The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, has provided a USD 19.5 million loan and USD 19.5 million grant to Ethiopia to support pastoral and agropastoral households. The project, which will be implemented over five years, is the second phase of a partnership between Ethiopia’s pastoral communities, local and federal governments, IFAD and the International Development Association (IDA) – an arm of the World Bank.
This phase will increase the project area from 32 districts to 57 districts in the Afar, Oromia, Somali and Southern regions. The project intends to improve health, sanitation, safe drinking water, food and basic education. It also aims to support financial access and will encourage the establishment of women-owned pastoral rural savings and credit cooperatives.
By: Stefanie Rubin, Research Assistant
About the International Fund for Agricultural Development (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 programs. Another USD 24.8 billion has been contributed in co-financing from governments; project participants; and multilateral, bilateral and other donors.
About the International Fund for Agricultural Development (IFAD) in Ethiopia:
From 1980 to 2009, the International Fund for Agricultural Development (IFAD) has financed 15 programs and projects in Ethiopia for a total cost of USD 755.8 million, with IFAD contributing USD 287.9 million in loans. Under the Debt Initiative for Heavily Indebted Poor Countries (HIPC), IFAD has provided USD 28 million in debt relief to Ethiopia.
There are currently five ongoing IFAD operations in Ethiopia: the Community-based Integrated Natural Resources Management Project, Pastoral Community Development Project II, Participatory Small-scale Irrigation Development Program, Agricultural Marketing Improvement Program, and Rural Financial Intermediation Program.
According to its website, “IFAD-supported initiatives focus on responding to the need to break the vicious cycle that links land degradation, low agricultural productivity and rural poverty.”
About the International Development Association (IDA):
Established in 1960, IDA is the arm of the World Bank that provides interest-free credits and grants for programs in the world’s poorest countries. Loans from IDA have repayment terms stretching over 35 to 40 years, including a 10-year grace period. IDA also provides grants to countries at risk of debt distress.
IDA provides assistance to 79 of the world’s poorest countries, 39 of which are in Africa. From 1960 to 2009, IDA has provided USD 207 billion in credits and grants, with about 50 percent directed to Africa.
Additional Resources:
Source Article: Microfinance Focus: “IFAD provides $39 million to help pastoral community in Ethiopia,” http://www.microfinancefocus.com/news/2009/12/12/ifad-provides-39-million-to-help-pastoral-community-in-ethiopia/
IFAD: www.ifad.org
IFAD in Ethiopia: http://www.ifad.org/english/operations/pf/eth/index.htm
IDA: http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,menuPK:51235940~pagePK:118644~piPK:51236156~theSitePK:73154,00.html
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