Press release number: IFAD 13/06

Rome, 17 February 2006 - A new development programme will make it possible for more than 56,000 rural poor people in Benin to gain access to financial services, technology and markets, increasing their well-being and incomes. Membership in financial services associations will also increase by about 50,000.

The US$14.8 million Rural Development Support Programme will be financed by a US$10 million loan from the International Fund for Agricultural Development (IFAD). The loan agreement was signed today at IFAD headquarters in Rome by the President of IFAD, Lennart Båge, and the Minister for Agriculture, Livestock and Fisheries of the Republic of Benin, Fatiou Akplogan.

''This programme will benefit farmers by introducing post-harvest technologies like storage facilities that protect crops from insects and pests and by linking farmers to markets through training programmes to improve the quality of products so they will more easily find a market,” said Båge. Farmers will also learn to market their products at trade fairs, and learn new non-farm income generating activities such as setting up shops or processing products so they increase in value.

A major focus of the programme will be to increase access to savings and credit through the consolidation and expansion of 200 village banks called financial services associations. A network of these associations will be expanded to include about 100,000 shareholders by the end of 2010.

Special attention will be paid to women and young people who are particularly vulnerable because of limited access to land, financial services, information and training. IFAD has seen from previous programmes that women are often more active than men in starting new businesses, and they pay back loans sooner than men.

With this programme, IFAD will have participated in financing 9 loans to Benin for a total investment of US$226.35 million.

---

IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, it develops and finances projects that enable rural poor people to overcome poverty themselves. There are 185 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.1 billion. IFAD has invested nearly US$2.9 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 nearly 80 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$9.0 billion in 707 programmes and projects that have helped nearly 300 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 participants, have contributed almost US$8.8 billion, and multilateral, bilateral and other donors have provided another US$7.0 billion in cofinancing.