The performance of the IFAD-funded project portfolio in Rwanda has improved significantly since the country programme evaluation of 2005, especially with regard to effectiveness and efficiency, and impact on household incomes and food security. A key contributing factor has been the stronger policy and institutional environment the country has built up over the past decade. IFAD for its part has improved the alignment of its interventions with national strategies and has introduced direct supervision and implementation support together with a country presence.

While IFAD’s cooperation with Rwanda has been solid at the project level, less resources have been devoted to non-lending activities (forging partnerships, policy dialogue and knowledge management). The key programme challenges (rural finance, cooperative development, support to local governments) are however of a systemic nature and therefore cannot be adequately addressed by project components alone. The Government’s move towards further harmonization of international cooperation calls for adapting to a more coordinated approach to cooperation, whereby IFAD would place adequate emphasis on non-lending activities and higher-level institutional issues.