Programme area. The programme will be national in scope and will be implemented in phases, with an initial pilot phase. Target group. The programme will focus on three groups: (i) the most vulnerable and marginalized groups, including women, young people, HIV/AIDS-affected households, orphans, child-headed households and subsistence producers; (ii) active poor households willing to seize opportunities to improve their small incomes; and (iii) households with the potential to become small-scale entrepreneurs. Programme objectives. The goal of the programme will be to reduce poverty, increase incomes and contribute to the overall economic development of poor rural households. Its specific objectives will be to: (i) sustainably improve the rural poor's access to efficient and effective financial services; (ii) create an enabling environment for business development in rural areas; and (iii) develop microenterprises and small businesses (on- and off-farm) and business services in rural Swaziland. Programme description. In addition to programme management and coordination, the programme is expected to have three components: (i) development of an enabling policy and operational environment for rural financial services; (ii) institutional development and capacity-building of formal and informal banking and business service institutions; and (iii) development of the formal banking sector through marketing awareness, technological and product innovation, and business development.
Important features. Many rural households in Swaziland are poor because they lack access to sufficient resources including land and irrigation water, markets, and financial and business services. Improved access to rural financial services is one of the main strategic focuses of IFAD's operations. This is reflected in the IFAD Strategic Framework 2007-2010; the IFAD Rural Finance Policy; and IFAD's strategy for the Eastern and Southern Africa region. The 2006 country strategic opportunities programme for Swaziland also highlights the importance of access to financial and marketing services for the development of sustainable enterprises (microenterprises and small and medium-sized businesses), one of its three main thrusts. The programme will support the objectives of the country's 2006 poverty reduction strategy and action plan. It builds on pilot activities - funded through a small IFAD grant - testing ways to increase incomes and generate employment opportunities through the creation and strengthening of rural microenterprises and small businesses, facilitated by improved access to rural finance. The programme's design approach is novel and innovative for both IFAD and Swaziland. First, there will be a departure from traditional management development training programmes towards well-focused rural financial supervision and regulation training programmes, in great demand among central bank staff. Second, institution development and capacity-building programmes will be specifically created for commercial banks and microfinance institutions. Third, new financial service products will be introduced in the rural market (such as biometric smart cards). Fourth, a one-stop-shop approach for accessing business services will be tried in one rural area (supporting the NGO Technoserve), while commercially based business services, including mentoring support, will be developed elsewhere. This aspect and the mode of delivery are still under design. The programme will also encourage private-sector development of business services (e.g. payment for business plans) and look at ways for raising delivery standards in rural areas. In terms of partnerships, linkages will be established with the World Bank (through the proposed new local government project); the European Union through the National Adaptation Strategy (the European Union's accompanying measures for sugar protocol countries affected by its sugar reforms); the Food and Agriculture Organization of the United Nations (through its agricultural development programmes and the junior farmer field schools); and the United Nations Industrial Development Organization (through its proposed scaling-up and modernization programme in the Southern African Development Community. Potential cofinanciers. Interested cofinanciers are invited to contact IFAD. |
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