Press release number: IFAD/39/06

Rome, 13 October 2006 –  A US$47 million project in Senegal to improve small farmers’ ability to produce food and get better access to sustainable, diverse and demand-driven agricultural services is to be funded by the International Fund for Agricultural Development (IFAD) in partnership with producer organizations and the World Bank.

IFAD will provide a loan of US$6 million and a grant of US$300,000 to support the Agricultural Services and Producer Organizations Project – Phase 2. The Government of Senegal and producers’ organizations will contribute US$20.7 million, and the World Bank will provide US$20 million in cofinancing.

The agreement for IFAD’s loan and grant was signed in Rome today by the Republic of Senegal’s Ambassador in Italy, Papa Cheikh Saadibou Fall, and the President of IFAD, Lennart Båge.

Agriculture provides cash income for more than 60 per cent of Senegalese households. People depend almost exclusively on groundnuts and cotton but demand and prices for them are falling. Poor quality seeds, lack of credit, limited markets and low and erratic rainfall hamper all agricultural production. Natural resources are under pressure from population growth and extensive animal grazing. Three-quarters of Senegal’s rural people live in poverty.

The project will focus on four main activities. It will enhance support for agricultural research through Senegal’s national agricultural research system. Agricultural advisory services will be extended to all 320 rural councils in Senegal to provide farmers with information on crops and products as well gather information that can help solve problems. Producer organizations will be strengthened to enable farmers across the country to network on local development issues and defend smallholder interests. Stronger organizations will also improve access to the technical and economic services needed to increase production, food security and income. Training, equipment and technical assistance will be provided for the government ministries responsible for agriculture to assist with policy development and co-ordination.

Since it started operations in 1978, IFAD has provided loans totalling more than US$133 million for 13 projects and programmes in Senegal.

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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 188 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.3billion. 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 85 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.2 billion in 716 programmes and projects that have helped approximately 301 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$8.9 billion, and multilateral, bilateral and other donors have provided another US$7.0 billion in cofinancing.