Mr. Chairman,
Honourable Governors,
His Excellency the President of IFAD,
Distinguished Delegates and Participants,

Mr. Chairman

On behalf of the delegation of the Government of Lesotho and on my behalf, I commend IFAD Secretariat for prompting its Governors to ponder on one of the important areas that are key for reducing hunger and poverty. The theme of this 30th IFAD Session of the Governing Council – Rural Employment and Livelihoods – reminds us that the rural sector is important to the overall economic growth of all developing countries.  This is a challenge to the agriculture and rural development sector to facilitate growth of this sector.  In Lesotho, growth of the rural sector is an anchor to the success of the recently launched Local Government System.  One of the major aspects of this System is to decentralise government services and devolve both the administrative and financial powers from the central Government to local administration.  It recognises the need to create jobs at local level by investing in activities with potential to improve their livelihoods.  One example is the introduction of value chain investment approach.  In such programs the youth in the rural communities stand a better chance to get remunerative jobs and/or participate as investors.

Distinguished Delegates and Participants

We further express our heartfelt appreciation for a continued support by the IFAD to enhance agricultural development in Lesotho in order to reduce levels of poverty and food insecurity particularly in the rural and poverty-stricken, mostly arid, regions of Lesotho.  IFAD’s contribution has enabled us to reach the most isolated and poorer communities.  This does not mean we have not met challenges that threatened success of these initiatives.  However, these are of minor consequence when compared with the impact they’ve had to the livelihoods of isolated and resource poor communities.

Currently the Government through the Ministry of Agriculture and Food Security is implementing Block Farming programme where the Sustainable Agriculture and Natural Resources Management Programme, an IFAD funded project, in part fulfilment of its component of Intensive Crop Production has put 594ha of land under this programme.  This programme will add value to both the food security aspect of our mandate, and also reduce hunger and malnutrition thus contributes in the poverty reduction struggle.

In addition to the block farming strategy, and to counteract effects of low rainfalls irrigation especially the low-cost gravity irrigation is still a priority.  Other irrigation systems are also recommended where feasible and if affordable.  The intention here is to optimise utilization of the available water resources that Lesotho is endowed with.  To achieve this objective donor funding is sought as costs of developing the relevant irrigation infrastructure are very high for our farmers.  Unfortunately for a resource poor country like Lesotho, where private sector investment is still being developed, Government has to intervene by providing such infrastructure in order to encourage private sector-led investment in the sector, whilst simultaneously promoting the best farming technology.

Mr. Chairman, Honourable Governors and Distinguished Delegates

We are, under the South-South Cooperation, a tripartite programme between Lesotho, FAO and India, developing an Irrigation Master Plan.  We believe that irrigated agriculture has potential to create employment, improve food security and farmer incomes thus reduce rural-urban migration and enhance livelihoods of the rural communities.

We have also drawn what we call the ‘National Food Security Action Plan’.  I wish to take this opportunity to invite IFAD and other participating development partners to help us implement this plan.  In the formulation of this action plan my Ministry collaborated with NGOs, other Government Ministries and agencies, and some locally based donor representatives such as DfID, local UN agencies namely FAO and WFP.

In November 2006, the Government of Lesotho hosted the 9th Donor Roundtable Conference, which its theme was “Sustainable Economic Growth and Poverty Reduction”.  You will note Honourable Governors that Lesotho recognises that poverty reduction is key to it economic growth and that it need support of its development partners to realise its achievement.  On behalf of the Lesotho delegation I thank IFAD for its participation and support to Agriculture sector during this important event.  I urge IFAD to persevere in its quest to support my Government and its poor citizens until we both realise poverty alleviation through our concerted efforts. 

Mr. Chairman

On rural credit facility, I wish to thank IFAD’s positive response to the need echoed by H.E. the Right  Honourable the Prime Minister of Lesotho on the occasion of his meeting with the President of IFAD in April 2005.   We now have a concept paper on the Rural Financial Intermediation Programme that we developed with an assistance of IFAD.  A full-fledged programme for possible funding by IFAD is under consideration.  When in operation this program will have fulfilled the country’s Poverty Reduction Strategy objective of “... providing the poor with necessary rural financial services to smallholder farmers and landless.”

In addition, this initiative will help reduce the financial vulnerability of the rural poor whose situation has been exacerbated by the continuing retrenchment of our migrant labour from the South African mining industry.  It goes without saying that this has led to diminishing remittance and rural household incomes, thus placing an upward pressure on the economically unfavourable rural-urban migration.  It is our belief that the proposed credit facility initiative will help reduce this negative impact.

Mr. Chairman

We believe that through implementation of this new programme it will be easy for the rural communities to enter the formal markets.  Let me share with you that the Government ministries responsible for agriculture and trade, few farmers and private companies in the RSA, assisted by the World Bank through the Japanese grant and the International Trade Centre, are collaborating in the implementation of two pilot projects on value chain approach.  With easy access to credit by the rural farmer we hope to expand programmes of this nature to beyond a pilot phase.  It is our belief that success of these initiatives will reduce rural-urban migration; attract more investments to finance rural infrastructure and other important services key to a market-oriented farming.  If well implemented and resources made available, the agriculture and rural development sector could play catalytic role in strengthening rural employment opportunities, improving livelihoods, and most importantly, creating a sustainable source of economic welfare.

While endorsing our decision of the 29th Governing Council Session to implement the uniform performance-based allocation system (PABS) across IFAD lending programme starting 2007 we urge IFAD management to take cognizance of individual countries’ structural peculiarities when establishing performance indicators. We advocate that specific sectors have their own set of performance indicators, because despite the inter-dependence, each sector has its own planning process and respective mandate.

In conclusion, Mr. Chairman, I commend and urge IFAD to continue its good work to help poor nations to reduce hunger and poverty.  At this juncture Hon. Governors and delegates let me inform you that my country is holding its general elections on the 17th February, 2007 and hope to be home in time to cast my vote.  We hope for peaceful and fruitful elections. 

Thank you for your attention.