Assessing the Technical Efficiency and Resilience of Rwandan Smallholder Farmers Participating in Small-Scale Irrigation Schemes

Emmanuel Olatunbosun Benjamin (), Alexander Lotz, Oreoluwa Ola and Gertrud Rosa Buchenrieder
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Emmanuel Olatunbosun Benjamin: Professorship for Development Economics and Policy, RISK Research Center, Universität der Bundeswehr München (UniBw M), 85577 Neubiberg, Germany
Alexander Lotz: Governance in International Agribusiness, TUM School of Management, Technical University of Munich (TUM), 85354 Freising, Germany
Oreoluwa Ola: Professorship for Development Economics and Policy, RISK Research Center, Universität der Bundeswehr München (UniBw M), 85577 Neubiberg, Germany
Gertrud Rosa Buchenrieder: Professorship for Development Economics and Policy, RISK Research Center, Universität der Bundeswehr München (UniBw M), 85577 Neubiberg, Germany

Sustainability, 2025, vol. 17, issue 5, 1-19

Abstract: In a number of developing countries, low productivity and technical inefficiency, with climate change looming in the background, remain a severe challenge for the agricultural sector, especially smallholder farmers. To enhance smallholder farmers’ livelihoods in terms of agricultural productivity while mitigating the adverse effects of climate change, improving technical efficiency in a sustainable manner is a promising option. One possible alternative is the use of solar-powered small-scale irrigation systems in areas vulnerable to climate change to ensure sufficient access to water. This study uses stochastic frontier analysis to analyze technical efficiency and its determinants among smallholder farmers who benefit from a solar-powered small-scale irrigation scheme in Gitaraga, Bugesera District, Rwanda. Similar smallholders from a neighboring village, who were not participating in the irrigation scheme, represent the control group. The results suggest that inputs such as land, water, and labor are positively correlated to agricultural productivity. Farmers participating in the irrigation scheme are 31.2 percentage points more technically efficient compared to non-participants, despite similar climatic conditions. Thus, relaxing the water constraint on arable land will increase agricultural productivity. Explanatory inefficiency determinants include years of farming experience and market access. Subsequently, policy makers should continue to support programs that improve smallholder access to sustainable irrigation schemes, other infrastructure, extension services, and upstream value chains, as well as markets.

Keywords: agriculture; smallholders; climate change; technical efficiency; irrigation; Rwanda; sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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