US$ 232.3 million
Total project cost
US$ 93.6 million
Total IFAD financing
Azerbaijan is a middle-income country with 9.4 million people and average gross income per head of US$7,350. The oil and gas sectors generate nearly 60 per cent of gross domestic product (GDP).
Economic growth has sharply reduced absolute poverty over the past 15 years from half the population in 2001 to 7.6 per cent in 2011, according to official figures.
About 47 per cent of Azerbaijanis live in rural areas, and about 39 per cent of jobs are in farming and agro-processing. Though farming provides only 6 per cent of GDP, agriculture is a major contributor to Azerbaijan’s non-oil economy and has great potential for stimulating growth, job creation and food security. Agriculture’s low share of GDP is partly a reflection of its relative poverty.
Raising livestock, mainly cattle and sheep, accounts for nearly half of agricultural production by value. Most farms are made up of several plots each of 1-3 ha, and a typical farm may have just 3-10 livestock.
Climate change is an increasing problem for farmers, while soil erosion threatens sustainability. The Government is striving to implement strategies to address these hazards and to help the rural poor achieve lasting improvements in their living standards.
In Azerbaijan, IFAD loans work to reduce poverty and improve living conditions for disadvantaged rural communities.
Our country strategy programme (COSOP) in the country has two main objectives:
- enhancing natural resource management for improved food security; and
- helping poor rural people access profitable markets and value chains.
IFAD provides support within the framework of the State Programme for Poverty Reduction and Sustainable Development, and in particular favours the development of rural areas and of agriculture as a dominant force in the rural economy.
Key activities include:
- helping poor rural people access assets and services needed to manage natural resources sustainably, including improved irrigation and rangeland management; and
- improving farmers’ access to profitable value chains.
Farming provides 6 per cent of Azerbaijan’s GDP, is a major contributor to its non-oil economy and has great potential for stimulating growth, job creation and food security.
About 47 per cent of the population lives in rural areas, and about 39 per cent of employment is in agriculture and agro-processing.
Since 1997, IFAD has invested a total of US$67.7 million in five projects and programmes in Azerbaijan, which have mobilized overall investments totalling more than US$192 million, benefiting more than 88,000 households.
Projects and Programmes
Livestock: Livestock Productivity and Marketing Improvement ProjectREAD MORE
Agricultural Development: Rural Development Programme for Mountainous and Highland AreasREAD MORE
Investing in the agriculture sector delivers on the promise of economic diversification in Azerbaijan
Investing in rural people in Azerbaijan
Since 1997, IFAD has invested US$67.7 million in five projects and programmes in Azerbaijan, which have mobilized overall investments for a total of more than US$192 million.
The goal of IFAD’s strategy in Azerbaijan, covering the period 2010-2015, is to support the government efforts to reduce poverty substantially and improve living conditions for disadvantaged rural communities. IFAD provides support within the overall framework of the State Programme for Poverty Reduction and Sustainable Development, and in particular for the development