Release number IFAD/36/07

Rome, 2 August 2007 – A new US$38.9 million programme in Uganda will improve livelihoods, living conditions and food security for about 100,000 households in four regions of the country. In addition to boosting productivity for a range of small rural enterprises, it will help secure equitable land rights for poor farmers.

The District Livelihoods Support Programme will be funded in part by a loan of US$27.4 million and a grant of US$400,000 from IFAD, together with a grant of US$4.8 from the Belgian Survival Fund. The loan agreement was signed today by IFAD's Vice-President, Kanayo F. Nwanze, and the Ambassador of the Republic of Uganda to Italy, Deo Rwabita.

"Farmers and small rural enterprises will all benefit from this programme," said Nwanze. "Our long-term aim is to empower local people and provide broad socio-economic support to these rural districts as they move forward in the decentralization process."

IFAD has supported the decentralization process in Uganda since 1987. Through direct support and empowerment local governments are able to identify and respond to the needs of poor rural people. Over two decades IFAD has gained valuable experience in decentralized development.

“We have found that working with local governments and communities is extremely effective in the fight against chronic poverty in Uganda,” says Marian Bradley, IFAD’s country programme manager for Uganda.

The programme builds on the achievements of the successful District Development Support Programme which recently closed in Uganda. Under the new programme, 13 districts will be added to the original five.

Immediate benefits for the target population will range from improved basic infrastructure to better access to financial services. The programme will contribute to improvements in rural roads and clean water supplies. It will also address a more equitable approach to land rights and land management. Nutrition and health are expected to improve as a result of the programme.

The programme underscores IFAD’s commitment to support local governments as they become more autonomous, by helping them to nurture community development, reinforce the institutions that provide financial services, as well as stimulating local economies.

One of the programme's main goals is to empower rural people to become self-reliant. Local people, including the poorest and most socially marginalized groups, will be encouraged to form grass-roots organizations and to take active roles in community planning, savings and farmers' groups.

With this programme, IFAD has financed 12 programmes and projects in Uganda - six of which are ongoing - for a total commitment of US$197.4 million.

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IFAD is an international financial institution and a specialized United Nations agency dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, IFAD develops and finances programmes and projects that enable poor rural people to overcome poverty themselves. There are 195 ongoing IFAD-supported rural poverty eradication programmes and projects, worth a total of US$6.7 billion. IFAD has invested US$3.1 billion, with cofinancing provided by partners including governments, project participants, multilateral and bilateral donors. These initiatives will help about 86 million poor rural women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.6 billion in 738 programmes and projects that have reached more than 307 million poor rural women and men. Governments and other financing sources in recipient countries, including project participants, contributed US$9.1 billion, and multilateral, bilateral and other donors provided another US$7.1 billion in cofinancing.