The African Development Bank Group (AfDB) has approved two loans amounting to US$ 24.55 million for Madagascar to help reduce the country’s food insecurity, provide jobs to young people, as well as enhance women’s inclusion and boost the local and regional economy. The aim is to develop growth centres while taking into account the main fragility factors at national and local levels.
The Mid-West Rural Youth Enterprises Project (PROJERMO), located in the Bongolava and Amoron’i Mania regions, involves the establishment of enterprises in areas of activity and occupations linked to the production, processing, and marketing of agricultural products, as well as to the development and maintenance of irrigation infrastructure.
It comprises (i) the installation of 500 rural youth enterprises, 40% of which will be owned by women in sectors along the agricultural value chain (production, processing and marketing of agricultural products) and (ii) development of irrigated lowland plots covering a total area of some 2,200 ha for local farmers.
The investment is expected to deliver about 22,000 tonnes of paddy rice, 8,000 tonnes of groundnuts, and 28,000 tonnes of maize per year.
Some 500 rural youth enterprises, their families and the entire population of the 12 municipalities in the project area estimated at 186,500 inhabitants (of whom 51% are women) will benefit from the project. Above all, the entire country stands to benefit from the increase in agricultural production and food security. The project is also expected to generate 25,000 jobs annually.
The project, which will be implemented over a six-year period, is estimated at being worth $38.72 million. The US$ 23.32 million ADF loan and US$11.23 million loan from the Transition Support Fund will be used to finance the project, alongside contributions from the African Union and the government.