Annals of Business, Finance and Management

The Effects of rural income project on silk exports and livelihood of smallholder producers in Gatsibo District, Rwanda


Abiola Ogunlusi*

Sericulture has been seen in Rwanda as an opportunity for increasing raw materials for the textile industry. Therefore, it has provided a new source of income, reduced unemployment and most likely to improve the livelihood status of poor sericulture smallholder producers by increasing their income earnings. The high yield in silk production has been pleasing due to the favorable climatic conditions for mulberry cultivation; sericulture has been seen as a potential tool to reduce poverty and also to generate foreign exchanges from exportation. The broad objective of this paper focuses on the impact of the livelihood status of smallholder producers in Rwanda. Purposive and simple random sampling techniques were employed in selecting 286 sericulture households’ farmers in the Gatsibo district. Data for this study were analyzed using descriptive statistics, inferential statistics, paired-samples t-test, cross-tabulation and chi-square test of independence. The results of this study showed clearly a significant improvement in the livelihood of the farmers. It was gathered that 82% asserted there are organized markets available for silk exportation. 77% affirmed an improvement in their income status. The average level of income per year from cocoon production among the farmers was estimated to be $227.59. It is of topmost priority for this program to continue because its effect has a very positive impact on the livelihood status of the beneficiaries. Farmers should be provided with continuous training, access to credits. If sustained properly it will resolve future challenges and springs more opportunities for farmers and likewise to the country through exports.


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