Madagascar signs new financing agreement to boost food security, nutrition and incomes of smallholder farmers
20 October 2015
Rome, 21 October 2015 – The Republic of Madagascar and the United Nations International Fund for Agricultural Development (IFAD) signed an agreement today to finance the Project to Support Development in the Menabe and Melaky Regions – Phase II (AD2M-II). The total cost of the project is US$56.7 million. The funding is comprised of a $34.4 million IFAD loan, a grant of $6.0 million from the IFAD Adaptation for Smallholder Agriculture Programme (ASAP) Trust Fund, a contribution of $7.7 million from the government of Madagascar and $1.2 million from the beneficiaries.
The agreement was signed in Rome by François Maurice Gervais Rakotoarimanana, the Malagasy Minister of Finance and Budget, and by Kanayo F. Nwanze, President of IFAD.
AD2M-II aims to improve the incomes and the food security of smallholders and will build on the achievements of the first phase of the project. The ASAP funding will be used to strengthen and build smallholder resilience to the effects of climate change by improving and further developing irrigated agriculture, including spate-irrigation and natural resource management approaches.
"Based on the positive results of the first phase, the AD2M-II will be expanded from 19 to 44 communes in seven districts and will help smallholder family farmers improve their production and marketing," said Sana F.K. Jatta, IFAD Regional Director for the East and Southern Africa Division.
"It will also address land tenure security and safeguarding the land rights of smallholders so that they can investment more in their land and increase their incomes," Jatta added.
The project will also help smallholder producers organize into groups so they can negotiate better prices for their products. Eight new credit unions will be established to provide financial services and credit to producers, thanks to the new project.
The AD2M-II will be implemented by the Ministry of Agriculture. It will reach 57,000 households, among which 22,000 households are already benefiting from the first phase of the project. There will be particular emphasis on women and young people from vulnerable groups.
During his visit to IFAD, Minister Rakotoarimanana also signed the loan amendment agreement for an additional amount of US$17 million for the Support Programme for the Rural Microenterprise Poles and Regional Economies (PROSPERER). The new funding will help to consolidate the gains made in the previous phase of PROSPERER. It will also promote access of rural microenterprises to financial services, strengthen training for smallholder producers and young people, and protect the environment.
Since 1979, IFAD has invested a total of $265.5 million in 15 programmes and projects in Madagascar. This has generated a total investment of $624.4 million, benefiting 694,600 households.
Notes to Editors
Ghachem Kadari, Acting Country Programme Manager for Madagascar will be available for interviews in person or by telephone.
Press release No.: IFAD/68/2015
The International Fund for Agricultural Development (IFAD) invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided nearly US$17 billion in grants and low-interest loans to projects that have reached about 453 million people. IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN's food and agriculture hub.