US$5.65 million IFAD loan and grant to boost food security and incomes of rural poor people

Rome, 21 February 2012 – The International Fund for Agricultural Development (IFAD) will provide a US$4.04 million loan and a $1.61 million grant to the Republic of Botswana to help improve food security and incomes of smallholder producers, particularly for young people and women.

The financing agreement for the Agricultural Services Support Project was signed today by Christiaan De Graaf, Minister of Agriculture of the Republic of Botswana, and Kanayo F. Nwanze, President of IFAD.

Crop production in Botswana is practiced primarily for internal consumption but only covers a small part of national food requirements. The agriculture sector employs about 80 per cent of the workforce but contributes to only 2 per cent of the country’s gross domestic product. Environmental factors have determined the kinds of crops and animals that can be raised in the country, as much of Botswana is part of the Kalahari Desert, a dry and drought-prone climate.

The country’s primary crops are corn and wheat, which are grown in the eastern parts of the country that experience more rain. But because of poor soil conditions and erratic rainfall, the agricultural sector of the country is not able to meet the demand for food. Promoting agriculture and sustainable natural resource management are high priorities for the government.

The new IFAD-supported project will help smallholders to increase their productivity by bridging the gap between current and potential rainfed-crop yields and by demonstrating the use of urban treated wastewater for smallholder irrigation. With the low level of productivity, agricultural production in Botswana is highly subsidized by the government. The project will contribute to improved food security and livelihoods in rural communities, and decrease reliance on subsidies to promote farming as a viable business.

Cofinanced by the Government of Botswana, which is providing approximately $19 million, this new programme will be implemented nationwide by the Ministry of Agriculture to benefit more than 20,000 poor rural households, including women and young people.

The signature of this project marks a renewed collaboration between IFAD and the Government of Botswana following a 16-year hiatus.

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Press release No.: IFAD/11/2012

The International Fund for Agricultural Development (IFAD) works with poor rural people to enable them to grow and sell more food, increase their incomes and determine the direction of their own lives. Since 1978, IFAD has invested about US$13.7 billion in grants and low-interest loans to developing countries through projects empowering about 405 million people to break out of poverty, thereby helping to create vibrant rural communities. IFAD is an international financial institution and a specialized UN agency based in Rome – the United Nation’s food and agricultural hub. It is a unique partnership of 167 members from the Organization of the Petroleum Exporting Countries (OPEC), other developing countries and the Organisation for Economic Co-operation and Development (OECD).