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Inclusive Agricultural Value Chains Development Programme

Madagascar's economy is primarily based on agriculture as 64.9 per cent of the population live in rural areas. Following a series of political crises that weakened its institutions, discouraged investment and seriously eroded living conditions and infrastructure. Poverty has worsened, particularly in rural areas where poverty rate stands at 82.2 per cent. It is estimated that 76 per cent of the population fall below the minimum food energy availability threshold. The prevalence of chronic malnutrition among children under five years of age is among the highest in the world. The underperformance of agriculture sector is one of the main causes of poverty in Madagascar.

DEFIS will apply solutions tried and tested by IFAD’s Madagascar country programme and scale them up in the southern half of the Big Island. With the normalization of political and social conditions, the programme’s investments will help strengthen and secure the production base of family farms in a context of climate change. It will connect them to production and marketing support services in order to sustainably transform the agriculture sector and the country’s rural economy.

DEFIS will operate in eight regions in southern and centre-eastern Madagascar. The direct beneficiaries of DEFIS investments and services will be 320,000 family farms, at least 30 per cent of them headed by women or young people. Eight value chains – rice, maize, cassava, groundnut, coffee, onion, small ruminants and honey – have been selected, three in each region. In addition, support will be provided for value chains of special interest, such as sorghum and millet, that can build the resilience of production systems for family farms in semiarid zones.

Status: Ongoing

Country

Madagascar

Approval Date

11 December 2017

Duration

2017 - 2024

Sector

Agricultural Development

Total Project Cost

US$ 175.5 million

IFAD Financing

US$ 53 million

Co-financiers (International)

OPEC Fund for International Development US$ 20 million

Co-financiers (Domestic)

National Government US$ 33.72 million

Beneficiaries US$ 14.28 million

Financing Gap

US$ 39.5 million

Financing terms

DSF Grant/Highly Concessional

Project ID

2000001492

Project Contact

Ibrahima Bamba


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Project design reports

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Supervision and implementation support documents

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