Reducing rural poverty through enhanced financial services, marketing and value chain development
A new US$18.95 million IFAD-supported programme in Moldova will create job opportunities and income-generation opportunities through on and off-farm productive activities to reduce rural poverty in the country. The programme will also enhance Moldova's horticultural value chain. The Rural Financial Service and Marketing Programme (RFSMP) will be financed by the government of Moldova and IFAD under a loan agreement signed at IFAD headquarters today by Lennart Båge, President of IFAD, and Gheorghe Rusnac, Extraordinary and Plenipotentiary Ambassador of the Republic of Moldova to Italy.
IFAD will extend a loan of US$12.7 million and a grant of US$0.53 million, representing 70 percent of the total cost, on highly concessional terms. The government of Moldova, partner financial institutions (PFIs) and the beneficiaries of the programme will provide the remaining 30 percent.
The programme will create enabling conditions for the poorest members of the rural communities to increase their incomes. It will support targeted rural financial services, develop the rural commercial infrastructure and provide extension services of knowledge and technical expertise required for participation in national and international markets with the aim of making profits. Although the programme will be covered nationally, its investments will be aimed at areas with the highest concentrations of rural poor people. Women and young people will have equal access to programme benefits.
According to Abdelkarim Sma, IFAD's Country Portfolio Manager for Moldova, "the project's innovative value chain development (VCD) approach will not only help small farmers increase the returns and income from agricultural production, but will also increase the number of farmers engaged in commercial agriculture." He added that "the ability of the target group of beneficiaries to benefit from the value chain and infrastructure development will be sustained through high levels of investments in the non-farm rural economy and through improvements in the capacity of PFIs and business providers to provide sustainable services in rural areas."
With this project, IFAD will have financed four projects in Moldova for a total commitment of USD48.2 million.
source: IFAD
