Release number IFAD/16/07

Rome, 22 February – More than 300,000 households will take part in a new programme to boost the business skills of self-employed people in rural areas of Tanzania. The programme will increase the cash incomes of small and micro entrepreneurs and improve their families' food security.

The US$25.3 million Rural Micro, Small and Medium Enterprise Support Programme will be partly financed by a US$19.5 million loan from the International Fund for Agricultural Development (IFAD). The loan agreement was signed today at IFAD headquarters in Rome by Zakia Hamdani Meghji, Minister of Finance of the United Republic of Tanzania, and Lennart Båge, President of IFAD.

The Government of Tanzania will contribute US$4.2 million to the programme. Irish Aid is expected to provide US$910,000, programme participants will contribute US$225,000 and IFAD will provide a grant of US$450,000.

"The programme will focus on reaching small rural businesses, particularly those run by women and young people," said Samuel Eremie, IFAD country programme manager for Tanzania.

"Households with chronically ill or disabled members or those affected by HIV/AIDS will be specially targeted."

The programme, which is widely known by its Swahili acronym MUVI, will be active in six regions on the mainland: Iringa, Manyara, Mwanza, Pwani, Ruvuma and Tanga. The proportion of self-employed people is higher than the national average in these regions. The programme is designed to support the government's National Strategy for Growth and Reduction of Poverty.

Small farmers and fisherfolk who could profitably sell surplus produce to processors will participate.

"MUVI will give them training, bring them information about market conditions and improve their access to markets," said Eremie.

Communication activities funded by the programme will use rural radio and other media to make market information available to farming families in the programme area and beyond.

The programme will strengthen the provision of business development services in rural areas, and improve local government capacity to promote and support the development of small and micro enterprises.

With this loan, IFAD will have provided funds for 13 programmes and projects in the United Republic of Tanzania since 1978, for a total of US$213.2 million.

IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, it develops and finances projects that enable poor rural people to overcome poverty themselves. There are 185 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.1 billion. IFAD has invested US$2.9 billion in these initiatives. Cofinancing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help nearly 77 million poor rural women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.5 billion in 732 programmes and projects that have helped more than 300 million poor rural men and women achieve better lives for themselves and their families. Governments and other financing sources in the recipient countries, including project participants, have contributed US$9.1 billion, and multilateral, bilateral and other donors have provided another US$7.1 billion in cofinancing.