Review of Progress of the Economic Cluster-Mini Budget 2009 BY - PDF document

Review of Progress of the Economic Cluster-Mini Budget 2009 BY Andre HABIMANA Coordinator Development Planning 1 MINISTRY OF FINANCE AND ECONOMIC PLANNING Presentation Outline 1. Composition of Economic Cluster 2. Basis for Performance Evaluation 3. EDPRS Strategic Outcome Performance Review of: – Enhanced Business Climate – Economic Infrastructure Built – Increased Agricultural Productivity – Optimal utilisation of Natural Resources 4. Challenges and Solutions to address them 5. Overall Assessment of the Economic Cluster 6. Cross Cutting Issues 7. Lessons learnt 2 1

Economic Cluster (Sector Actors) Cluster Actors MACRO AND ENV, LAND PRIVATE AND WATER FINANCIAL INFRASTRUCTURE AGRICULTURE SECTOR RESOURCES SECTOR 3 Joint Sector Reviews: Basis for Measuring Performance Indicators/Targets Total Policy Actions The CPAF quantitative indicators 28 were not assessed during the mini budget Joint sector reviews Traffic Light System used for Performance Measurement: Green Fully met Not met but with significant progress Yellow Red Underperformed or not met This presentation is based on the outcome of JSR and Summary of Sector Performance Reports that have been agreed both by the Government and Development Partners 4 2

EDPRS Strategic Outcome: Enhanced Business Climate Indicators Target for Actual Public Policy Action 2009 Jan-June Actual Overall 2009 Jan- June Credit to private 12.2 Operationalize MF credit fund MF credit fund Financial sector (as % of operational sector: 3 GDP) policy Complete a feasibility study of The option of rural micro actions, 2 establishing a rural micro- insurance products was fully met and insurance company developed with existing 1 partially insurance companies and met tested(MINAGRI and SONARWA on tomato growing farmers) Adopt appropriate legal and Laws passed on security regulatory framework for interest & secured national payment systems , transactions. A number credit bureau and secured of laws in the process to transactions be gazetted Index on 56% Operationalize Commercial Commercial Registration business Registration Agency Agency (RCRSA) environment operational Effectively apply all modules of All borders connected to Asycuda and reinforce Asycuda ++ network valuation unit in customs except Rutete 5 EDPRS Strategic Outcome: Enhanced Business Climate Indicators Target for Actual Public Policy Action 2009 Jan-June Actual Overall 2009 Jan- June Score of Investor 60% Implementation of the “quick Reform was Private Perceptions of baseline wins reform” implemented sector: 5 regulatory establishe Policy issues, licensing d targets; all Review all licenses, simplify and All the licenses burden, fully met streamline the most reviewed and corruption and cumbersome ones to reduce identified for dispute time and procedures taken to streamlining resolution issue licenses Conduct baseline survey on The survey was investor perception completed 6 3

Challenges and Solutions to address them: Financial Sector Challenges: Solutions: • Stimulating economic recovery by • To improve the liquidity in the improving liquidity in the banking banking system; GoR has reduced system required reserve ratio from 8% to • Low savings and low utilization of 5%, introduced medium and long financial institutions (low financial term refinancing literacy) • Umurenge SACCO policy has been • Payment systems reforms that are introduced to increase the levels of not moving fast enough saving and utilization of financial institutions • Strengthening the mechanisms for payment systems 7 Challenges and Solutions to address them: Private sector Challenges: Solutions: • Support to RDB in improving • Improving investment statistics investment statistics • Low budget execution in respect • Capacity building support to to recurrent budget due to low MINICOM in a coordinated manner staff retention and difficulty hiring qualified staff 8 4

EDPRS Strategic Outcome: Economic Infrastructure Built (Energy Sub-Sector) Indicators Target Actual Public Policy Action 2009 Jan- Actual Overall for 2009 June Jan-June 135,000 Number of 139,000 Choose technico-economic Least cost All policy electricity technology for rural distribution targets subscriptions electrification (Electrogaz and technology chosen fully met Mininfra) Project Management PMD has been Directorate for implementation designed and the of the national electricity structure Rollout program established in approved Electrogaz and operational MW of 80 MW Diversify energy sources 2 MW of methane online, 20MW electricity (methane gas, hydro power & heavy fuel installed solar commission 20 MW,Heavy commissioned Fuel Oil Power Plant) Sign contract between Mininfra Contract signed and at least 1 IPPs for with Contour generation of electricity Global in March 2009 9 Challenges and Solutions to address them Challenges: Solutions: • Technical and commercial losses are • Rehabilitation, extension and still important intensification of the electricity grid • Scaling up power production to meet • Develop renewable energies and increasing demand invest in energy efficiency measures • Development of renewable energy • Completion of the ongoing Hydro and power stations • Investment in energy efficiency • Projects in solar, wind, geothermal measures and hydro • The capacity of the energy staff • Funding 10 5

EDPRS Strategic Outcome: Economic Infrastructure Built (Transport Sub- Sector) Indicators Target Actual Public Policy Action 2009 Jan-June Actual Overall for 2009 Jan-June Percentage of 19% Commence and complete 48 km 6 policy classified Rehabilitation of at least 20 km of the rehabilitated targets, 3 271 of paved roads National Road fully met, network in 1 Complete periodic maintenance of at 127 km good condition partially least 120 km (cum) of the 780 km of completed the national Earth roads met and 2 not Establish Axle Load Control System for The roadmap to met 50% of the national paved road establish the Axle network load control system is in place; Commencement of Transport master Firm has been plan study. selected to commence the study Cabinet adoption of road sector The Transport reform package covering an reform package autonomous road agency as part of was adopted by proposed Transport Board and Road the Cabinet. 11 Act Cont’d EDPRS Strategic Outcome: Economic Infrastructure Built (Transport Sub- Sector) Indicators Target Actual Public Policy Action 2009 Jan- Actual Overall for 2009 June Jan-June Percentage of 28% Districts sign multi-annual (3 Only 1 classified District years) output and performance contract Road network in based road contracts (OPBRC’s) signed good condition with at least 1 more contractor 12 6

Challenges and Solutions to address them Challenges: Solutions: • Poor condition of rural road network • Increasing capacity in planning for transport infrastructure development at • Co-financing required for major road local government level projects • Planning and reporting systems on • Low capacities of districts in planning transport works at district levels need to and monitoring of transport project be urgently developed • Dialogue in the transport SWG • Reinforce the Transport SWG organization and align Donor Mission schedules with the joint Sector review 13 EDPRS Strategic Outcome: Increased Agricultural Productivity Indicators Target Actual Public Policy Action 2009 Jan- Actual Overall for 2009 June Jan-June Proportion of 50% Feasibility studies for an additional Fully met 7 policy arable land 14 sites identified under the LWH for targets, sustainably sustainable land and watershed 4 fully met, managed against management are tendered, 3 partially soil erosion contracted and initiated by met MINAGRI. Publish Land consolidation Decree drafted ministerial decree. and shared with stakeholders Develop an action plan for private Mineral Fertilizer 30,800 Draft action plan sector-led fertilizer distribution based used (MT) developed, yet on key lessons from 2009A. to be validated This is endorsed by the Ministry and shared with rural cluster Extend fertilizer demonstration plot Implemented in program to include at least 1 per sector all sectors in rural areas 14 7