Press release number: IFAD 24/06

Rome, 19 May 2006 - Madagascar's land reform programme will be strengthened by a new development project that aims to improve security of land tenure for rural poor people. The project will also promote social stability, reduce poverty and stimulate economic growth.

The US$23 million Project to Support Development in the Menabe and Melaky Regions will be financed partly by a US$13.1 million loan and a US$365 000 grant from the International Fund for Agricultural Development (IFAD). The loan agreement will be signed on 19 May by the Assistant President of IFAD, Ana Knopf, and the Ambassador for the Republic of Madagascar in Rome, Auguste Richard Paraina.

Menabe and Melaky, in western Madagascar, have high levels of poverty, malnutrition and illiteracy. The populations in both regions are made particularly vulnerable by insecure land rights and the high incidence of natural disasters. Madagascar is one of the poorest countries in the world and this project will specifically help small farmers with little or no land, who face severe malnutrition during the year. About 200,000 people are expected to benefit directly from the eight-year project.

The agriculture sector is the backbone of the economy with 85 per cent of people living in the countryside. Most rural people farm on plots averaging 1.2 hectares and poverty is strongly related to low productivity, poor transport services and insecure land rights.

The primary goal of the project is to establish a strong environment in the agricultural sector, particularly with respect to land tenure and agricultural services. It will promote sustainable development through training and services for rural people, as well as through conservation and management of land and watersheds, controlling erosion and maintaining soil fertility. Household income-generating activities will also be supported.

The Government of Madagascar started to improve its land titling administration in 2004 with its National Land Policy Programme. In 2005, IFAD supported the drafting of the new policy and the successful experimentation with delivery of land certificates, which secure property and land use rights.

In Menabe and Melaky, support will be given to set up 10 local land administration offices (guichets fanciers) to speed up the registration and recording of land rights. The rights of people who do not own land they use will also be addressed. Women, who are often deprived of the right to own land, will receive particular support.

IFAD has financed 10 development projects in Madagascar since 1979 with loans totalling US$106.2 million.

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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 187 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.2 billion. IFAD has invested more than 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 US$9.0 billion in 705 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.