Press release number: IFAD 34/05

Rome, 9 September 2005 - The 85th session of IFAD’s Executive Board approved US$102 million in loans to support rural development programmes and projects in the People’s Republic of China, the Republic of Ghana, the Republic of Rwanda, the United Mexican States and the United Republic of Tanzania. It also approved US$8.3 million in grants to support farmers, farmers’ organizations, agricultural research and training programmes.

US$29.2 million in loans for Asia and the Pacific
People’s Republic of China: empowering rural households

An IFAD loan of US$29.2 million will support the US$80.5 million South Gansu Poverty-Reduction Programme. Many small farmers in this province live in remote areas with limited and deteriorating natural resources, low-yielding arable land and poor access to water for irrigation and drinking. The programme will create the basis for economic production by promoting irrigation, terracing, tree-planting, training and capacity building. It will also improve infrastructure, ensuring better access to drinking water, health services, schools and financial services. Literacy classes and skills training will enable women and girls to become more active decision-makers and more confident borrowers. It will also help them generate more income.

US$29 million in loans and grants for Eastern and Southern Africa
Republic of Rwanda: a more profitable harvest

The US$20.1 million Support Project for the Strategic Plan for the Transformation of Agriculture will help Rwanda to make the transition from subsistence to market-based farming. It will strengthen the capacities of farmer organizations, government and the private sector to deliver services to farmers in the districts of Budaha, Bukonya, Karaba, Ngenda, Nyamure and Rusumo. IFAD will support the project with a loan of US$8.2 million and a grant of US$200,000.

Pilot programmes will test new methods of protecting watersheds, supporting livestock, increasing rice production in marshlands and strengthening the research and extension system. Successes emerging from these pilot programmes will be replicated on a larger scale by the Ministry of Agriculture to help more farmers increase incomes and diversify agricultural activities.

United Republic of Tanzania: support to pastoralists and farmers

The Agricultural Sector Development Programme – Livestock: Support for Pastoral and Agro-Pastoral Development will enable pastoralists and farmers to increase food security and incomes by improving livestock productivity and livelihood opportunities. The US$39.4 million programme will empower communities by involving them in rangeland management, farmer field schools for small livestock and training in livestock production, business and management. A community health programme will make pastoralists and farmers less vulnerable to disease and chronic health problems. Veterinary services will ensure livestock stay healthy. IFAD will provide a US$20.6 million loan for the programme.

US$19 million in loans for Western and Central Africa
Republic of Ghana: better harvests and larger incomes

A US$19 million loan from IFAD will support the US$27.7 million Root and Tuber Improvement and Marketing Programme. The programme will improve the lives of small farmers, traders and processors who depend on roots and tubers for their livelihood; at least half of them will be women. It will help them participate more fully in the marketing chain for selling roots and tubers, including negotiating prices and contracts, and improving bartering and marketing skills. It will also increase farmers’ knowledge about soil fertility management and pest control. The programme will promote the use of processing technologies by increasing rural producers’ access to matching grants, micro-leasing and other lending instruments. These activities will contribute to higher productivity, increased food security and higher incomes.

US$25 million in loans for Latin America and the Caribbean
United Mexican States: assisting rural and indigenous communities

The US$32.9 million Sustainable Development Project for Rural and Indigenous Communities of the Semi-Arid North-west will help 35,000 small and landless farmers and indigenous women and youth living in the north-west states of Baja California, Chihuahua, Coahuila and Sonora. The project will strengthen their participation and decision-making capacity and support their organizations. The project will also promote rural microenterprises, especially those associated with nature-based tourism. At least 30 percent of project participants will be from indigenous communities. IFAD will support the project with an initial loan of US$25 million.

US$8.1 million in grants to support farmers, farmers organizations, agricultural research and training

The Board has approved six grants under IFAD’s global/regional grants window.

A grant of US$1.09 million was approved to help rural organizations participate in the Commission on Family Farming, a commission created by the countries of the Southern Cone Common Market (MERCOSUR) to address the unique needs of farming families. MERCOSUR has four member countries (Argentina, Brazil, Paraguay and Uruguay) and two associate member countries (Bolivia and Chile). The Commission will support small farmers’ organizations so they can participate more effectively in policy making and in planning for regional rural development programmes. Farmers will have access to training, technology and information to help increase and diversify crop production.

A grant of US$1.45 million was approved for the World Agroforestry Centre (ICRAF), an international research centre supported by the Consultative Group on International Agricultural Research (CGIAR).

The grant will support ICRAF’s Programme for Strengthening Livelihood Strategies in the West African Sahel through Improved Management and Utilization of Parkland Agroforests. The programme will benefit poor farmers in Burkina Faso, Mali, Niger and Senegal by helping to improve the management of indigenous trees and shrubs and by increasing biodiversity. The programme will support community-based innovation, capacity building and research to identify a wider range of products that can be made from indigenous trees. This will increase income for rural poor people who rely on trees for their livelihood.

The Board also approved four other grants, totalling US$5.56 million, to support agricultural research and training in non-CGIAR international centres. These programmes will promote research in innovative approaches and technologies to reduce poverty and build the capacities of partner institutions, including community-based organizations and NGOs:

• US$1.5 million for the Association for Strengthening Agricultural Research in Eastern and Central Africa
• US$1.9 million for Capacity Building International
• US$660,000 for the Kenya Gatsby Trust
• US$1.5 million for the Southern African Natural Products Trade Association

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IFAD is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. Seventy-five per cent of the world's poorest people - 800 million women, children and men - live in rural areas and depend on agriculture and related activities for their livelihoods. Through low-interest loans and grants, IFAD works with governments to develop and finance programmes and projects that enable rural poor people to overcome poverty themselves.

There are 192 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.5 billion. IFAD has invested about US$2.8 billion in these initiatives. Cofinancing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help more than 100 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested almost US$8.7 billion in 690 projects and programmes that have helped more than 250 million poor rural men and women achieve better lives for themselves and their families. Governments and other financing sources in the recipient countries, including project beneficiaries, have contributed about US$8.4 billion, and multilateral, bilateral and other donors have provided about US$6.9 billion in cofinancing.