Press release number: IFAD 27/02

Rome, Tuesday 21 May 2002 – Ministers of Agriculture, Finance, Economic Planning and Agriculture from the Eastern and Southern Africa region are due to meet in Dar-es-Salam, Tanzania on Thursday 23 May 2002 in a two-day regional conference organized by the United Nations' International Fund for Agricultural Development (IFAD). The ''Poverty Reduction and Rural Growth in Eastern and Southern Africa'' conference will be inaugurated by Dr Ali Mohamed Shein, Vice President of the United Republic of Tanzania and Mr. Lennart Båge (Sweden), President of IFAD.

Discussions will include a review of national rural development and poverty reduction strategies and means of increasing investment and financing for sound and sustainable rural development in response to the Monterrey Consensus and the Millennium Summit goal of halving the number of the poor by 2015. About 200 participants, including senior government officials of participating countries, representatives of international organizations, multilateral and bilateral donors, regional development and research institutions, NGOs and civil society are expected to take part in the deliberations of the conference, which is called upon to adapt the IFAD-proposed regional strategy to eradicate rural poverty.

The region's 21 countries have the highest concentration of extreme rural poverty in the world. Rural areas account for 83% of total extreme poverty with some 130 million living on less than a dollar per day. Fifteen of the 21 countries of the region are classified as low income and 12 are classified as least developed countries. No less than 10 have an average income per capita of less than US$ 400 per annum. Only 7 increased their per capita gross national product between 1990 and 1998. The region's slow economic growth is due to many constraints including lack of access to microfinance, improved agricultural technology, marketing opportunities, environmental and land degradation, the HIV/AIDs epidemic, foreign debts, conflict and post-conflict situations, lack of institutional capacities, etc.

Since its creation in 1977, IFAD has financed some 105 investment projects and programmes in the region for a total commitment of US$1.2 billion. With a total cost of US$ 2.5 billion, these projects are benefiting over 2 million rural poor.

In the Millennium Summit of 2000, the world leaders reaffirmed their commitment to reduce both the intensity and magnitude of poverty based on comprehensive targets articulated within the framework of Millennium Development Goals (MDGs). In order to translate these global objectives and commitments in concrete terms, IFAD - the only international institution mandated to address rural poverty - made a detailed assessment of the rural poverty situation in eastern and southern Africa to analyse and understand its overall dynamics within the socio-economic environment of the region and to identify the potential areas of growth and action. The outcome of this process culminated into the preparation of a Regional Strategy Paper (RSP), which will be discussed in detail in the Regional Conference. The Conference provides an opportunity to further crystallise the thinking process and to get an agreement to commit the countries to translate the objectives and implement the strategies included in the RSP based on shared responsibility and mutual interest for poverty alleviation.

The Conference also provides a forum for high-level policy-makers from the region to develop a common appreciation of the rural poverty problematic and the role of broad-based rural economic growth; to identify priority areas and mechanisms for national action and international support; to locate these clearly in the framework of regional (e.g., NEPAD) and national (e.g., PRSP) development and poverty reduction strategies; and to gain consensus on the best application of IFAD's own programme in the region in support of rural poverty reduction as mapped out in IFAD's new Regional Strategy which itself will be presented to the Conference for discussion and adoption. In this respect, the Conference will also try to build coalitions and partnerships among the development actors - civil society organisations, NGOs, donors, the private sector and the government - within a common platform to create necessary synergies and complementarities for optimising agricultural growth and empowerment of the poor.

In light of the findings of the regional assessment, it is quite evident that there are some critical constraints which poor people of the region are encountering. These issues will be discussed and deliberated within the following broad thematic areas, with the objective of obtaining the necessary guidance and direction for implementation of the regional strategy, which are:

• Preparation of a plan of action for the RSP taking fully into consideration the objectives of NEPAD for the region;
• Promotion of market linkages and globalisation for benefiting rural poor;
• Financial systems and intermediation processes for the poor;
• Access to productive natural resources by the poor, such as land, water, fisheries etc;
• HIV/AIDS, and gender empowerment; and
• Assessment of the Tanzania portfolio and future directions for poverty alleviation.

It is expected that through the Conference will be able to reach a broad consensus on the development priorities and action plan; outline and determine broad modalities for implementation of a regional poverty alleviation programme within the framework of national plans and strategies; explore the possibilities of integrating NEPAD and the HIV/AIDS strategy within the implementation plan for the regional strategy so that these can complement and reinforce the overall plan of action; and recommend specific strategies to forge coalition and partnerships with various stakeholders - such as multilateral institutions, bilateral donors, NGOs, civil society organisations and private and public sectors - to ensure that the regional strategy can be implemented in an efficient and effective manner.

The Conference will be conducted both in plenary sessions, facilitated and chaired by selected high-level invitees, and in a series of working groups. The ministerial panel will concentrate on the priority actions needed for implementation of the RSP incorporating the salient features of NEPAD. Working group sessions will address the key issues including smallholder farmer access to agricultural markets; support for rural finance; farmer access to, and management of, land, water and fisheries; systems for agricultural technology development and dissemination; HIV/AIDS; and PRSP processes and the rural poor. The Conference will be closed by the Prime Minister of the United Republic of Tanzania, H. E. Frederick Sumaye.

IFAD is a specialized agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. Since 1978 IFAD has financed 603 projects in 115 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.3 billion in loans and grants. Through these projects, about 250 million rural people have had a chance to move out of poverty. IFAD makes the greater part of its resources available to low-income countries on very favorable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.

Note to Correspondents:

A joint Press Conference will follow the official opening session (at 10:30 a.m.), Thursday 23 May 2002 at Golden Tulip Hotel, Dar es Salaam, Tanzania.