CDAT project fuels smallholder farmers’ growth into agribusiness investors

For years, farmers like Philomene Mukamusoni relied on unpredictable rainfall. This, sometimes, threatened their yields and livelihoods. Today, backed by a co-investment model under a major initiative, they are transitioning into agribusiness players—investing millions, securing markets, and building climate-resilient enterprises. An Irish potato seed multiplier, Mukamusoni struggled with weather fluctuations that disrupted her production. She is engaged in Irish potato farming using an innovative method known as sandponic cultivation – a farming method where crops are grown in sand instead of soil, with nutrients supplied through a controlled water solution. Her primary activity involves the multiplication of Irish potato seeds, starting from mini-tubers. This production method allows her to generate high-quality seed potatoes in a controlled environment, significantly improving yield and disease resistance. ALSO READ: Terraces of hope: How a $300m project is reshaping Rwanda’s hills, rural economy Determined to scale her venture, she applied for a matching grant under Commercialization and De-Risking for Agricultural Transformation (CDAT) and secured the financing. Through the project support, she received assistance in constructing a screenhouse, which plays a crucial role in her production system – which shields production from climate shocks and stabilises output. Her project is valued at more than Rwf203 million, with CDAT contributing Rwf70 million, while the remaining amount (Rwf133 million) came from other avenues including her own cash—positioning her as a co-investor in a commercial enterprise. The investment is already paying off. Mukamusoni has secured a reliable market for her seed potatoes, while demand continues to outstrip supply, signalling strong growth potential. This co-investment model is central to CDAT, a $300 million World Bank-funded initiative implemented by Rwanda Agriculture and Animal Resources Development Board and the Development Bank of Rwanda to boost agricultural productivity and commercialisation. The project runs from 2022 through 2027. Through matching grants, the project invites farmers, cooperatives, and agripreneurs to submit bankable business plans and co-finance their ventures. ALSO READ: Farmers to access cheap loans under $300m agric project According to Jean Hitimana, disbursements are phased—typically at 50 per cent, 90 per cent, or 100 per cent—based on compliance, progress, and operational readiness. He noted that the first call for applications in June 2023 attracted more than 109,000 submissions, with funding requests exceeding Rwf740 billion—far beyond available resources. “As of December 2025, 129 projects had received disbursements totaling over Rwf3.2 billion under the first phase alone,” he said. Livestock leads the investments. “Cattle farming accounts for 63 funded projects and over Rwf1.59 billion in disbursements, while poultry, piggery, and greenhouse horticulture are also expanding,” Hitimana said. By the end of 2025, dairy projects had produced over 204,000 litres of milk, generating Rwf83 million. Poultry farms delivered more than 1.7 million eggs worth Rwf252 million, while piggery projects generated over Rwf104 million. “Overall, these projects have generated more than Rwfw2 billion in revenue,” he said. He attributed the results to strong farmer ownership and a stringent selection process focused on viable, scalable, and co-financed projects. “We have to ensure that every franc invested delivers impact. Therefore, we select projects that are both technically sound but also financially committed,” he said. At Dukunde Kawa Musasa Cooperative in Gakenke District, members expanded into cattle farming, boosting milk production and leading to the establishment of a milk collection centre. Ernest Nshimiyimana said CDAT provided Rwf100 million, matched by the cooperative. “We constructed a facility, purchased a truck with a capacity of 5,000 litres, installed a cold room capable of storing 3,000 litres, and acquired milk cans that can collect up to 5,000 litres per day,” he said. Driving employment and rural growth while curbing post-harvest losses Beyond revenue, the programme is contributing to job creation and rural economic transformation, with more than 2,900 jobs created so far, including 951 permanent positions. “Agriculture should no longer be about feeding families, instead become a source of structured income and economic growth,” Hitimana said. A similar trend is evident in Mugesera Sector, Ngoma District, where members of the KOABANAMU cooperative consolidated over 500 hectares to grow pineapples. Despite increased production, post-harvest losses persisted due to limited market access. “Our produce used to go to waste because we could not reach markets on time,” said Alexis Muzerwa. “We needed a truck, and it was worth Rwf70 million. We applied for a matching grant and CDAT contributed Rwf25 million, and today we transport our pineapples to Inyange factory and receive better prices.” He said the transport solution enabled access to wider markets and triggered broader economic gains. “The matching grant came with triple benefits. Farmers have improved their homes using income from better prices, some have bought motorcycles. We are even receiving new members who were previously discouraged by post-harvest losses, which are no longer an issue,” Muzerwa added. Beneficiaries are also operating under formal buyer contracts, reducing uncertainty and stabilising incomes. “Contracts are critical because they guarantee markets and allow farmers to plan production with confidence, at least 57 beneficiaries have been facilitated,” Hitimana added. The second phase of the initiative is focusing on post-harvest handling—long identified as a weak link in Rwanda’s agricultural value chains. “Production without proper storage and handling leads to losses. That is why the second call is targeting infrastructure like warehouses and aggregation centers,” Hitimana explained. Out of 167 applications in the second call, 74 projects were conditionally approved, but only 31 have progressed to contract signing. Some applicants face challenges meeting requirements such as land ownership, environmental compliance, or raising their contribution. So far, about Rwf243 million has been disbursed under this window, supporting investments expected to reduce losses and improve price stability.

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CDAT project fuels smallholder farmers’ growth into agribusiness investors