Programme area. The programme will be national in character. Target group. The programme will target the rural population including smallholder farmers and rural microentrepreneurs, with a special focus on women and other vulnerable groups. It will strengthen the financial institutions serving the target group, especially farmers - that is, rural and community banks, credit unions, financial NGOs, savings and loan companies, susu collectors (who are informal financial service providers), companies and clubs, commercial banks with agricultural credit schemes and other institutions. The programme will also target apex organizations representing rural microfinance institutions, and technical service providers providing training and advisory services. Programme objectives. The programme's overall goal is to improve the livelihoods of the rural population by strengthening their access to sustainable financial services. The programme will ensure that activities reach - and meet the particular needs of - rural microfinance institutions and other financial institutions in northern Ghana, which serve relatively poorer clients in more remote areas. It will support the Ministry of Finance and Economic Planning in developing its capabilities to lead microfinance policymaking, implementation and dialogue. Programme description. Three components are currently envisaged, to be finalized during detailed programme design:
Important features. The proposed programme is in line withthe IFAD Strategic Framework 2007-2010 and with the IFAD Rural Finance Policy. It is consistent with the Government's financial sector strategic plan and reform programme, and with its food and agricultural sector policy and strategic plan. It is, moreover, being developed in parallel with Ghana's agricultural finance strategic framework, with the participation of the Government, the finance industry, farmers' organizations, development partners and other stakeholders. The programme will focus on rural finance, one of the four thrusts of IFAD's 2006 country strategic opportunities programme. It is also synchronized with the second cycle of Ghana's poverty reduction strategy, which views increased access to financial services as critical to the growth of private investment and income-generating activities needed to boost the economy and reduce income poverty. The programme will consolidate and build on the achievements of the IFAD-financed Rural Financial Services Project, the Rural Enterprises Project and several other initiatives in order to make the rural and agricultural finance industry more sustainable and efficient, and deepen and broaden its outreach to the rural population. It will foster innovation in rural and agricultural financial products, and improve financial literacy and skills among clients (especially women and farmers). It will also contribute to building strong linkages between the agricultural/rural sectors and the financial sector in support of agricultural sector and rural economic growth. In this respect, it will complement other Government- and donor-financed agricultural sector investments - including those of IFAD - helping to realize the enormous potential of the agriculture sector in terms of growth, income generation and poverty reduction. Potential cofinanciers. Discussions are ongoing with the African Development Bank, the World Bank and the Italian Development Cooperation. Interested cofinanciers are invited to contact IFAD. |
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