Madagascar signs new Financing Agreement to boost Food Security, Nutrition and Incomes of Smallholder Farmers

François Maurice Gervais Rakotoarimanana, the Malagasy Minister of Finance and Budget.

The Republic of Madagascar and the United Nations International Fund for Agricultural Development (IFAD) signed an agreement yesterday to finance the Project to Support Development in the Menabe and Melaky Regions – Phase II (AD2M-II). The agreement was signed in Rome by François Maurice Gervais Rakotoarimanana, the Malagasy Minister of Finance and Budget, and by Kanayo F. Nwanze, President of IFAD.

The total cost of the project is US$56.7 million — a $34.4 million IFAD loan, a grant of $6.0 million from the IFAD Adaptation for Smallholder Agriculture Programme (ASAP) Trust Fund, a contribution of $7.7 million from the government of Madagascar and $1.2 million from the beneficiaries.

The project, AD2M-II, is expected to improve the incomes and the food security of smallholders and will build on the achievements of the first phase of the project. The ASAP funding will be used to strengthen and build smallholder resilience to the effects of climate change by improving and further developing irrigated agriculture, including spate-irrigation and natural resource management approaches.

“Based on the positive results of the first phase, the AD2M-II will be expanded from 19 to 44 communes in seven districts and will help smallholder family farmers improve their production and marketing,” said Sana F.K. Jatta, IFAD Regional Director for the East and Southern Africa Division.

“It will also address land tenure security and safeguarding the land rights of smallholders so that they can investment more in their land and increase their incomes,” Jatta added.

AD2M-II will also help smallholder producers organize into groups with the aim of negotiating better prices for their products, with eight new credit unions established to provide financial services and credit to producers.

The Ministry of Agriculture is tasked with implementing AD2M-II which is expected to reach 57,000 households. Out of that number, 22,000 households are already benefiting from the first phase of the project. There will be particular emphasis on women and young people from vulnerable groups.

Since 1979, IFAD has invested a total of $265.5 million in 15 programmes and projects in Madagascar. This has generated a total investment of $624.4 million, benefiting 694,600 households.

This article first appeared HERE

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