Release number IFAD/52/07

Rome, 14 December 2007 – IFAD’s Executive Board approved more than US$236 million in loans and US$20 million in grants for projects and programmes that will help poor rural people in developing countries overcome poverty.

The 92nd session of the Board was held from 11 to 13 December at IFAD headquarters in Rome.

The Board also approved US$6.24 million in grants to support agricultural research and development activities in rural regions of poor countries. 

Western and Central Africa to receive US$76.09 million in loans and US$1.2 million in grants

In Burkina Faso a loan of US$11.0 million and a grant of US$0.4
million will help 20,000 poor rural households intensify and diversify their agricultural production through new and newly refurbished small-scale irrigation schemes, including innovative micro-irrigation technologies. The project will promote local negotiation processes to enhance participants’ access to land and water. It will also support marketing activities.

A new programme in Ghana will help poor rural people – particularly women – create profitable commodity and food chains, while improving links with the domestic and export markets. The programme, backed by an IFAD loan of US$22.33 million and a grant of US$0.4 million, will cover the rural areas of the three northern regions and the adjoining districts with similar agro-ecological characteristics in the Brong-Ahafo region, the poorest in Ghana. Nearly 45,000 households will benefit from income-generating activities of the programme and about 100,000 from infrastructure improvements.

Nigeria will receive a loan of US$42.76 million and a grant of US$0.4 million to develop rural microenterprises. The programme, which will strengthen Nigeria’s Medium and Small Enterprise Development Policy Framework, will support opportunities that are available in the off-farm rural microenterprise sector to boost incomes, increase food security and improve the livelihoods of poor households, particularly those with limited or no access to agricultural land. Participants will be poor rural people living below the poverty line, which are mainly households headed by women, unemployed youth,   and those who are physically challenged. Over eight years, about 700,000 people will benefit.
 
Eastern and Southern Africa to receive US$34.27 million in loans and US$8.62 million in grants

A loan of US$8.2 million will allow some 126,000 households in  Angola to increase agricultural production and gain access to more efficient agricultural markets. After almost three decades of war, peace in Angola has opened the way for reconstruction. It is
a potentially rich agricultural country, but lack of investment has severely limited the sector. There is significant potential to increase production by expanding the average cultivated area per farmer and by increasing labour productivity. The project will promote a participatory approach to small-scale agricultural investments.

A US$17.70 million loan and a US$0.29 million grant will increase the capacity and potential of existing on- and off-farm small rural microenterprises in Madagascar. Small-scale entrepreneurs will have access to a range of business development services, including  training services, micro-finance and insurance schemes. The programme will provide professional training and apprenticeships to other young people and adults who want to create their own microenterprises along key value chains. In partnership with the government and the Chamber of Commerce Federation, it will also strengthen professional organizations.

In Malawi, a US$8.37 million loan and a US$8.33 million grant will offer poor rural people the opportunity to take advantage of the country’s emerging economic liberalization. The programme will work with the private sector to provide those engaged in small-scale  production, processing and marketing of crops, livestock and fish with the knowledge, skills and financial resources they need to become competitive in the market place. It will improve farmers’ links to value chains by establishing more efficient production, transport, storage, processing and marketing systems for agricultural commodities.

Asia and the Pacific to receive US$84.55 million in loans and US$4.55 million in grants

A loan of US$19.55 million is set to improve the quality and responsiveness of national research and extension services in
Bangladesh by making them more demand-driven and more appropriate to the needs of small and marginal farmers. About 330,000 poor households will benefit. Participants, which will include groups of crop, livestock and fish farmers, will identify research priorities and will help plan and implement extension activities. These groups will also develop value chains to strengthen farmer-market links. The project will provide workshops, on-farm demonstrations, and production and entrepreneurship training.

China will receive a US$30.0 million loan for innovative approaches to reducing poverty in the Inner Mongolia Autonomous Region. The programme, which will focus on selected sectors such as microfinance, organic farming and marketing, aims to reduce poverty in sustainable and gender-equitable way by ensuring that village-level activities are selected by participants, including women. The programme will help them gain better access to information, technology, rural financial services and markets. It will also establish sustainable grassroots institutions, strengthen support services, and contribute directly to the ongoing reform of the rural banking system. About 125,000 poor and extremely poor households in 722 villages will benefit.

A US$4.0 million grant will support Phase II of the Poverty Alleviation Fund project in Nepal. The fund is a community-driven development instrument for addressing the interrelated problems of rural poverty and social exclusion. Groups that have traditionally been excluded for reasons of gender, ethnicity, caste and location are the focus of the project. It uses incentives to encourage community organizations to include women, dalits (outcasts) and indigenous peoples as members and beneficiaries who can also hold positions of responsibility. The pilot phase was first implemented in six districts and extended to 25 districts. The second phase will increase the project coverage by 15 districts each year and will operate in 75 districts by the end of the year.

In Vietnam, a US$35.0 million loan and a US$0.55 million grant will help develop market and business opportunities for poor rural people in Ben Tre and Cao Bang provinces. Participants will be those with small land holdings and limited assets, as well as landless labourers, ethnic minorities and women. The programme will also benefit existing microenterprises and small- and medium-enterprises that have commercial links with the participants. It will help establish organizations to help rural people identify and address market constraints, and negotiate with enterprises in value chains. About 43,000 households in Ben Tre and 55,200 households in Cao Bang will benefit from the programme.

Latin America and the Caribbean to receive US$24.41 in loans and a US$2.88 million grant

Guyana will receive a grant of US$2.88 million and a loan of  US$2.88 million to help farmers and small-scale entrepreneurs add value to their products so they can compete on international markets. A wide variety of nontraditional products produced by small farmers, such as fruits, root crops, vegetables, spices, have good external market potential. These products could represent a major economic diversification and growth opportunity for the country as a whole and for poor rural areas in particular. Nearly 30,000 people will benefit from project activities.

A US$7.13 million loan will help reduce poverty in rural areas of Yoro district in central Honduras. The project will benefit small-scale farmers, landless peasants and members of the indigenous Tolupan tribes. The project objectives are to boost economic growth by involving poor rural people in profitable and sustainable activities, and address the needs of women and youth while recognizing their contribution to overall development. The project will collaborate with government agencies such as the National Agrarian Institute and the National Forestry and Protected Areas Institute, as well as with NGOs working in support of indigenous groups and the rural poor.

About 20,000 families in Peru will benefit from a project to reduce poverty and extreme poverty in the rural areas of the Northern Highlands. Backed by a US$14.4 million loan, the project will help participants identify and map their assets and those of their communities, which is the first step towards developing new business ventures. The project will help them contract services they need for their enterprises. It will also ensure rural women can participate by helping them establish savings accounts. Microinsurance will be provided for the poorest of the participants.

Near East and North Africa to receive a US$17.20 million loan and a US$3.0 million grant

Azerbaijan will receive a US$17.20 million loan to rehabilitate the deteriorating irrigation infrastructure and introduce participatory irrigation management practices to ensure the systems remain efficient and sustainable. The project will also help small farmers improve crop and livestock productivity and diversify their incomes, assist them to form organizations to access a host of support services available from other agencies and projects operating in the area, and establish a sustainable microfinance system. Participants will come from 22,300 households of small farmers and pastoralists in four districts of north-west Azerbaijan.

In Djibouti, a US$3.0 million grant from IFAD will help improve living conditions of 6,000 pastoral households in the regions of Tadjourah, Dikhil and Arta. These households rely on herding, selling commodities such as salt and charcoal, and remittances from relatives in urban areas. About a third depend on food aid and about half have little access to water for human and livestock use. The project will rehabilitate and construct water points that make better use of rainwater runoff, and will regenerate vegetative cover on rangelands. Participants will identify the most suitable water and range activities and organize themselves to manage and maintain infrastructure projects.

The Executive Board approved three grants under the global/regional window to non-CGIAR-supported international centres for a total of US$4.18 million:

• United Nations Office for Project Services (UNOPS): Asian Project Management Support Programme
• United Nations Office for Project Services (UNOPS): Regional Programme for Rural Development and Poverty Reduction – Regional Unit for Technical Assistance (RUTA)
• Unity and Cooperation for People’s Development (UCODEP): Global Programme to Address the Marginalization of Poor Farmers and Migrants in Ecuador, Morocco and Senegal through Market Linkages and the Promotion of Diversity

The Board also agreed on two additional country grants:

• US$1.19 million to Iraq for the Improved Livelihoods of Small Producers in Iraq through Integrated Pest Management and Organic Fertilization Programme
• US$0.87 million to the International Labour Organization for the Skills Enhancement for Employment Project in Nepal

IFAD’s Executive Board is the organization’s second main governing body, consisting of 18 elected members and 18 alternate members elected for a three-year term of office. The Board meets three times a year in April, September and December. It has full authority to decide on the programme of work, to approve projects, programmes and grants, and to adopt or recommend action, pending the final approval of the Governing Council, on matters related to policy, the annual administrative budget, applications for membership and staffing.

---

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 201 ongoing IFAD-supported rural poverty eradication programmes and projects, worth a total of US$6.8 billion. IFAD has invested US$3.2 billion, with cofinancing provided by partners including governments, project participants, multilateral and bilateral donors. These initiatives will help about 83 million poor rural women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$10.0 billion in 766 programmes and projects that have reached more than 315 million poor rural women and men. Governments and other financing sources in recipient countries, including project participants, contributed US$9.3 billion, and multilateral, bilateral and other donors provided another US$7.5 billion in cofinancing.