The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations since 1977, has loaned USD 25 million to the Republic of Mali for the establishment of the Rural Microfinance Programme. The programme will consolidate three existing microfinance networks in the central-western part of Mali, comprising 94 credit unions, and support capacity-building and institutional development within the networks.
According to the IFAD website, “the principal objective of the programme is to provide poor rural people with sustainable access to financial services that fit their needs and, specifically, to promote the development of appropriate mechanisms and products and build capacity in order to achieve sustainability.” As part of the project, IFAD will link microfinance institutions (MFIs) to Mali’s banking system. The programme, worth a total of USD 30.8 million, will be co-financed by the UN Capital Development Fund (UNCDF) (USD 1 million) and the UN Development Programme (UNDP) (USD 0.5 million).
By: Stefanie Rubin, Research Assistant
About IFAD:
The International Fund for Agricultural Development (IFAD), an agency of the United Nations, was established in 1977 as an outcome of the 1974 World Food Conference. IFAD is dedicated to eradicating rural poverty in developing countries by focusing on country-specific solutions.
Since 1978, IFAD has invested USD 10.8 billion in 805 projects and programmes. Another USD 24.8 billion has been contributed in cofinancing from governments, project participants and multilateral, bilateral and other donors.
About IFAD in Mali:
From 1982 to 2009, IFAD has financed 11 rural development programs and projects in Mali for a total cost of USD 317.8 million, with IFAD contributing USD 154 million in loans. Four programs are currently ongoing: the Sahelian Areas Development Fund Programme, the Northern Regions Investment and Rural Development Programme, Kidal Integrated Rural Development Programme and Rural Microfinance Programme.
IFAD’s country strategic opportunities program (COSOP) for Mali aims to improve the living conditions of rural people, including agro-pastoralists, small farmers, livestock breeders and fishers. The program focuses on the Sahelian and Sahelo-Saharan zones, which are priority areas for the government.
Additional Resources:
Source Article: IFAD Press Release: “IFAD Makes US$25.04 Million Loan to Mali to Consolidate Microfinance Services for Poor Rural People,” http://www.ifad.org/media/press/2009/63.htm
IFAD: http://www.ifad.org/
IFAD in Mali: http://operations.ifad.org/web/ifad/operations/country/home/tags/mali
Rural Microfinance Programme: http://operations.ifad.org/web/ifad/operations/country/project/tags/mali/1441/project%20overview
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