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Southern Region Cooperatives Development and Credit Project

Southern Region Cooperatives Development and Credit Project

The main objective of this project is to increase household incomes of rural farmers and improve their standard of living by providing credit for the purchase of draught oxen and for income-generating activities for women. The project also helps rehabilitate and maintain rural roads, increase the supply of safe drinking water and improve sanitary conditions in the project area.

The project has reorganized almost 300 farmers’ cooperatives and provided them with credit enabling them to purchase almost 15,000 oxen. Through establishment of a revolving fund to provide veterinary drugs, local veterinarians and communities have been empowered to sell drugs at a profit that will enable them to cover costs and maintain a supply of drugs. The credit system has benefited almost 5,000 women who have established various income-generating activities.

Almost 50,000 people have benefited from the construction of hand-dug wells. Other water schemes (some of them run by motor power) are under way. When they are completed, about 175,000 people will have easy access to safe drinking water. The project provides training to communities in managing and maintaining water supply schemes. The project has helped more than 2,300 households construct private latrines, 227 public latrines and 337 refuse disposal pits, exceeding the project’s goal by more than 100 per cent but using only 60 per cent of the funds allocated for the purpose. This was possible because of a high level of community participation. In the process of contributing their labour, many farmers also upgraded their skills.

Source: IFAD

Status: Closed

Country

Ethiopia

Approval Date

02 December 1993

Duration

1993 - 2002

Sector

Rural Development

Total Project Cost

US$ 25.46 million

IFAD Financing

US$ 17.45 million

Co-financiers (International)

Belgian Survival Fund US$ 3.3 million

Co-financiers (Domestic)

Domestic Financing Institutions US$ 1.55 million

National Government US$ 2.96 million

Financing terms

Highly Concessional

Project ID

1100000342


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