Promoting rural entrepreneurship through improved rural road access in Timor-Leste

Income-generating opportunities are available to very few people in rural areas of Timor-Leste where the local economy relies mostly on subsistence agriculture. Severe infrastructure constraints, in particular poor rural roads access, limit potentials for local economic and social development.

Feature | 05 November 2014
The story of Cecilia and her family is a good example of how better road access can have a positive impact on people’s livelihoods. Improved rural roads access in Timor-Leste greatly contributes to the creation of an enabling environment for local communities that stimulates entrepreneurship like starting or expanding local businesses.

Cecilia Baptista
Income-generating opportunities are available to very few people in rural areas of Timor-Leste where the local economy relies mostly on subsistence agriculture. Severe infrastructure constraints, in particular poor rural roads access, limit potentials for local economic and social development.

Cecilia Baptista who lives in Dare village of Dili District, situated about 15 km from Dili, the capital city of Timor-Leste, has experienced the hardship of living in a Suco without adequate rural road access. The rural road passing through her Suco was in a bad condition and hardly accessible for motorized transport. In the rainy season the road was not passable at all for vehicles and motorbikes.

As a result of this, the livelihood opportunities for her family of 15 persons were limited to subsistence agriculture and a little irregular income earned as casual unskilled labor.

When the Roads for Development (R4D) Program rehabilitated the rural road passing through her village, this situation changed for her and her family.

Launched in March 2012, R4D is designed to lead and coordinate all rural road development and maintenance activities in Timor-Leste. The Program is funded by the Government of Australia and the current first phase ends in February 2016. R4D is aligned with, and contributes to, the Government of Timor-Leste’s Strategic Development Plan 2011-2030, the Fifth Constitutional Program of the Government of Timor-Leste and the Ministry of Public Works’ Five-Years Action Plan.

With better road access provided through R4D, Cecilia and her family saw the opportunity to start a bakery business along the road. “With the improved road, it is now possible to rent a truck and transport flour from Dili at affordable prices,” said Cecilia.

Initially Cecilia baked bread only for neighbors and relatives. As demand for her bread increased, the business was expanded and at present six family members are involved in the bakery business and the daily turn-over has now increased to US$150-200.

Cecilia’s customers now also include small shops located in nearby villages and the main market in Dili. As the business is developing well, Cecilia and her family are planning to expand the bakery business even further.

The village where they live has also tourism potential. A water fall located a few kilometers further along the road has started to attract tourists since the road access was improved. This has given Cecilia and her family the idea to set-up a coffee shop next to their home that will serve coffee and bakery products to tourists visiting the water fall.

“By expanding the business, we hope that we can open job opportunities to other members of the community,” Cecilia’s husband’s added.

The story of Cecilia and her family is a good example of how better road access can have a positive impact on people’s livelihoods. Improved rural roads access in Timor-Leste greatly contributes to the creation of an enabling environment for local communities that stimulates entrepreneurship like starting or expanding local businesses.