Recursos

ASAP resources are complementing the first component (natural resource management, investment in assets and enterprise development) of ACCESOS. 

Matching grants (MGs) are used increasingly by multilateral and bilateral institutions, including the International Fund for Agricultural Development (IFAD) and the World Bank, to cofinance productive assets and investments. Although confined initially to investments with clear public good characteristics, their use has spread. They finance a broad array of assets and productivity-enhancing technologies for groups, companies and individuals, benefiting the private sector directly with clear private goods characteristics. MGs are used as a short-term financing instrument to promote diffusion of technologies and enable target groups to carry out productivity-enhancing investments, compensating for the limited availability and high costs of term finance. At times, MGs incorporate a “crowding in” mechanism to attract financiers by sharing the risks and increasing the effective collateral value of the asset being financed. They are also used to support innovations that, by their nature, are more risky and less likely to attract loan finance. Despite their appeal as a relatively simple instrument to address access to finance constraints in the short run, there are several risks, which can limit their effectiveness and impact. When poorly designed and poorly implemented, MGs can distort and crowd out private and public investments. 

Between 2009 and 2012, the IFAD-supported Scaling up Micro-irrigation Systems (SCAMPIS) project developed a market approach for the dissemination of locally adapted drip irrigation kits. 

The approach identifies the technology that is best suited to the local context and appropriate for the most vulnerable rural inhabitants. It then builds a sustainable local supply chain for the irrigation equipment that makes the technology affordable and available, not just for the duration of the project but in the long term.

In just three years, the pilot project was able to dramatically change the lives of 30,000 farmers and their families (in total, around 150,000 poor rural people) on three continents.

This paper outlines IFAD’s strategic approach to enhancing food security and promoting sustainable smallholder agriculture development in Small Island Developing States (SIDS) in the context of exacerbated impacts of climate change and persistent challenges to market access. A renewed approach will provide an opportunity for increasing results and impacts from agriculture and fisheries, reducing the high transaction costs of project delivery in SIDS, adjusting to an ever-changing development environment and – most of all – avoiding the overlooking of SIDS’ persistent fragility and the risk that they are cut off from development assistance.