Operations and Activities    
  International Fund for Agricultural Development

Project ID: 1267
Executive Board Document:EB-2003-80-R-29-REV-1

Rural Finance Support Programme

The development goal of the project is to contribute to economic growth and poverty alleviation by improving the livelihoods of poor rural households and viability of enterprises in rural areas of Mozambique. Central to achieving this goal, as programme objectives, RFSP would aim to improve the sustainable access to financial services by poor individuals, vulnerable groups and emerging enterprises in rural areas and create a positive and conducive institutional and policy environment for the development and sustainable provision of rural financial services improving the economic opportunities and income of the poor. The programme's four components will work at the policy, organizational and community level. At the policy level, the programme will support continuous dialogue among stakeholders by setting up a rural finance forum. In addition to improving the macroeconomic environment for rural finance, the programme will directly assist poor rural households through enhancing income-generating activities; financing investments, better inputs and rural enterprises; and increasing their assets and savings.

Loan Amount:

SDR 6.65 million (approximately USD 9.5 million) on highly concessional terms

Total project cost: estimated at USD 34.3 million, of which beneficiaries will provide about USD 275 000; AfDB USD 16.4 million; the African Development Fund (AfDF) USD 5.4 million, domestic financing institutions USD 832 000 and national Government USD 1.9 million.

Cooperating Institution:

UNOPS

 

Project ID: 1184
Executive Board Document: EB-2001-73-R-16-Rev-1

Sofala Bank Artisanal Fisheries Project

The project will assist fishermen to diversify their fishing techniques as a means of increasing both their production and their incomes; it will encourage them to reduce post-catch losses and add value to their produce through improved processing techniques; and it will improve their linkages with both input suppliers and produce markets. At the same time, the sustainability of the fisheries resources will be promoted through support for data collection and for community-based co-management systems. The project will ensure the availability of financial services that have proved to respond to the needs of fish traders, fishermen and other members of the fisheries communities. The community development component will empower communities to take control of the planning, implementation and management of their own development activities; the provision of social infrastructure in the fishing communities will improve the living conditions there; and the health care programme will increase the capacity of communities to identify and manage their major health problems and improve their health status. The rehabilitation and maintenance of access roads crucial to the fishing communities will not only help expand the fish trade but also provide a broader stimulus to the local economies. Finally, the project will support the development of a legislative, policy and strategic framework, better suited to the challenges and opportunities currently facing artisanal fishermen.

Within the project area, there are some 290 coastal fishing communities with a total population of approximately 500 000. All are expected to benefit directly or indirectly from the project. Within these communities, there are estimated to be over 26 000 fishers and their families, for a total of around 130 000 people, who represent the primary beneficiaries of the project. In addition, an estimated 2 300 fish traders plus a large number of fish processors, boat builders, craftsmen and artisans, and other economically active groups within the coastal communities, also stand to benefit from the project, as will many families that provide labour along the access roads rehabilitated by the project. Women are expected to benefit particularly from the support for savings and credit groups, community health services and the provision of improved domestic water.

According to a range of social and human indicators, the three provinces within the project area (Nampula, Sofala and Zambezia) are among the poorest in the country. Within those provinces, the fishing communities can be assumed to be among the worst off. First, they are poor because they are isolated, largely cut off from, and have few contacts with, the larger economy. They lack communications, as well as social infrastructure such as clean water supplies, health facilities and schools. Second, the ability of fishermen to generate an income is constrained by their lack of fishing equipment and finance to purchase it, and of access to equipment suppliers; by non-optimal fishing techniques; by (often illegal) competition for the same resources from the semi-industrial fleet; by poor fish processing techniques; and by lack of access to markets, which means that they are unable to realise the full value of their produce. Third, both fishermen and other community members are poor because they lack the knowledge, skills and organization necessary to manage their social and economic activities in an effective and dynamic manner.

Loan amount:

SDR 14.00 million (equivalent to approximately USD 18.00 million)

Total project costs are estimated at USD 30.58 million of which Norwegian Agency for International Development (NORAD) will contribute USD 5.82 million and Belgian Survival Fund (BSF) USD 3.39 million

Cooperating Institution:

United Nations Office for Project Services (UNOPS)

Project ID: 1109
Executive Board Document: EB-99-68-R-19-Rev-1

PAMA Support Project

The goal of this seven-year IFAD-initiated project is to increase the participation of smallholder producers in the market economy on more favourable terms, with a view to increasing agricultural income and improving food security at both the national and local level. At the national level, the project seeks to:

- support the development of the policy, institutional and legal framework for enhanced smallholder market linkages; and

- serve as a catalyst for the start-up of new smallholder agricultural production projects.

At the local level, the objectives are to:

- respond to specific constraints faced by targeted smallholder producers in accessing markets; and

- identify opportunities available to alleviate them.

The main beneficiaries are the smallholder farmers who sell their agricultural produce on the market, those who buy food in periods of deficit and those who currently have no market access. Beneficiaries encompass a broad cross-section of the smallholder population, or family sector. Especially vulnerable groups are included, such as households headed by women and families with limited labour availability and/or little access to technical, financial and social support services.

Innovative Features:

- The focus on development of linkages between smallholder producers and markets is a relatively new area of involvement for both IFAD and the Government. It reflects a recognition by both parties that these linkages represent the most important area for intervention if smallholder incomes and food security are to be improved in Mozambique. It also reaffirms the fact that Government has a key role to play in the development of these linkages.

- The separate definition of PAMA and the supporting project is another innovative approach. The project will establish the polic y, institutional and financing frame-work in the medium-term and, at the same time, provide a means of making tangible progress in addressing current market constraints. It is thus both process-oriented and activity-based.

- The project enables a wide range of stakeholders to discuss market-development-related issues of common interest. Such dialogue should establish an atmosphere of trust and mutual respect and should promote the development of effective, mutually beneficial policies, strategies and interventions.

- Large elements of project implementation will be contracted to service providers. This course of action will build upon experiences gained and lessons learned under ongoing projects. It will also allow the Government to concentrate on pursuing its core functions without having to become involved in the implementation of activities best left to other economic actors.

Loan Amount:

SDR 16.6 million (approximately USD 22.8 million) on highly concessional terms.

Total Project Costs:

Estimated at USD 26.6 million, of which USD 3.8 million will be provided by the Government.

Cooperating Institution:

UNOPS.

 

 


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