Friday, March 31, 2006

International Development: $15.5 million IFAD loan to benefit poor farmers in the Democratic Republic of the Congo

IFAD Press release

Rome, 29 March, 2006 – Poor farmers and fishers belonging to 55,000 rural households in the Democratic Republic of the Congo will benefit from a new development programme.

The International Fund for Agricultural Development (IFAD) will provide a US$15.5 million loan and a US$300,000 grant to support the US$26 million Agricultural Rehabilitation Programme in Orientale Province. The Belgian Survival Fund will cofinance the programme with a Euro 5.2 million grant while the Government of the Democratic Republic of the Congo will contribute US$3.4 million. The loan agreement was signed today at IFAD headquarters in Rome by the President of IFAD, Lennart Båge and the Chargee d'Affaires a.i. of the Embassy of the Democratic Republic of the Congo in Rome, Italy, Innocent Mokosa Mandende.

Years of civil conflict and economic mismanagement have taken their toll on the country, making it one of the poorest in the world. Transportation, communication and basic infrastructure have been destroyed; in many cases lack of maintenance has also led to deterioration.

Most rural households depend on agriculture for their survival. Continuous conflicts have also had a negative impact on the development of the country’s agricultural sector. Despite vast natural resources, less than 2 per cent of the arable land is cultivated and the country imports a substantial amount of food to meet national demand. Low agricultural productivity and lack of access to markets and financial services have exacerbated poverty in rural areas.

The new programme will enable poor farmers, fishers and livestock owners to increase their incomes and become more food secure. The programme will assist in the rehabilitation of the agricultural and fishery sectors by making financial services and new technology more accessible to poor farmers and fishers.

Farmers will be provided with seeds, pesticides, fertilizers and small tools so they can plant new crops and restore agricultural production. Farmers' groups will receive technical support and funding to build infrastructure and to develop economic activities such as fish farming and processing. Some 120 kilometres of new trunk roads will be built and 300 kilometres of feeder roads re-opened, making it easier for farmers and fishers to access markets where they can trade and sell their goods.

Transportation along the river will also be improved. New boats that are better adapted for the pickup and delivery of goods will help fishers and farmers to transport their goods more efficiently.

"IFAD wants to improve food security in the Democratic Republic of the Congo’s poor rural communities so that the country can move away from emergency assistance and concentrate on long-term development programmes. This programme will help farmers and fishers to improve their livelihoods and increase their incomes," says Leopold Sarr, IFAD's Country Programme Manager for the Democratic Republic of the Congo.

With this programme, IFAD will have financed five programmes and projects in the Democratic Republic of the Congo for a total of US$60 million in loans and grants.