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IFAD’s support to the Nigerian Government’s poverty reduction programme in rural areas targets large numbers of smallholder farmers and is essentially people-centred. IFAD supports programmes and projects that work with communities, and with smallholder farmers as the key players.

During the period covered by the project, the landscape of global microfinance was deeply modified and “the game has changed”. On the one hand, the saturation of the market has led to over-indebtedness of very poor clients, scandals and systemic crises that have swept the whole sector in some prominent countries. On the other hand, it has been difficult for the industry to demonstrate tangible impact and, therefore, show that it has delivered against its promises of lifting hundreds of millions of very poor people out of poverty.

In this challenging context, the project aimed to help unlock the economic potential in sub-Saharan Africa, by promoting the growth of existing financial intermediaries that serve rural areas (rural financial institutions, RFIs) so that local entrepreneurs could take advantage of new opportunities to be more productive and more competitive, and improve their living conditions sustainably.

The goal of the grant was to develop home-based production of charcoal from cooking with firewood into a new livelihood opportunity – and thus create a sustainable value chain for the economic empowerment of poor rural women.

Women from poor rural households in Ethiopia, India and Tanzania were trained to put out fires when they had finished cooking in order to prevent smouldering, and to collect household charcoal through collection clusters, process it into briquettes and market the output through innovative partnership-based enterprises.

Transparent performance reporting is a key requirement for effective resultsbased management of IFAD rural finance interventions. Better reporting, tracking and management have benefits throughout the entire IFAD project cycle, from design to implementation and learning from performance data, and for actors at different levels: partner financial service providers (FSPs); programme coordination units (PCUs); government policymakers; and IFAD decision makers and managers.

The goal of this initiative was to contribute to establishing an inclusive financial system that meets the needs of the rural poor by supporting the growth of healthy microfinance markets and microfinance service providers. Underpinning this goal is the notion that timely and credible information is critical to the functioning of markets.

The programme supported innovation funds working directly with communities to scale up approaches in Bangladesh, Ethiopia, Ghana, Lao People’s Democratic Republic, Uganda and Viet Nam.

IFAD’s strategy in Nicaragua supports the efforts of farmers’ organizations and the government to increase inclusive growth in the agricultural sector as a vehicle for reducing poverty, generating employment and improving family food consumption, as well as contributing to sustainability and the replication of good practices. The strategic objectives centre on:
• Inclusion. Access is facilitated to assets, markets and income-generating activities, and job opportunities increase.
• Productivity. Labour productivity is increased through incentives that facilitate access to information, technology and technical and financial services.
• Sustainability. Environmental, fiscal and institutional sustainability are improved.

Ethiopia is the second most populated African country with an estimated 96.9 million citizens. Of the total population, 81 per cent are classified as rural. The population is also growing at a rate of around 3 per cent per year. Whilst extreme poverty is declining, it is still widespread and in 2011 was counted at 30 per cent.