Geographical area and target groups
The project will focus on promoting small-scale agricultural and artisanal fisheries development activities on the islands of Mahe (153 km²), Praslin (38 km²) and La Digue (10 km²). These islands provide the necessary conditions and suitable land area for agriculture and livestock.

Some 3,800 households are employed in agriculture. In addition, another 3,000 households are involved in some form of small-scale agricultural practices. The project will target smallholder producers, small scale processors and marketers, and micro entrepreneurs, in particular women and youth, and artisanal fishers and youths. Young people will be targeted through the promotion of profitable small-scale production technologies (horticulture, livestock), the enhancement of climate resilience and income-generation through improved technologies and business linkages particularly with the tourism industry, and infrastructure improvements. Institutional public and private stakeholders that provide services to the target group will be strengthened.

Justification and rationale
During the last decades, employment in agriculture dropped because of low remuneration. Qualified human resources have moved to more lucrative jobs, often in tourism and services. The Government of Seychelles is now promoting the development of farming in order to achieve a higher degree of food and nutrition security. At the same time, two unrelated phenomena, piracy and climate change, continue to distress the country. Both can be addressed through the promotion of new forms of smallholder agriculture and fisheries development for national food production and market access.

Building on the on-going grant “Regional Initiative for Smallholder Agriculture Adaptation to Climate Change in the Indian Ocean Islands”, the project would focus, among others, on fresh vegetables and fruits, organic and conservation agriculture, small ruminants and poultry. Other commodities to be promoted for increased production, improved quality and marketing, both with a view to import substitution and niche market development, include artisanal fisheries and possibly small-scale aquaculture.

Sound economic profitability and opportunities for “climate-proofing” agricultural and fishing practices would be preconditions for investment. Increased productivity and profitability would be of crucial importance to interest young people. The investments would be sustained through building capacities of relevant public services and encouraging private-sector participation, in particular from processors, traders and from certain segments of the tourist industry.

Key programme objectives
The goal of the project would be to contribute to sustainable pro-poor economic growth and employment and resilience to external shocks and trends, including climate change. Its development objective would be to promote climate-resilient agricultural and fishery practices, and to increase and diversify market access for smallholder farmers and fishers.

Ownership, harmonisation and alignment
The project concept is based on preliminary proposals formulated by the Government of Seychelles and has been prepared in close collaboration between IFAD and the Government. In September 2011, Seychelles signed the Comprehensive Africa Agriculture Development Programme (CAADP) “Compact”. The CAADP framework is aligned to the Seychelles Medium Term National Development Strategy (MTNDS) 2013-2017, and the National Food Security Strategy 2008-2011 (which succeeds the Agricultural Development Strategy 2007-2011). The project will contribute to the implementation of the CAADP framework, as well as the national Agricultural Development Strategy.

Components and activities
The project would develop around the following three components:

Enhancing business arrangements and sustainable productivity

• Capacity building of small farmers and fishers. This sub-component aims to the establishment of business ventures between small farmers and fishers and buyers. The project will support the strengthening of small actors in agriculture, fishery and livestock in order for them to be able to better respond to the market.
• Accessing financial services. This sub-component would focus on improving small farmers and fishers’ access to favourable credit and financing in order to (i) access working capital, establish the required productive infrastructure and purchase the necessary equipment to successfully operate in the promoted business ventures; and (ii) fund investments for proven and climate resilient technologies. A list of cutting-edge technologies will be actively promoted by the project.

Strategic capacity strengthening and infrastructure

• The purpose of this component is to strengthen public sector institutions and build infrastructure to meet the requirements of the agricultural and fishing activities promoted by the project.
• Strategic capacity strengthening. Public sector institutions will be supported through human resource capacity building, equipment and limited infrastructure development, aligned to the work of other financing partners. Strategic capacity of the involved public partners would be strengthened, including a communication unit at the Ministry of Natural Resources and Industry (MNRI), a postharvest unit at the Seychelles Agriculture Agency (SAA) research station, targeted support for SAA and the Seychelles Fishing Authority, and assistance to the Seychelles Agriculture and Horticulture Training Centre.
• Public and collective infrastructure. The aim of this subcomponent is to finance enabling rural infrastructure, including public investments and collective investments (irrigation/water harvesting, etc.), which are related to activities under the “Enhancing business arrangements and sustainable productivity” component. Potential for parallel financing would be explored.

Project management, knowledge management and monitoring & evaluation

• To facilitate implementation, a project management unit would be embedded within the Office of the Principal Secretary in MNRI. Monitoring & Evaluation (M&E) would also be mainstreamed in the MNRI and the National Bureau of Statistics; as far as possible, existing mechanisms for generating knowledge regarding the well-being of the project target groups will be used. For knowledge management, a communication unit would be strengthened at the level of MNRI in order to enhance project visibility and knowledge management.

 Costs and financing (tentative)
The total project cost would amount to US$3.77 million over a period of 5 years. Subject to Executive Board approval, IFAD’s contribution would be in the form of a US$3.0 million loan on ordinary terms. Cofinancing opportunities are being explored. 

Cost table (tentative)

Financier	IFAD loan	IFAD grant	Cofinancing	Government of Seychelles	Beneficiaries	Total
US$	3.0 million	-	0.28 million	0.4 million	0.09 million	3.77 million

 

Timeframe (tentative)

Concept note	Quality Enhancement	Quality Assurance	Loan negotiations	Executive Board presentation
May 2012	November 2012	February 2013	March 2013	April 2013