IFAD Board Approves USD 107.82 Million for Eight Development Projects

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IFAD Board Approves USD 107.82 Million for Eight Development Projects

Press release number: IFAD 36/02

Rome, 5 September 2002 –The 76th Executive Board of the International Fund for Agricultural Development (IFAD) met at the Headquarters in Rome, and approved loans for 8 development and poverty reduction projects for a total worth of USD 107.87 million. The projects approved are for Ghana, Guinea, Mauritania, Uganda, Mongolia, Moldava, Tunisia and Yemen.

Country: Republic of Ghana
Project: Rural Enterprises Project – Phase II
Total Project Cost: USD 29.27 million
IFAD Loat: USD 11.24 million

This project seeks to increase the productivity, product quality and output of rural non-agricultural micro and small enterprises, thereby stimulating agricultural productivity and improving the incomes and living conditions of the rural poor. Beneficiaries of this eight-year project will be rural families living in poverty with emphasis on women and vulnerable households. The clients for this project will be the ‘entrepreneurial poor’ including rural unemployed poor interested in self-employment but lacking skills, technologies, training and initial capital to set up their businesses.

Country: Republic of Guinea
Project: Sustainable Agriculture Development Project in the Forest Region
Total Project Cost: USD 15.5 million
IFAD Loan: USD 12.5 million

The foremost causes of poverty in the project area are low agricultural productivity; few wage earning opportunities and limited rural infrastructure. This eight-year project aims to empower local communities, including women and young people, to identify and analyse their constraints, prioritize their development needs and participate in implementing related interventions. Technical and financial assistance will be provided for community restructuring, microprojects aimed at achieving sustainable levels of agricultural development.

Country: Islamic Republic of Mauritania
Project: Maghama Improved Flood Recession Farming Project – Phase II
Total Project Cost: USD 11.5 million
IFAD Loan: USD 10.1 million

Project beneficiaries will include most of the rural population in the project area, estimated at about 75 000 persons. Poverty is mainly due to its isolation from the country’s economic, social, political and cultural mainstreams. This second-phase of the project aims to consolidate the two major achievements of the first phase: expansion of the area’s agricultural development potential and more equitable land tenure arrangements. The project will adopt a three pronged strategy seeking to reduce the incidence and severity of rural poverty and improving the human development indicators and institutional capacity of rural population.

Country: Republic of Uganda
Project: Rural Financial Services Programme
Total Project Cost: USD 24.51 million
IFAD Loan: USD 18.43 million

As this seven-year programme is essentially aimed at institutional development, beneficiaries will comprise any type of rural finance agency that meets stipulated eligibility criteria and serves the rural poor, especially rural women. The programme aims to create a healthy and extensive rural finance system that will offer rural populations the opportunity for higher and more stable income, thus alleviating poverty. In addition, it seeks to fill gaps existing in the country’s microfinance subsector, facilitate expansion of sustainable financial services and extend services to areas poorly served.

Country: Mongolia
Project: Rural Poverty-Reduction Programme
Total Project Cost: USD 19.1 million
IFAD Loan: USD 14.8 million

The predominant farming system is semi-nomadic herding in the vast, open rangelands. Life however is difficult for local people who live in isolation due to poor basic infrastructures, difficult terrain, limited access to markets and few opportunities for income-generation. During participatory rural appraisal training exercises, the priority needs that emerged were: support for herding as a perennial livelihood; creation of opportunities for non-herding income-generating activities; and improvements in social services, particularly primary education and health care.

Country: Republic of Moldova
Project: Expansion of the Project Area of the Rural Finance and Small Enterprise Development Project
IFAD Loan: USD 8 million

This has been IFAD’s first project in the Republic of Moldova and was effective in December 2000 with an aim to generate sustainable increases in the household incomes of the poorest farmers. The project has two main components: a small enterprise development fund and the formation of grass-roots saving and credit associations. The project started on a pilot basis in the judete county of Ungheni with the understanding that it would expand to other areas where the rural poor expressed a demand for rural financial services. The Government of the Republic of Moldova has now requested IFAD to expand the project areas to these other regions where rural poverty is equally severe.

Country: Republic of Tunisia
Project: Agropastoral Development and Local Initiatives Promotion Programme for the South-East
Total Project Cost: USD 44.3 million
IFAD Loan: USD 18.7 million

The proposed programme concerns the southeastern part of the country where there are the ‘lower arid’ and ‘Saharan’ climatic areas, in fact poverty is endemic in this region due to the harsh natural conditions and climatic hazards. It’s main potential is extensive pastoralism and marginal dry-land agriculture. This IFAD programme mainly aims at initiating a process of sustainable development and tackling the main sources of economic vulnerability.

Country: Republic of Yemen
Project: Dhamar Participatory Rural Development Project
Total Project Cost: USD 22.66 million
IFAD Loan: USD 14.01 million

Dhamar is Yemens’ sixth most populated governorate and up to 70% of the population live in highland, rainfed villages below the poverty line. Entire communities live in conditions of poverty and deprivation, with a standard of living that in some cases has remained unchanged for hundreds of years. The project’s overall goal is to enhance the food security of subsistence farmers, raise family incomes and improve the living conditions and development participation of small farm households and village communities in Dhamar.