Press release number: IFAD 29/04

Rome, 15 September 2004 - The German Technical Cooperation (GTZ) has formalized its relationship with the International Fund for Agricultural Development (IFAD) by signing a new agreement aimed at increasing the two agencies’ collaborative efforts.

The memorandum of understanding was signed today at IFAD headquarters by Peter Conze, director-general of GTZ’s Africa department, and Lennart Båge, IFAD’s president.

The purpose of the agreement is to provide a framework for continued cooperation between IFAD and GTZ, specifically with regards to exchanging information and enhancing opportunities for joint activities and resource mobilization. The agreement is the first of its kind between the two agencies, and set to remain in effect for the next five years.

Germany has historically been one of IFAD’s top financial contributors. Germany is also IFAD’s largest bilateral donor; since 1978, the German government has provided about USD 175 million to co-finance 22 IFAD projects.

IFAD has a long working history with GTZ, a German government-owned corporation specializing in sustainable development projects. GTZ has provided technical assistance to IFAD projects throughout Africa, Latin America, Asia, and Eastern Europe, and support for a wide range of activities aimed at boosting community involvement in rural areas.

In southeastern Cambodia, for instance, GTZ is currently working with IFAD to help almost 700,000 poor people participate in local decision-making and project development.

GTZ also frequently organizes joint workshops, symposia and research initiatives with IFAD. This week, the two agencies and the World Bank will be hosting a workshop in Rome to discuss a different approach to policy study known as “poverty and social impact analysis,” or PSIA.

“Today’s agreement helps solidify and support an important relationship during a time when resources for rural development are shrinking,” says Båge. “We at IFAD fully expect to continue working with GTZ in a manner than capitalizes on the strengths of our two organizations and makes significant strides in improving the lives of poor, rural people around the world.”

The agreement states that representatives from IFAD and GTZ will meet regularly to exchange information on regional and country programmes and areas of common interest, such as rural finance, land management, post-conflict support, agribusiness, organic agriculture, and HIV/AIDS prevention and mitigation.

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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 invested USD 8.2 billion in 660 rural development projects and programmes, about 250 million rural people have been supported in their efforts to overcome poverty.