Rome, 11 May 2009 - A US$13.5 million loan and a US$0.2 million grant from IFAD to the Republic of Cameroon for the Rural Microfinance Development support project will help to reduce poverty, increase income and improve the livelihoods of poor people in rural areas.
 
The loan agreement was signed today in Rome by Louis Paul Motaze, Minister of Economy, Planning and Regional Development of the Republic of Cameroon and the President of IFAD Kanayo F. Nwanze.

With high rates of unemployment in cities, more and more young people are opting to stay in rural areas to undertake productive activities in agriculture and other related sectors. Most of these young people face difficulties in accessing financial services adapted to their needs. The Rural Microfinance Development support project will fill this vacuum.

In doing so, it will help to increase rural employment, boost  the income of the rural poor, improve their food security and nutrition, as well as  enhance the status of women, who will participate in the management of the microfinance institutions.

The IFAD project will target the rural populations in the Centre, Extreme-North, North-West and Western Regions of Cameroon. The target groups comprise smallholder farmers with limited access to inputs and technologies and who have difficulties in accessing suitable financial services. The project will also help young people, particularly young women who despite their heavy workload and financial constraints undertake many rural microenterprises involved in processing, storage, transport and handicraft activities.

To date IFAD has funded seven rural development projects in Cameroon for a total of US$ 85 million.

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The International Fund for Agricultural Development (IFAD) works with poor rural people to enable them to increase their incomes, build their livelihoods and have a voice in the decisions that affect their lives. Since 1978, IFAD has invested over US$11 billion in grants and low-interest loans, helping approximately 340 million people in developing countries worldwide. IFAD is an international financial institution and a specialized UN agency based in Rome – the UN’s food and agricultural hub. It is a unique partnership of 165 members from the Organization of the Petroleum Exporting Countries (OPEC), other developing countries and the Organisation for Economic Co-operation and Development (OECD).

Press release No.: IFAD/23/09