significantly outweighing the costs. Improved health and education outcomes lead to a more productive and healthier population in the long term.
• Policy and Implementation : Strong policies and frameworks are essential for the successful implementation of ECD programs. Aligning ECD priorities with sector-specific plans ensures cohesive and effective use of resources.
• Future Preparedness : Investing in ECD prepares Rwanda’s young population for future educational and economic challenges. Early investments in children’s development lay the foundation for a skilled and capable workforce.

Conclusions
• High Returns on ECD Investments : The cost-benefit analysis clearly shows that investing in ECD is highly beneficial, with significant returns on investment in terms of economic and social outcomes.
• Strategic Implementation : Effective implementation of ECD policies and alignment with national priorities are crucial for maximizing the benefits of investments.
• Long-Term Impact : The long-term impact of investing in ECD includes improved educational outcomes, reduced repetition rates in schools, and better overall health and productivity of the population.
• Necessity of Adequate Funding : Unlocking and ensuring adequate funding for ECD initiatives is essential to sustain and expand these benefits, ultimately contributing to national development goals.

The 7th presentation was delivered by Mr. Philbert Kamara (REB) and was on education and Internet & Digital connectivity in schools.

Key Points

• Rwanda has implemented several policies and guidelines to enhance ICT in education, including the National Strategy for Transformation, the Rwandan Education Sector Policy, the Education Sector Strategic Plan, the ICT in Education Policy, and the draft Rwanda EdTech Policy.
• Administration of IT Ecosystem for Schools : The administration of IT ecosystems in schools involves managing various systems, ensuring interoperability, and maintaining connectivity infrastructure.
• Connectivity : REB (Rwanda Education Board) : Oversees the implementation of ICT initiatives in schools.
• Schools Access to Internet : Connectivity projects aim to connect schools to the internet, including those in remote areas.
• Corporate IT Infrastructure : Supports the connectivity and IT needs of schools through various ongoing and planned projects.
• Devices : Schools are equipped with digital devices such as laptops, digital smartboards, screens, and projectors to create smart classrooms.
• eLearning and MIS (REB) : The Rwanda Education Board (REB) manages eLearning platforms and Management Information Systems (MIS) to support digital learning and administrative processes in schools.
• IT Systems Interoperability : Ensuring that different IT systems used in schools can work together seamlessly to provide a cohesive digital learning environment.
• LMS and Support System : Core LMS and Support System : Learning Management Systems (LMS) and support systems are integral to managing and delivering eLearning content effectively.
• Smart Classroom : Smart classrooms utilize digital equipment and internet connectivity to enhance teaching and learning experiences. They enable interactive and engaging learning environments.
• Robotics and AI : REB is incorporating robotics and AI into schools to provide educational benefits and prepare students for the future job market.
• Interactive Learning : Robotics kits and AI tools offer hands-on learning opportunities.
• Problem-Solving Skills : Encourages critical thinking and creative problem-solving.
• Collaboration : Fosters teamwork and communication through group projects.
• Job Market Readiness : Familiarity with robotics and AI provides a competitive edge.
• STEM Engagement : Sparks interest in STEM fields, leading students to pursue careers in these areas.

Implications
• Enhanced Educational Outcomes : Policies and guidelines are creating a structured approach to integrating ICT in education, leading to improved learning outcomes. Access to digital devices and internet connectivity is making education more accessible and interactive, particularly in remote areas.
• Improved Learning Environment : Smart classrooms and eLearning platforms create engaging and effective learning environments. The use of digital tools and resources enhances the teaching and learning process, making it more interactive and student-centered.
• Future Job Market Preparation : Incorporating robotics and AI into the curriculum prepares students for future job markets where these technologies are prevalent. Engaging students in STEM fields early on helps build a skilled workforce ready to meet future technological demands.

Conclusions
• The strategic integration of ICT in education through well-defined policies and projects is transforming Rwanda’s education sector. Continuous investment in infrastructure and technology is essential to sustain this progress.
• The use of smart classrooms, eLearning platforms, and innovative technologies like robotics and AI is significantly improving the quality of education. Students are more engaged, better prepared for the future, and have greater access to educational resources.
• Efforts to connect remote schools and provide digital resources highlight a commitment to inclusive education.

The 8th presentation was delivered by Louis HAVUGIYAREMYE and was on educational policies and Reforms on human capital development in Rwanda

Key Points
• Increased connectivity and e-learning platforms improve access to education, especially in remote areas. Enhanced infrastructure supports better learning environments and reduces educational disparities.
• Enhanced Learning Experience : Smart classrooms and digital tools make learning more interactive and engaging. Robotics and AI provide hands-on learning experiences, fostering critical thinking and problem-solving skills.
• Future Job Market Preparation : Exposure to technology, robotics, and AI prepares students for future job markets, giving them a competitive edge. Encourages students to pursue STEM careers, addressing skill gaps in these fields.
• Challenges and Considerations : Ensuring consistent and reliable internet connectivity across all schools. Providing adequate training for teachers to effectively use digital tools and e-learning platforms.

Conclusions
• The integration of ICT in education through various policies and projects is strategically transforming Rwanda’s education sector. Continuous investment in infrastructure and technology is essential for sustaining this progress.
• The use of e-learning platforms, smart classrooms, and innovative technologies like robotics and AI is significantly improving the quality of education. Students are more engaged, better prepared for the future, and have greater access to educational resources.
• Efforts to connect remote schools and provide digital resources highlight a commitment to inclusive education. Addressing challenges related to digital access and teacher training will be crucial for achieving equitable educational outcomes. LICs should focus on strengthening the enforcement of existing tax laws rather than introducing new taxes. Legal and policy frameworks must be updated to facilitate better data sharing and enforcement.
• Revenue Mobilization : Enhancing tax compliance among wealthy individuals can significantly boost domestic revenue mobilization. Investments in tax administration and technology are essential for long-term improvements.
• Equity and Fairness : Ensuring that wealthy individuals pay their fair share of taxes will improve the equity of the tax system. Reducing the tax burden on small firms and consumers by targeting wealthier taxpayers can promote fairness.
• Political Will and Public Support : Building political will and public support for tax reforms is crucial for successful implementation. Engaging with civil society and conducting education campaigns can help foster a culture of compliance and support for tax reforms.

By focusing on these areas, LICs can improve their domestic revenue mobilization efforts and address the challenges of wealth inequality and inadequate public finances.

After the presentations, there was a panel discussion on Enhancing human capital development in Rwanda, challenges and opportunities

This panel discussion session was moderated by Mr. Marcel Sibomana (SCI), and he panelists were : Mr. Emmanuel Munyemana (UNICEF), Prof. Herman Musahara (EPRN), Mr. Philibert Kamara (REB) and Dr. Joseph Nkurunziza (UR).

Key highlights from the panel discussions

a. Quality of Education :
• Despite increased access to education, the quality remains a significant concern. There is a need for improved teacher training, better learning materials, and more effective curriculum implementation.
• The disparity between urban and rural education quality poses a challenge to equitable human capital development.

b. Skills Mismatch :
• There is a disconnect between the skills taught in educational institutions and the skills demanded by the labor market.
• This mismatch leads to high unemployment rates among graduates and a shortage of skilled labor in critical sectors.

c. Funding and Resources :
• Limited funding for education and training programs hinders the development of necessary infrastructure and resources.
• There is a need for increased investment from both the government and private sector.

d. Early Childhood Development :
• Early childhood education is crucial for laying the foundation for future learning. However, this area is often underfunded and lacks comprehensive programs to support children’s early development.

e. Health and Nutrition :
• Health and nutrition are essential components of human capital development.
• Poor health and malnutrition can severely impact a child’s cognitive development and ability to learn.

Opportunities
a. Policy Reforms and Investment :
• The government can play a pivotal role by implementing policy reforms that prioritize quality education and skills development. Increased investment in the education sector is essential.

b. Public-Private Partnerships :
• Collaboration between the public and private sectors can lead to innovative solutions for education and training.
• Private companies can offer internships, apprenticeships, and on-the-job training to bridge the skills gap.

c. Technology Integration :
• Leveraging technology in education can enhance learning outcomes and provide students with relevant skills.
• E-learning platforms, digital classrooms, and online resources can help overcome geographical and resource limitations.

d. Community Involvement :
• Engaging communities in education initiatives can improve school attendance and performance.
• Community involvement ensures that educational programs are tailored to the local context and needs.

e. Focus on Vocational Training :
• Expanding vocational and technical training programs can equip students with practical skills that are directly applicable in the job market.
• This approach can reduce unemployment and meet the demand for skilled labor.

The panel emphasized the importance of a holistic approach to human capital development, addressing not only education but also health, nutrition, and socio-economic factors. By tackling these challenges and leveraging the available opportunities, Rwanda can make significant strides in developing its human capital and driving sustainable economic growth.

3.2.4. 4th Session : Building more resilient agricultural systems

This session was opened by Dr. Moumini Savadogo, Managing Director of the AKADEMIYA2063, in his remarks, he shared briefly on Akademiya 2063 as follows :

• Objectives and Initiatives of Akademiya 2063 are to promoting sustainable agricultural development and focuses on fostering sustainable agricultural development in Africa. The institution aims to support agricultural transformation through evidence-based research, policy analysis, and capacity building.
• One of her key initiatives is to improve data collection and analysis to inform agricultural policies and programs in Africa. The organization works on developing robust data systems and analytical tools to track agricultural performance and identify areas for improvement.
• Akademiya 2063 is committed to building the capacity of African researchers, policymakers, and institutions. The organization offers training programs, workshops, and collaborative research opportunities to enhance skills and knowledge in agricultural development.
• The institution engages in policy advocacy to promote agricultural policies that are inclusive, sustainable, and resilient. Akademiya 2063 works with governments, regional bodies, and international organizations to influence policy decisions and implementation.
• Akademiya 2063 emphasizes the importance of collaboration and partnerships to achieve its goals. The organization partners with academic institutions, research organizations, and development agencies to leverage expertise and resources for agricultural development.

He further highlighted the following focusing on the Malabo Montpellier Panel’s report

• Climate-Smart Agriculture (CSA) : emphasized need for adopting CSA practices to enhance resilience against climate change. These practices include conservation agriculture, integrated pest management, and agroforestry. CSA helps improve productivity, adapt to changing climatic conditions, and reduce greenhouse gas emissions.
• Improving Soil Health : Ensuring soil health is critical for agricultural resilience. Use of organic fertilizers, crop rotation, and cover crops are recommended to maintain soil fertility and structure. Healthy soils enhance water retention, reduce erosion, and increase crop yields.
• Water Management : Efficient water management practices are necessary to address water scarcity and variability. We should advocate for the adoption of drip irrigation, rainwater harvesting, and the development of small-scale irrigation schemes. These methods help optimize water use and ensure crops receive adequate moisture.
• Diversification of Crops and Livelihoods : Diversifying crops and livelihoods can reduce vulnerability to climate and market shocks. Promoting the cultivation of drought-resistant crops and encouraging farmers to engage in non-farm activities, such as agro-processing and handicrafts, to provide additional income sources is emphasized.
• Access to Finance and Insurance : Access to financial services, including credit and insurance, is essential for building resilience. The report highlights the importance of developing agricultural insurance schemes to protect farmers against losses due to extreme weather events. Additionally, providing affordable credit can help farmers invest in resilient technologies and practices.
• Strengthening Extension Services : Extension services play a vital role in disseminating knowledge and technologies to farmers. Enhancing the capacity of extension workers through training and the use of digital tools to provide timely and accurate information to farmers are recommended.
• Research and Development (R&D) : Investing in R&D is crucial for developing innovative solutions to emerging challenges. Calls for increased funding for agricultural research institutions to develop new crop varieties, pest control methods, and sustainable farming practices that can withstand climate change impacts is key.
• Policy and Institutional Support : Effective policies and institutions are necessary to support resilient agricultural systems. Governments are advised to create enabling environments through policies that promote CSA, provide subsidies for resilient inputs, and support market access for farmers.

After the opening remarks, there was three presentations and a panel discussion.

The 9th presentation was delivered by Mrs. Aisha Musaazi Nakitto (AKADEMIYA2063) and was on YOUTH AHEAD : Policy Innovations to Create Opportunities for Young People in Africa’s Agrifood Systems.

Key Points

• Africa has the world’s youngest population, with significant youth unemployment challenges.
• Agrifood systems offer substantial potential for youth employment due to urbanization and increasing demand for processed foods.
• Challenges Faced by Youth include high unemployment rates despite millions entering the job market annually and barriers include limited of access to modern tools, finance, infrastructure, and training in digital and business skills.

Solutions and Opportunities
• Agrifood sectors are recognized as promising areas for youth employment.
• Opportunities exist in harvest, postharvest, processing, and trade, but youth participation remains low in food processing.
• Integrating modern and sustainable agricultural techniques and skills training for youth.

Experience from 4 African Countries
• Ghana, Uganda, Zambia, and Zimbabwe highlighted for their policies and programs promoting youth empowerment in agrifood systems.
• Initiatives include youth employment agencies, innovation hubs, skills development funds, and economic empowerment policies.

Key Insights
• Enhance market access for youth in agrifood sectors.
• Integrate modern agricultural techniques and climate-smart practices into education curricula.
• Invest in rural infrastructure development to support agrifood entrepreneurship.

Implications
• Policy Implications : Emphasizes the need for supportive policies that facilitate youth engagement and innovation in agrifood systems.
• Economic Implications : Highlighted potential economic benefits from increased youth participation in agrifood value chains.
• Social Implications : Addresses social challenges such as rural-urban migration and the role of education in preparing youth for agrifood careers.

Conclusion
The targeted policy interventions and investments in education and infrastructure are crucial to harnessing Africa’s demographic dividend and addressing youth unemployment through agrifood systems.

The 10th presentation was delivered by Mr. Didas Uwamahoro (EPRN) and was on Sustainable Approaches for Food Security and Economic Growth – Seasonality effects for Maize and Soybean Farming.

Key Points
• Agriculture in Rwanda is crucial, contributing significantly to GDP and employment.
• Maize and soybean are pivotal crops, but productivity levels are below their potential.
• The objectives of the paper are to analyze agricultural practices to increase maize and soybean productivity by 500 kg per hectare by 2025 ; evaluate current and recommended agricultural practices and their impact ; and assess the viability of agricultural investments in improving productivity.
Findings and Discussions
• Current productivity of maize and soybean is low compared to their potential.
• Challenges include mixed cropping practices, low irrigation usage, and moderate fertilizer application.
• Optimal practices such as pure cropping significantly increase productivity.

Implications
• High dependence on imports due to low domestic production affects food security.
• Investment in agricultural practices can lead to economic benefits and reduce import bills.

Conclusion

Good agricultural practices are essential for increasing maize and soybean productivity, benefiting smallholder farmers and reducing import dependency.

Insights
• Strengthen extension services to educate farmers on optimal agricultural practices.
• Foster collaboration among stakeholders to improve infrastructure and access to agricultural inputs.
• Encourage investments in agriculture based on profitability models presented in the study.

Overall Impact
The study underscores the potential for sustainable agricultural practices to enhance food security, reduce imports, and boost economic growth in Rwanda, particularly focusing on maize and soybean production.

The 11th presentation was delivered by Mrs. Gilberthe Benimana (IFPRI) and was on enhancing Agricultural Development through Farm Typologies : A Targeted Intervention Framework for Rwandan Food Systems.

Key Points
The objectives of the study included to (i) determine important characteristics of farmers and key traits of different farmer groups ; to define realistic farmer commercialization categories ; and to identify how these typologies respond to policy interventions and which policies benefit each farm type.

The purposes of the study were to tailor policies and interventions to match diverse characteristics, needs, and behaviors of different types of farms ; and to enable targeted assistance and effective use of resources. The methodological was to Factor-cluster analysis categorizing socio-economic factors into four domains : social/human, productivity, economic, and environmental and the combined hierarchical and non-hierarchical clustering to group similar observations.

Typology Results
• Key socio-economic factors were identified and grouped into four domains.
• Distribution across five farm types with varying characteristics and levels of commercialization.

Implications
• Need for tailored policies to address specific needs of different farm types, enhancing effectiveness and efficiency in resource allocation.
• Importance of integrating advanced technologies and sustainable practices in policy frameworks.
• Promoting high-value crop production and integrated farming systems can significantly improve the economic returns for farmers, particularly smallholders.
• Support for commercialization and diversification is crucial for increasing farm profitability and resilience.
• Empowering women and marginalized groups through targeted interventions can enhance social equity and collective bargaining power.
• Encouraging sustainable practices and environmental stewardship can mitigate climate change impacts and promote long-term agricultural sustainability.
• Investment in agripreneurship and innovation hubs can foster entrepreneurial spirit and drive agricultural transformation.

Conclusions
• The study highlights the diverse characteristics and needs of Rwandan farmers, emphasizing the importance of tailored interventions.
• By classifying farmers into distinct typologies, policymakers and stakeholders can design more effective programs that address specific challenges and opportunities.
• The recommendations provided aim to enhance agricultural productivity, profitability, and sustainability, ultimately contributing to the development of resilient food systems in Rwanda.
• Continued support for technological adoption, market access, and financial services is crucial for advancing agricultural development and improving livelihoods.

General Recommendations included :
• Promote labor-intensive crop production, integrated farming systems, and access to finance.
• Enhance access to land leasing, market linkages, and agri-preneurship.
• Support women-centered cooperatives, community-supported agriculture, and inclusive training.
• Invest in advanced technologies, financial resources, market development, and environmental stewardship.

After the presentations, there was a panel discussion on Policy Options to Enhance Food and Nutrition Security in Africa

This panel discussion session was moderated by Mr. Seth Kwizera (EPRN), and the panelists were : Mr. Egide Mutabazi (MINAGRI), Dr. James Warner (IFPRI) and Mr. Felix Havugiyaremye (MINICOM).

Key highlights from the discussion under this panel are the following :
a. Strengthening Agricultural Productivity
• Investment in Research and Development : Increase funding for agricultural research to develop high-yield, drought-resistant crops and improve farming techniques.
• Extension Services : Enhance agricultural extension services to disseminate new farming practices and technologies to farmers.
• Access to Inputs : Improve farmers’ access to quality seeds, fertilizers, and pest control measures.

b. Market Access and Infrastructure
• Improving Rural Infrastructure : Invest in rural roads, storage facilities, and market infrastructure to reduce post-harvest losses and improve market access.
• Market Information Systems : Establish reliable market information systems to help farmers make informed decisions on when and where to sell their produce.
• Trade Policies : Develop favorable trade policies to encourage regional trade and reduce barriers to cross-border trade of agricultural products.

c. Financial Inclusion and Support
• Credit Facilities : Enhance access to credit for smallholder farmers to invest in improved farming techniques and technologies.
• Insurance Schemes : Develop and promote agricultural insurance schemes to protect farmers from risks such as crop failure and extreme weather events.

d. Climate-Smart Agriculture
• Sustainable Practices : Promote sustainable agricultural practices that enhance resilience to climate change, such as conservation agriculture, agroforestry, and water management.
• Renewable Energy : Encourage the use of renewable energy sources in farming activities to reduce dependence on fossil fuels and mitigate climate change impacts.

e. Nutrition-Sensitive Agriculture
• Diversification : Promote crop diversification to ensure a variety of nutritious foods are available.
• Biofortification : Support the development and distribution of biofortified crops that are rich in essential nutrients.
• Education : Implement nutrition education programs to raise awareness about the importance of a balanced diet.

f. Policy and Institutional Frameworks
• Coherent Policies : Develop coherent agricultural policies that align with broader economic and social development goals.
• Institutional Capacity Building : Strengthen the capacities of institutions involved in agriculture and food security to effectively implement policies and programs.
• Monitoring and Evaluation : Establish robust monitoring and evaluation frameworks to track the progress and impact of food security initiatives.

These strategies can collectively contribute to enhancing food and nutrition security across Africa, ensuring sustainable agricultural development and improved livelihoods for the population.

4. Conference Recommendations

Based on presentations and brainstorming sessions, participants in the conference came up with the following key recommendations ; and tasked EPRN to make a follow-up to know where each recommendation belongs to, and send them formally to the concerned institutions :

Recommendation 1. Leveraging Public Private Partnerships (PPPs) - increasing private sector investment through innovative financing mechanisms, such as green bonds and climate funds, can help bridge funding gaps and ensure sustainable financing.

Recommendation 2. Developing and adopting Innovative Financing Mechanisms for instance carbon credit. There is a need for enhanced coordination among various sources of finance to maximize impact and avoid duplication.

Recommendation 3. To enhance internal resource mobilisation, RRA should invest more in sensitisation, education, and communication campaigns and engage broadly with civil society actors and associational bodies to promote a culture of compliance

Recommendation 4. Engender tax administration by adopting best practices (statistics and data collection)

Recommendation 5. Protect and increase budget allocation for Early Child Development (ECD Program)

Recommendation 6. Artificial Intelligence (AI) should be considered as an opportunity rather than a threat to job creation. Digitalization helps creating new jobs and each actor should play role to ensure development of infrastructure and skills to benefit from AI

Recommendation 7. The Government to keep what has been started of allocating more funds to support research and development at university level

Recommendation 8. There is need to enhance both academic and professional internship program by extending time it takes and ensuring students are given chance to learn hands on skills which will help them on labor market. Industry/PSF has to be involved in harmonizing this programme for more effectiveness

Recommendation 9. Environmental Stewardship Incentives : Offer incentives for adopting environmentally friendly practices, such as organic farming methods, conservation tillage, and renewable energy integration. These incentives could take the form of subsidies, tax credits, or certification programs recognizing sustainable production methods.

Recommendation 10. Need of more PPP to enhance and upscale small holder farmers’ capacities on accessing small-scale irrigation technology
Design and implement dedicated processes to include youth in policy- and decision-making

Recommendation 12. More sensitizations of the PSF about the AfCFTA and make it an engine for deepening Eastern African economic integration, increasing productivity, and creating more jobs

Recommendation 13. Integrating modern and sustainable agricultural techniques and skills training into formal education curricula.

5. Closing remarks

Mrs. Chantal Ingabire, the Director General of Planning, Monitoring, and Evaluation at MINAGRI, representing the Honorable Minister of Agriculture, delivered the closing remarks at the 10th Annual Research Conference of the Economic Policy Research Network (EPRN) in Kigali, Rwanda. Her remarks highlighted the following key points :

• She acknowledged the valuable contributions of all participants, including researchers, policymakers, and stakeholders, in addressing critical issues related to economic development and food security.
• She emphasized the importance of continuous research and collaboration among different sectors to tackle the challenges faced by the agricultural sector and to enhance food security in Rwanda and the broader region.
• She highlighted the Rwandan government’s commitment to supporting agricultural development and integrating research findings into policy and practice was reaffirmed. She highlighted ongoing and future initiatives aimed at improving agricultural productivity and sustainability.
• She encouraged ongoing engagement and collaboration between the government, academia, and private sector to ensure that research findings translate into actionable policies and programs that benefit the entire population.
• She expressed gratitude to EPRN for organizing the conference and providing a platform for knowledge exchange and policy dialogue. She also thanked the participants for their active involvement and contributions.

The closing remarks underscored the critical role of evidence-based research in shaping effective agricultural policies and the need for sustained efforts to achieve food security and economic resilience.

ANNEX 1 : CONFERENCE AGENDA

ANNEX 2 : BIOGRAPHIES OF SPEAKERS