IFAD to support rural enterprises project in Republic of Ghana

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IFAD to support rural enterprises project in Republic of Ghana

Press release number: IFAD 02/03

Rome, 7 February 2003 - A loan agreement was signed today at the International Fund for Agricultural Development (IFAD) headquarters by H.E. Dr. Koffi Dsane-Selby, and by Mr. Lennart Båge, President of IFAD. The loan, in an amount of USD 11.24 million, will help fund Phase II of the ‘Rural Enterprises Project’, with a total cost of USD 29.27 million.

Beneficiaries of the Rural Enterprises Project will be poor rural families focusing on the most vulnerable households. Project clients will be the ‘entrepreneurial poor’ which include those interested in self-employment but lacking skills, technologies and initial capital; those with basic skills that need upgrading, and development training; and existing self-employed and owners of micro and small enterprises (MSEs) who need assistance to create more jobs.

The overall goal of the project is to improve the incomes and living conditions of the rural poor, especially the vulnerable groups (socially disadvantaged women, unemployed and underemployed youth), by creating self-employment and generating additional incomes. The specific objective is to build up a competitive rural micro and small enterprise sector, supported by good quality, easily accessible and sustainable services. Among others these measures are geared toward: stimulating the establishment and expansion of self-employment and micro enterprises; strengthening the production techniques and management practices of existing MSEs; enhancing the quality, design and packaging of the goods and services produced by rural MSEs; increasing access to working capital and investment funds.

With this project, IFAD will have financed 12 projects in the Republic of Ghana, for a total loan amount of USD 136.8 million.

IFAD is a specialized agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. IFAD makes the greater part of its resources available to low-income countries on very favorable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.