Category: Press Releases

18 Jul
By: ict 0

Minister Jordan signs OFID Agreement

Ministry of Finance

2017-07-15

Press Release

Minister of Finance signs Agreement with OFID; highlights role of the private sector as the creator of wealth

 

The local Private Sector is set to benefit from new avenues for finance and investments with the signing of the Agreement for Encouragement and Protection of Investment with the OPEC Fund for International Development (OFID).

Minister of Finance, Hon. Winston Jordan on Thursday July 14, 2017 signed the Agreement in Vienna, Austria with OFID Director-General Suleiman J. Al-Herbish. It is the first such agreement with a multilateral partner and sets in train a framework for the start of private sector operations in Guyana.

OFID’s private sector facility supports the private sector in developing countries through loans to micro, small and medium–enterprises, as well as directly to specific projects. As a pre-condition to such private sector investments, OFID requires the signature of a framework agreement with the country concerned for the encouragement and protection of investment. The agreement accords OFID the same privileges as those normally granted to international development institutions.

The signing of this agreement comes at a time when a number of other initiatives are being implemented by Government to help drive private sector growth including the design of a fiscal regime and a fiscal sustainability framework to address the management of natural resources wealth, development of a local content policy and the development of a time-lined work-plan on what the private sector needs to do to prepare for oil and thereafter.

Additionally, building on the wide ranging concessions granted by the previous government, the APNU+AFC Coalition has introduced several legislative and operational changes in support of the manufacturing industry which include the importation of raw materials free of excise tax, waivers on duty and taxes for items that are not listed on the approved list of raw materials once applications are made to the Council for Trade and Economic Development (COTED), initiatives by the GRA to reduce processing time, the introduction of the ‘Trusted Trader Status’ to compliant importers, including manufacturers, the implementation of 1-year tax exemption letters to manufacturers, and the reduction of the corporate tax rate paid by the manufacturing sector from 30% to 27.5%.

More recently, the Government announced the first Round Table Meeting with the GMSA scheduled for July 28th. This Round Table meeting aims for a more structured dialogue and effective engagement with key players in the sector.

OFID is the intergovernmental development finance institution established in 1976 by the Member States of the Organization of the Petroleum Exporting Countries (OPEC) and is bounded in ‘the natural solidarity which unites OPEC countries with other developing countries in their struggle to overcome underdevelopment.’

OFID has 13 member countries: Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Nigeria, Libya, Kuwait, Qatar, Saudi Arabia, and United Arab Emirates and Venezuela.

Resources for the Fund come from voluntary contributions made by members and its various operations.

Between 1976 to present, OFID has committed more than US$55 million to Guyana through its public sector operations. Much of this amount was provided as debt relief—some within the framework of the Enhanced Heavily Indebted Poor Countries Initiative—while more than US$29 million was earmarked for Guyana’s energy, agriculture and financial sectors.

Read More
12 Jun
By: ict 0

Remarks by Hon. Winston Jordan, at the Opening Session of the National Workshop on Sustainable Funding Strategy

Mr. Jaime Coronado Quintanilla, Coordinator of CEMLA’S Public Debt Management Capacity Building Programme (PDP), Mr. Juan Carlos Villanova and other PDP experts, Dr. Terrence Smith, Deputy Governor, Bank of Guyana, Other Senior Government Officials, and Participants:

Welcome to the opening of this, our second National Sustainable Funding Strategy Workshop, which is jointly organised with our long-standing development partner – the Center for Latin American Monetary Studies (CEMLA). Our sincere gratitude is extended to CEMLA for their unceasing support over the years.

Let me take this opportunity to thank Mr. Jaime Coronado for his exemplary work, leadership and guidance under the Public Debt Management Capacity Building Programme (PDP) Strategic Country Plan for Guyana, which concludes this year. Under this Programme, Guyana has made notable progress in the area of debt management. Among the notable achievements to date have been: 1) the formulation of a National Sustainable Funding Strategy in 2015, inclusive of a Debt Sustainability Analysis and Public Debt Strategy; 2) a comprehensive Public Debt Management Procedures Manual which has improved and ensured consistent debt management operations whilst reducing operational risk; and 3) the first National Workshop on Debt Management Self-Evaluation and Improvement (DMSAI) in 2016, using the World Bank Debt Management Performance Assessment (DeMPA) Methodology to assess our debt management operations, and chart a course for improvement and achievement of international best practices.

These achievements are tangible indications of our Government’s redoubled efforts to ‘raise the bar’ in the management of public finances, including the public debt, in order to heighten transparency and accountability, value for money and efficient and effective allocation of our resources.

Guyana is well acquainted with the harsh consequences of an onerous debt burden; the painful process of structural adjustment; and the acrid outcomes of weak and impudent management of the public purse by previous administrations. And, in spite of many unhelpful comments and misguided actions, since the presentation of the last budget, our Government remains firm in its stance to do all that is required to prevent the recurrence of such situations. Some of our policy measures may be bold in their intent, leading to unpopular reactions.  However, while governments are often swept into power on a wave of popularity, they are similarly swept out ignominiously when they succumb to demands, especially by special interest groups, to implement policy measures that have short term gain for these groups, but long term pain for the mass of the population. History is a great teacher, for which we should learn its copious lessons.

Madame Chairperson, our Government has managed to reduce the debt further to 46 percent of GDP at the end of 2016, relative to 2015. But we cannot become complacent; neither do we have the luxury of sitting on our laurels for the lower debt ratio was achieved at the expense of the unsatisfactory implementation of the Public Sector Investment Programme (PSIP), where we failed to achieve an exemplary disbursement rate of our foreign funded projects. This led to the unacceptable situation of negative net inflows by our major donor, at a time when foreign exchange supply was challenged because of under-performance in critical sectors and areas of the economy.

We also have to be cognizant of the impact on the public debt, of the many loans contracted by the previous administration, several of which (for example, CJIA Modernisation Loan of US$135 million and East Coast Road Widening, US$50 million from China Exim Bank), remained largely undisbursed at the time this Government came to Office; and the ill-advised and/or poorly conceived projects (Skeldon Sugar Factory, Marriott Hotel, Widening of Sheriff Street) and investments (NIS investment in CLICO and Berbice Bridge) embarked upon by the previous administration, which do not contribute to the Treasury, but the repayment of whose debts, nevertheless, are being met by the Government and, by implication, the citizens of this country – at least those who pay taxes. With an outer debt ceiling limit of 60 percent of GDP, these loans have restricted the fiscal space and reduced our room for maneuver, at a time when we are seeking to implement a new generation of transformative projects such as the Demerara Harbour Bridge and the Georgetown-Lethem Road.

Madame Chairperson, undoubtedly, the hard work must continue to ensure that debt levels remain sustainable, within prescribed parameters. Even with past fiscal consolidation and oil revenues on the horizon, we must be cognizant of the new challenges that confront us such as dwindling sources of concessional financing and vulnerability to external shocks.

Madame Chairperson, over the last two years, we have sought to widen the range of multilateral partners, from which we can access concessional or near concessional resources, given our new status of upper middle income country. In this respect, we have joined the Islamic Development Bank and we are renewing our relationship with the OPEC Fund for International Development (OFID). Next month, I will journey to the Fund’s Headquarters to sign an Investment Protection Treaty, among other activities. This would pave the way for lending to the private sector. We are also having preliminary discussions with the New Development Bank, also known as BRICS Bank, with a view of accession, whenever that Bank makes the decision to expand membership beyond the five original members. The BRICS Bank is an important repository of resources for infrastructural development and we would like to tap those resources to help to narrow infrastructural deficit in Guyana.

Madame Chairperson, we are on record as being uneasy about borrowing against future oil revenues. While tempting, as it would provide important resources to finance many critical pipeline projects, we have to be wary of the volatility of the oil market and our capacity to utilize such resources in a transparent and accountable manner. We will continue to assess the situation and weigh carefully our options before any decision, in this regard, is made.

With these challenges, this Workshop is opportune as we assess our economy in the context of its debt sustainability, and craft strategies that strike a prudent balance of cost and risk.

It is also critical that adequate attention be paid to the internal debt as we seek to mobilise domestic resources, both as a means of reducing Guyana’s exposure to external risk factors and to support our development goals. As I speak, a team of experts from another development partner, Caribbean Regional Technical Assistance Centre (CARTAC), is in Guyana, on a mission to aid the government in developing its domestic bond market. In the context of debt sustainability, this gives the government more flexibility to respond to external shocks, while reducing our reliance on external borrowing.

As part of this exercise, we should also seek to improve our rating on the DeMPA scorecard, in particular, on Debt Performance Indicators (DPI) 3 and 6, where Guyana has obtained relatively low scores. These Indicators cover the establishment of a formalised Debt Management Strategy and Coordination with Fiscal Policy. This Workshop should be seen, therefore, as the first step in crafting a formalised Debt Strategy, so as to secure improved DeMPA scores.

Additionally, this Workshop is an opportunity to reinforce the technical capacity of government officials in areas related to sustainable funding strategy. Out of this exercise, I intend to have a permanent team in government established that will be able to revise the national strategy, periodically. It is my steadfast belief that we should have the capacity to conduct these assessments, annually, so as to maximise ownership of the strategies, track progress made, monitor macroeconomic stability, and foster sustainable growth. This will go a long way towards achieving and sustaining a ‘good life’ for all.

With this in mind, I again want to thank Mr. Coronado and CEMLA for partnering with us to support this activity, and I would like to charge each participant with the responsibility of giving his/her best to this exercise. Your task is important to the successful emergence of a sound strategy for debt management and debt sustainability in Guyana.

I would like to close by wishing the participants fruitful discussions and a very productive training workshop. I look forward to receiving the report on the exercise as well as recommendations for the improvement of debt management in Guyana.

It is now my distinct pleasure to declare this National Workshop on Sustainable Funding Strategy officially open.

Thank You!

Read More
02 Jun
By: ict 0

More than 150,000 Guyanese Students to improve Learning Outcomes

Washington, April 28 2017 – More than 150,000 students and teachers will improve Mathematics learning and teaching, and benefit from an improved medical faculty as a result of a US$13.3 million credit from the International Development Association (IDA) approved today by the Board of Executive Directors of the World Bank.

Guyana has achieved near-universal primary education enrollment between 2014 and 2017 and secondary education is expanding rapidly. Education continues to be a priority for the government. However, low quality of teaching and learning at all levels and inequalities in learning outcomes present significant challenges. Only 14 percent of grade 2 students achieved ‘standard’ scores in literacy and numeracy in 2016.

“Quality education is one of the strongest instruments for reducing poverty and boosting inclusive growth. Improving the quality of teaching is essential to ensure that the skills learned in the classroom lay the foundation for future work-place success,” said Tahseen Sayed, World Bank country director for the Caribbean. “The World bank remains Guyana’s strong partner to support enhancements in teaching competencies and improvements in students learning outcomes”.

Among concrete results to be achieved by the project are:

  • A new curriculum framework, teaching guides and course outlines for nursery, primary and lower secondary levels;
  • 6,500 teachers trained in the new curriculum;
  • A new building and facilities for the University of Guyana’s Faculty of Health Sciences; and
  • Improved standards of the University of Guyana’s medical program in line with the Caribbean Accreditation Authority in Medicine and other Health Professions.

The project builds on a long engagement in education in Guyana, including two previous and three ongoing projects amounting to about US$ 62 Million. It is financed by IDA, the World Bank Group’s concessional financing window. It also builds on UNICEF-Bank collaboration to improve nursery education and will help Guyana meet health education standards of the Pan-American Health Organization (PAHO) in health education. The credit has a final maturity of 25 years, including a grace period of 5 years.

source: http://www.worldbank.org/en/news/press-release/2017/04/28/more-than-150000-guyanese-students-to-improve-learning-outcomes

Read More
02 Jun
By: ict 0

Caribbean can benefit from more regional integration

Caribbean countries can benefit from more regional integration, World Bank Says

WASHINGTON, March 30, 2017 – New World Bank analysis launched today at a conference co-organized with the Miami Herald “The Caribbean Dilemma” highlights common challenges faced by small economies and identify shared solutions to generate sustainable growth in the region.

“The Caribbean has tremendous economic potential and growth opportunities”, said Tahseen Sayed, World Bank Country Director for the Caribbean. “This conference takes a long-term view and focuses on key priorities and policies for the region that can help boost growth, building on lessons from other small economies”.

A new World Bank study “Open and Nimble: Finding Stable Growth in Small Economies” shows that economic size measured by the size of working age population does not matter to the development and economic growth of countries in Latin America and the Caribbean. In fact, some of the smaller economies in Latin America and the Caribbean such as Panama and the Dominican Republic are growing much faster than the region’s giants.

“The analysis shows that while small economies are more open to trade and foreign investment, and highly specialized in their export sectors, they are also more nimble and able to change the structure of their economies and exports overtime”, said Daniel Lederman, World Bank Deputy Chief Economist and lead author of the report. “Being more nimble can help them remain competitive when facing external shocks. In fact, small economies such as Costa Rica and Caribbean countries have been more successful in reinventing themselves than larger economies”.

Another World Bank report “Taming volatility: Fiscal Policy and Financial Development for Growth in the Eastern Caribbean” shows that countries in the Organization of Eastern Caribbean States (OECS)  experienced volatile growth due to  their openness to trade, limited economic diversification, exposure to natural hazards, and fiscal policies.

“Tourism is the most important industry in the OECS, ranging from 26 percent of GDP in St Vincent and the Grenadines to 74 percent of GDP in Antigua and Barbuda. Because these are small economies, diversifying sources of growth and revenue is difficult, which makes them particularly vulnerable to trade volatility”, saidFrancisco Carneiro, World Bank Lead Economist for the Caribbean.

The authors lay out key priorities to promote sustainable growth in the Caribbean and other small economies:

  • Deeper regional integration to allow cost sharing and risk pooling would promote stable growth.Small economies often lack the resources to make large public investments. Investing in shared public services, such as a regional transportation infrastructure, would allow cost pooling and improve connectivity in the region. The Caribbean Catastrophe Risk Insurance Facility is an example of effective and attractive risk pooling mechanism able to mobilize emergency funds within the first two weeks of a disaster.
  • Counter-cyclical fiscal policy can help mitigate the impact of trade volatility in the OECS. Adopting fiscal responsibility laws and fiscal rules is key for these countries, allowing them to save more during good times in case natural disasters or economic shocks occur. Grenada is setting the example in the region and recently adopted a medium-term fiscal framework anchored on clear spending rules.
  • A stronger financial sector remains a priority, particularly for Eastern Caribbean countries. A new Banking Act to improve banking supervision and future consolidation has been passed, which is an important step to improve access to finance.
Read More
02 Jun
By: ict 0

Staff Statement Discussions For the 2017 ArticleIV Consultation

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

A staff team from the International Monetary Fund (IMF), led by Mr. Marcos Chamon, visited Georgetown during March 6–17 to hold discussions for the 2017 Article IV Consultation. Ms. Srobona Mitra, the FSAP mission chief, joined the concluding meeting. The team met with Finance Minister Winston Jordan, Natural Resources Minister Raphael Trotman, Public Infrastructure Minister David Patterson, Central Bank Governor Gobind Ganga, other senior officials, representatives from the private sector, the opposition party, labor unions, and other stakeholders.


Guyana’s economy continued to expand, although growth was uneven. In 2016, subdued agricultural commodity prices and adverse weather conditions led to a contraction of agriculture, with negative spillovers to manufacturing and services. Additionally, delays in public investment remained a drag on construction. Nevertheless, GDP was buoyed by very large increases in gold output, including from new mines, with total real GDP increasing by 3.3 percent despite a contraction in non-mining GDP. In 2017, the mission projects real economic growth of 3.5 percent driven by an increase in public investment, continued expansion in the extractive sector, and a recovery in rice production. Despite weather-related shocks to food prices and excess demand during Guyana’s Golden Jubilee, inflation remained subdued at 1.5 percent at end-2016, and is expected to be around 2.5 percent at end-2017.

Increased exports of gold and improved terms of trade helped Guyana achieve a current account surplus. In 2016, the current account balance improved to 3.5 percent of GDP from a 5.7 percent deficit in 2015, reducing the overall BOP deficit. Reserve coverage remained at about 3.5 months of imports. The anticipated start of oil production in 2020 will provide a significant boost to exports and official reserves in the medium-term.

The fiscal deficit widened relative to 2015, but was smaller than budgeted. The 2016 nonfinancial public sector deficit is estimated at 2.9 percent of GDP, lower than the budgeted 5.5 percent. Despite slower than expected growth, fiscal revenue increased due to improvements in tax administration and higher royalties from the mining sector. Expenditure increased less than projected mostly due to lower than budgeted public investment. In 2017, the deficit is projected to increase to about 7 percent of GDP, due in part to delayed capital spending from 2016 and the reclassification of subsidies to state owned enterprises as financing instead of revenue to the receiving enterprise.

The mission welcomed the authorities’ plans to establish a comprehensive legal framework for managing oil wealth. The authorities are preparing draft legislation for a fiscal regime for oil revenues, and a sovereign wealth fund. The IMF stands ready to provide technical advice in these areas. The mission commended the authorities for refraining from non-concessional external borrowing against future oil revenue and urged them to continue to maintain a prudent external debt stance. The mission encouraged the authorities to continue to strengthen public procurement and public investment management in line with international best practices. Improving the appraisal, selection and execution of projects could enhance the efficiency, timeliness and quality of public investment.

Fiscal consolidation would help slow debt accumulation before the onset of oil revenues. The debt-to-GDP ratio is projected to reach 61 percent of GDP by 2019. However, debt sustainability risks remain moderate. Authorities noted that the debt to GDP ratio will decline rapidly after the start of oil production, dropping to under 50 percent by 2020. The mission recommended fiscal adjustment to safeguard against downside risks. The adjustment could be achieved by curtailing the growth of current expenditure, supported by public enterprise reform. The mission welcomed the VAT reform which broadened the tax base while reducing the rate from 16 to 14 percent, and encouraged authorities to continue to strengthen tax administration. The mission also welcomed the authorities’ interest in issuing a long-term domestic bond to substitute for short-term domestic financing, and help develop capital markets. The mission stressed the importance of settling government balances at the Bank of Guyana (BoG). Going forward, authorities are encouraged to consolidate government accounts at the central bank and establish a Treasury Single Account in line with international best practices.

Sustaining growth hinges upon improvements to the business climate, private sector confidence, reinvigorating construction activity and productivity-enhancing reforms in key sectors, including agriculture. The mission welcomed the progress in liberalizing the communications sector, and the authorities’ plans to increase the contribution of low cost renewables to the energy matrix, improve transportation links, and modernize the payment system. Addressing these long-standing structural impediments will stimulate construction, help raise productivity in traditional sectors, facilitate diversification into higher added-value activities, and make growth more inclusive. The mission encouraged the authorities to press ahead with the overhaul of the sugar industry, while being mindful of the large social impact and providing a safety net to protect those affected by that process.

The monetary policy stance should remain accommodative given low inflationary pressures and weakness in economic activity. However, pass-through from the VAT reform to inflation should be closely monitored. Guyana remains vulnerable to external shocks due to its dependence on imported oil and the concentration of exports on a few commodities. The mission noted the recent increase in exchange rate flexibility, which should facilitate adjustment to external developments, and safeguard reserves. The inter-bank foreign exchange market appears segmented and illiquid, and could be further developed, including by enhancing the transparency of market activity. The mission recommends that any official foreign exchange purchases and sales use a market mechanism similar to the one used for auctioning treasury bills.

This year’s consultation included an in-depth assessment of Guyana’s financial sector under the IMF and the World Bank’s Financial Sector Assessment Program (FSAP). 
Key findings include:

  • The financial oversight framework continues to be strengthened. The authorities have introduced a more structured approach to supervision, expanded the supervisory and regulatory perimeter, and drafted a Crisis Management Plan. The FSAP recommended making supervisory oversight, from routine supervision to intervention and resolution, internally consistent. The authorities are already taking steps in this direction.
  • Weak activity in a few key sectors led to a notable increase in Nonperforming Loans (NPLs), and a decline in private credit growth. While banks’ reported capital adequacy ratios and profitability are high, slow collateral recovery, unrecorded related-party exposures and loan misclassifications account for inadequate provisioning. The more timely and effective enforcements recently initiated by the BoG must be continued to address these supervisory gaps.
  • The BoG’s supervisory guidelines should be revised to eliminate reduced provisioning requirements for “well-secured” portions of NPLs. The BoG should also encourage banks to cease use of overdraft lending for commercial purposes; revise the definition of related parties to reflect international standards; and increase the minimum capital requirements from 8 to 12 percent of risk-weighted assets to enhance loss absorbency.
  • Banks’ strong interlinkages with the domestic and regional sovereigns; complex ownership structures; and substantial related-party lending can amplify potential shocks. Stress tests found the banking system resilient to severe shocks, but there are vulnerabilities in some institutions. Credit and deposit concentrations are high, and underpin the need for requiring banks to have contingency funding plans. Systemic risk assessment should track the ownership linkages of banks, private sector balance sheet strength, and house price growth.
  • Operationalizing the crisis management framework will require proper sequencing and substantial amendments of the Financial Institutions Act (FIA). An effective resolution regime and a formal framework for emergency liquidity assistance are prerequisites for a Deposit Insurance Scheme. The FIA should give BoG powers and tools to carry out orderly resolution of banks and prevent Courts from reversing BoG’s actions.
  • Losses of correspondent banking relationships (CBRs) continue to be a major concern for trade finance and remittances. While Guyana has commendably exited the Financial Action Task Force monitoring and concluded a National Risk Assessment, it should continue to strengthen its Anti-Money Laundering and Combating the Financing of Terrorism framework in line with international standards. Stronger supervisory and regulatory regimes, in line with the FSAP recommendations, and regional CBR accounts to help international banks exploit economies of scale could help ameliorate the problem.
  • The FSAP also provided advice on strengthening insurance and pensions supervision, improving access to finance, and upgrading payments and settlement infrastructures to improve financial development.

The IMF Executive Board is expected to discuss Guyana’s Article IV consultation in late April 2017. The mission is grateful to the authorities and other Guyanese stakeholders for their availability, collaboration, and hospitality.

Read More
02 Jun
By: ict 0

Minister of Finance, Hon. Winston Jordan signs agreement with IFAD

Ministry of Finance
2017-03-21
Press Release

Guyana and IFAD signs agreement to invest in Agriculture, strengthen small scale farming in the hinterland and diversify economy  

Government’s mission to reduce poverty in the most vulnerable communities received a sizeable boost today when Minister of Finance, Hon. Winston Jordan and the International Fund for Agricultural Development (IFAD) signed a financial agreement to transform the lives of 30,000 people in Guyana’s hinterland. The Hinterland

Environmentally Sustainable Agricultural Development Project referred to as the ‘Hinterland Project’ will operate in Region 9 as well as Mabaruma and Moruca in Region 1. It will initially only focus on the North Rupununi in order to capitalize on current government efforts to exploit the agricultural potential of the area but will also be conducted in Central and South Rupununi, areas most affected by climate change.

At the signing, Minister Jordan said, “The Guyanese economy has remained un-diversified. Guyana’s “bread and butter sector”, the agricultural sector, also remained unchanged with heavy reliance on sugar and rice (so) this operation is expected to boost the Government’s efforts in diversifying the economy as well as open up new markets and new trade agreements for Guyana.”

The agreement was signed today at IFAD headquarters in Rome by Winston Jordan, Minister for Finance of Guyana and Kanayo F. Nwanze, President of IFAD.

The total cost of the project is US$11.1 million of which IFAD is providing a $7.9 million loan and a $500,000 grant. Other co-financiers are: the Government of Guyana ($2.4 million) and the beneficiaries themselves ($300,000).

IFAD’s Country Programme Manager for Guyana, Ladislao Rubio said, “Guyana has set an ambitious goal of exploiting the country’s potential in the agricultural sector and devoting special attention to hinterland areas through the efficient and sustainable use of the country’s natural resources.” He added, “By building social, human and natural capital and addressing climate change and malnutrition issues, the project will help improve resilience to climate change.”

The Hinterland Project will: 1. Support communities and producer groups within communities to identify investment opportunities and managed economic and climate risks, some 4500 households will benefit. 2. Develop business plans and investment and income generating opportunities and increase market access:  Some 2000 households will be targeted. 3. Facilitate increased access to assets that build community resilience and create enabling productive environment such as water, energy and ICT and ensure that poor indigenous and non-indigenous rural households living in the Project area, whose livelihoods are threatened by economic and environmental risks, are direct beneficiaries. At least 15 per cent of these households will be female-headed households – a reflection of the reality in the Project area.

The Lead agency for the implementation of the Hinterland Project will be the Ministry of Agriculture through its Agriculture’s Sector Development Unit (ASDU) and will be assisted by the Ministries of Indigenous Affairs, Natural  Resources & Energy, Communities and Business and other government agencies, Non-Governmental Organizations, Community-Based Organizations (CBOs) and local educational institutes.

IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN’s food and agriculture hub. It invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1987, IFAD has provided over US$22.9 million in financing for three rural development initiatives, reaching over 12,000 households.

Read More