Release number IFAD/53/07

Rome, 18th December 2007 – PROSPERER, a new IFAD-supported programme, will assist small-scale entrepreneurs in Madagascar increase their incomes through on- and off-farm microenterprises. 
 
The US$30.30 million Support Programme for Rural Microenterprise Poles and Regional Economies will be backed by a US$17.70 million loan and a US$0.29 million grant from IFAD. The loan and grant agreement was signed in Rome by Madagascar’s Embassy Chargé d’affaires Sambiheviny Findrama Elson and IFAD’s President Lennart Båge.

The OPEC Fund for International Development will cofinance the programme for US$5.0 million and the United Nations Capital Development Fund for a further US$600,000. The Government of Madagascar will provide US$4.51 million and programme participants will contribute US$2.20 million.

“The programme will provide existing small-scale entrepreneurs from five highly populated regions with a range of business development services, from training services to improved technologies, to overcome bottlenecks and support economic growth,” said Benoît Thierry, IFAD’s country programme manager for Madagascar. “Participants will also have better access to financial products and services, such as micro-finance and insurance schemes.”

The programme will offer professional training and apprenticeships to other young people and adults who want to create their own microenterprises along key value chains. It will also help strengthen public-private partnerships with professional federations, the government and the Chamber of Commerce Federation.

Craft work is an important activity in Madagascar, with an estimated 1,800,000 enterprises. The sector is 85 per cent informal and contributes 15 per cent to GDP, with an added value of US$150 million in 2003. By facilitating their inclusion in the regional economic growth poles promoted by the government, IFAD will support their development.

Close to 48,000 rural enterprises, 50 per cent of which are managed by women, will benefit from the programme.

“We estimate that about 50,500 jobs will be created, based on growth assumptions for existing microenterprises, new start-ups and new wage workers,” said Thierry.

Since 1979, IFAD has funded 11 projects in Madagascar for a total of US$126 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 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.