Project area: The Project will have national coverage. It will mainly intervene on the three main islands of Mahé (153 km²), Praslin (38 km²) and La Digue (10 km²), where the large majority of the population is based (“Inner Islands”).

Target group: The target group of the Project would consist of: approximately 770 farmers who are producing for the domestic market; approximately 1,330 people dependent on artisanal fishing and fish handling and processing; some 7,500 additional households which are involved in some form of small-scale agricultural practices and backyard gardening, in particular the households of this group that are below the poverty line.

Project objectives: The goal of the Project would be to contribute to equitable and sustainable pro-poor agricultural and rural economic growth and employment. Its development objective would be to promote modern and sustainable agricultural and fishery practices, and to increase and diversify market access for smallholder farmers and fishers. Project goal and outcomes would – taken together – contribute to provide the framework for a bold agricultural revival strategy of the Government of Seychelles, accompanied by tailored support to both fisheries and the rural micro enterprise sector.

Project description: A small Project management unit will be embedded within the Office of the Principal Secretary of the Ministry of Natural Resources and Industry (MNRI). Monitoring & Evaluation (M&E) would also be mainstreamed in the MNRI and the National Bureau of Statistics and make use, as far as possible, of existing mechanisms for generating knowledge regarding the well-being of the project’s target groups. For knowledge management, a communication unit would be strengthened at the level of MNRI in order to enhance visibility of CLISSA and its knowledge management.

The project’s proposed operational components are as follows:

• Enhancing business arrangements through capacity development of small farmers, rural micro entrepreneurs and fishers: The outcome of this component would be the establishment of business ventures between small farmers and fishers and buyers. The Project will support the strengthening of small actors in agriculture, fisheries and livestock in order to enable them to better respond to market signals particularly from the tourism industry. Activities will comprise training, communication support, studies, support to demonstration units, agricultural revival packs and facilitation.
• Improving Access to Agricultural and Rural Finance: The Development Bank of Seychelles and the Bank of Baroda, Seychelles, have expressed potential interest in participating in the implementation of this component through the provision of credit. Both banks would apply their prevailing terms and conditions without subsidizing services under the project. The component would introduce an experimental credit line in the form of a refinancing facility specifically for term financing of agricultural, fisheries and rural micro enterprise. The project will provide complementary support to participating banks, such as training and management development support in order to make the agricultural revival a viable proposition for banks in the Seychelles.
• Strategic capacity strengthening and infrastructure: 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 MNRI, a postharvest unit at the Seychelles Agriculture Agency (SAA) research station, targeted support for SAA and Seychelles Fishing Authority (SFA), and assistance to the Seychelles Agriculture and Horticulture Training Centre.

Important features: The design of CLISSA is based on preliminary proposals formulated by the Government of Seychelles and aligned with the national policy framework. The project will benefit from IFAD’s experience in other small island economies, particularly in the Maldives. It will also benefit from IFAD’s long and successful track record of promoting innovative small business development models in Madagascar.

The Project will work to improve the resilience and adaptability of farmers and fishers to external shocks and potentially negative trends including climate change, overexploitation of natural resources, loss and degradation of agricultural land to other sectors, fast liberalisation, enhanced international competition and imports taking place under increasingly uncertain conditions, including piracy, affecting the shipping industry and fisheries. Strategies for pro-actively encouraging women farmers and entrepreneurs to access resources and invest in small-scale enterprises in the promoted agricultural and fishing activities will be actively explored and developed as part of project implementation.

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Potential cofinanciers and domestic contribution: The Project will be implemented over a 5 year period. Project total cost is estimated at US$3.6 million. IFAD will provide a loan of US$3.0 million. The Government of Seychelles will cover all PMU staff salaries, accommodation and utilities for the PMU, taxes and duties on imported goods, as well as the Value Added Tax. The total amount of taxes and duties is estimated at US$146,000. Clients and private-sector partners will be expected to contribute to the partnerships.