Community-enterprise relations in the agribusiness sector in Rwanda: Assessing Corporate Social Responsibility as a development approach

Abstract

In the context of Private Sector Development (PSD) promotion policies and agricultural transformation, foreign enterprises are establishing their businesses in the Rwandan agribusiness sector. This research project intends to analyze how PSD is effectively put in practice particularly regarding the perceptions of three key actors: government, foreign entrepreneurs, and local communities. Secondly, it aims to provide an evidence-based assessment of community- foreign enterprise relations in three areas of rural Rwanda, and to analyze how through Corporate Social Responsibility (CSR) approaches these enterprises are contributing to local development. The findings collected suggest that foreign private sector participation in agribusiness is only starting to grow, and that although governmental policies do create attractive investment opportunities these still face challenges when executed, especially in terms of agro-infrastructure and financial services for entrepreneurs. Additionally, CSR approaches are encouraged in these policies, but are not mandatory thus taking place in an ad-hoc manner. The interviewed foreign entrepreneurs are implementing a business-oriented CSR approach favoring job creation and skills training as their main contribution to the livelihoods of local employees. Broader community investment projects in infrastructure and education did not take place in most of the agribusinesses reviewed. In terms of their own development, local employees valued the employment opportunities and fixed salaries delivered by these enterprises and definitely mentioned them as positive outcomes for their quality of life. The study emphasizes on how these CSR approaches should be more streamlined and move towards the inclusion of social demands in order to generate more benefits for the locals as well as for the businesses themselves.