Tools and guidelines

The step-by-step approach to VC analysis and project design follows the basic IFAD project design cycle.Each step is briefly described and followed by guiding questions for the project design team. The VC approach should be adopted early in the project cycle, such as when developing project concept notes for a country strategic opportunities programme (COSOP).

Since the mid-1980s, Ghana’s impressive development has made the country one of the strongest performers in Africa, although economic challenges and a fiscal deficit are currently slowing down the pace of growth. 

​Indonesia is the largest economy in South-East Asia and has developed rapidly over the past decade into a competitive and decentralized electoral democracy with a fast growing middle class. Despite the country's positive progress in reducing poverty, vulnerability and inequality remain high. Nearly 40 per cent of Indonesians are highly vulnerable to shocks, which can push them back below the poverty line. 

​This HTDN is directed primarily at the design phase of IFAD value chain projects, though it does have some relevance for both pre-design and implementation phases.

Smallholder livestock production is largely based on family farming and is key to poor rural people’s livelihoods, food security and employment creation. 

The purpose of this Lessons Learned note is to provide design teams with observations based on lessons from IFAD and other donors’ projects that may help in the design of value chain projects.

Strong links to markets for poor rural producers are essential to increasing agricultural income, generating economic growth in rural areas and reducing hunger and poverty. Every product that is sold locally, nationally or internationally is often part of an agricultural value chain (VC). From a development perspective, VCs are one of the instruments through which market forces can be harnessed to benefit poor rural women and men – not just producers, but wage earners, service providers and others.

GALS has been developed under Oxfam Novib’s (ON) Women’s Empowerment Mainstreaming and Networking (WEMAN) Programme since 2008 with local partners and Linda Mayoux. The use of GALS in value chain development (VCD) was piloted by ON and partners in Uganda through a small IFAD grant (2009- 2011). It was rolled out by ON with local partners in Nigeria, Rwanda and Uganda with the support of a large IFAD grant (2011-2014) and in other countries with cofunding from other donors.

The objectives of this How To Do Note are to provide a practical introduction to basic concepts, identify key issues to be analysed at the design stage and provide references to the most relevant literature.

This technical note serves as a guide to the design of appropriate programme interventions that apply value chain financing approaches to the development of competitive agricultural value chains. 

It emphasizes interventions that promote financial inclusiveness and the overall development goals of governments, as well as those of technical and funding agencies.