Press release number: IFAD 21/03

Rome, 10 April 2003 – The Executive Board of the International Fund for Agricultural Development (IFAD) today approved loans for five microfinance, development and technical support projects and programmes totaling USD 66.4 million in Bangladesh, Cameroon, Chad, Nicaragua, and Senegal. In addition, the Board approved four new technical assistance grants.

Country: People’s Republic of Bangladesh
Project: Microfinance and Technical Support Project
Total Project Cost: USD 20.2 million
IFAD Loan: USD 16.3 million

The goal of this seven-year project is to improve the livelihoods and food security of poor households by mitigating vulnerability and improving access to essential services and resources. The project will finance three components – microcredit, technical support and project implementation support. Women will be the main focus of this project. They make up 90% of micro credit borrowers. Approximately 276,000 households will benefit directly.

Country: Republic of Cameroon
Project: Roots and Tubers Market-Driven Development Programme
Total Project Cost: 21.7 million
IFAD Loan: 13.1 million

The programme assists small producers and processors of roots and tubers (cassava, sweet potatoes, potatoes, yams, macho and taro) in about 600,000 households. Low productivity in the farming system, inadequate extension services and lack of organized marketing and input delivery systems contribute to poverty in the area. The programme will support the organization of the root and tuber farmers at the village and regional levels. Financial assistance will be provided to enable the development of marketing strategies and the establishment of a market information system – owned and managed by the people. Provision will also be made for improving processing technology and farming systems.

Country: Republic of Chad
Project: Kanem Rural Development Project
Total Project Cost: USD 14.3 million
IFAD Loan: USD 13.0 million

Some of the foremost causes of poverty in the Kanem region of Chad are the lack of wage-earning opportunities, low agricultural productivity, sand dune encroachment, lack of access to financial services and limited rural infrastructure. Farming in dry areas is the mainstay of the people’s livelihood. Project farmers’ groups and rural organizations will be empowered to analyse constraints, prioritize development needs and participate in implementing interventions to improve incomes and food security. Almost all the poor rural people of the region will benefit.

Country: Republic of Nicaragua
Project: Programme for the Economic Development of the Dry Region in Nicaragua
Total Project Cost: USD 25.0 million
IFAD Loan: USD 14.0 million

Poverty in the region has its roots in the civil war of the 1980s and the ensuing economic collapse. The project will directly benefit 12 000 households in 33 of the 116 municipalities in the dry region of Nicaragua. Those most affected by poverty are youths, households headed by women and indigenous people. This programme will enable poor peasants and micro entrepreneurs to participate in the planning and implementation of business and employment plans.

Country: Republic of Senegal
Project: Agricultural Development Project in Matam – Phase II
Total Project Cost: USD 24.3 million
IFAD Loan: USD 12.5 million

The project will assist the rural inhabitants of about 26 village communities in the Walo areas and about 50 herder communities in the Ferlo area. It will assist approximately 150,000 people in about 20,000 rural households. The majority of the people live in poverty and suffer from malnutrition. Households headed by women constitute the most vulnerable group. The project will use a three-pronged strategy. First, it will build on phase one achievements to further develop the organizational and managerial capabilities of producer and other beneficiary organizations. Women and youth would be provided opportunities for increased participation, and will receive information, education and communication programs and specific support to promote their income-generating activities. Second, the project will further develop agricultural potential through rehabilitation of rural roads, irrigated perimeters and boreholes in pastoral areas. Third, the project will help consolidate and expand the network of microfinance institutions started during phase one.

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IFAD is a specialized agency of the United Nations dedicated to combating rural poverty in the most disadvantaged regions of the world. Since 1978, IFAD has financed 625 projects in 115 countries and in the West Bank and Gaza for a total commitment of approximately USD 7.9 billion in loans and grants. Through these projects, about 250 million rural people have been supported in their efforts to overcome poverty.