#1Rural Entrepreneurship Development Programme (PRODER) Republic of Burundi - Joseph Rostand Olinga Biwole Country Director, ESA PMD December 6, 2021 JLIFAD FIDA#20 Rural Entrepreneurship Development Programme (PRODER) at a glance Map of the programme area PRODER at a glance Project objective Kirundo Rwanda Kirundo Cibitoke Cibitoke Kayanza Democratic Republic of the Congo Kayanza Bubanza Bubanza Muramvya Muramvya Bujumbura Muyinga Muyinga Ngozi Ngozi Karusi Karuzi Bujumbura- Mairie Ruyigi Gitega Mwaro Ruyigi Bujumbura-Rural Gitega 25 Km Bururi Bururi " Makamba Makamba JLIFAD Investing in rural people Rutana Rutana •Contribute to poverty reduction and improved nutrition and food security for rural people. Cankuzo Cankuzo Project Financing - US$89.4M ⚫IFAD loan: US$10.7M & IFAD DSF: US$42.9M •Government of Burundi: US$7.1M •Beneficiaries: US$3.7M •Financing Gap: US$25.0M United Republic of Tanzania Mainstreaming Commitments ⚫Climate-focused ⚫Nutrition-sensitive •Youth-sensitive Value chain development programme - Phase III (PRODEFI III) Outreach ⚫85,000 HHS (510,000 beneficiaries) •50% women & 50% youth#3Programme structure, outputs and outcomes O.... JLIFAD Investing in rural people Component 1: inclusive development of youth rural enterprises, aims at providing young women and men with a path to join the agribusiness environment with US$36.3M (40.7% of total financing) → 7,840 MSMEs started up or consolidated & 39,000 jobs created Component 2: promotion of a conducive environment for agribusiness will focus on access to land and other assets for food security and agribusiness as well as infrastructure including those necessary for transformation of products and market connectivity with US$40.9M (45.7% of total financing). → Improved food security for 40,000 households & 20 000 ha of land/1000 ha marshlands rehabilitated Component 3: Institutional strengthening for agribusiness & programme coordination will improve the capacities of Ministry of Environment, Agriculture & Livestock and the Programme Management Unit (PMU) to effectively facilitate implementation and contribute to rural transformation in Burundi with US$12.1 (13.5% of total financing). → Revision/adaptation: regulations/texts & Strengthened producer organizations --#4PRODER: rationale and theory of Burundi faces intertwined fragility & development challenges including high levels of poverty in rural areas that justify the need for IFAD support change Project Rationale Challenges to rural development challenges: i. Fragility of the country ii. High youth unemployment and dependency rates iii. Insufficient organization of farmers & limited access to extension & advisory services iv. Degradation of natural resources & agricultural potential and lack of assets for sustainable rural transformation Opportunities Political will for rural development i. ii. Government's political commitment to the fight against youth unemployment iii. External financing available Interventions will promote youth and women's agricultural entrepreneurship along the nutrition sensitive value chains to lift them from the fragility trap. Theory of Change Promote equitable gender participation & representation in all activities & investments to improve productivity & make it more climate-resilient. Incorporate policy support & capacity building activities thus empower the MINEAGRIE to make evidenced-based data driven decisions. Improved nutrition & Strengthened Agri- SME capacity Agri-Business start-up Increased agriculture production & access to improved quality agriculture services → Poverty reduction, Access to markets, Employment creation, Job creation JLIFAD Investing in rural people#5Rural Kenya Financial Inclusion Facility (RK-FINFA) JLIFAD FIDA Sara Mbago-Bhunu Regional Director, ESA PMD December 6, 2021#6Rural Kenya Financial Inclusion Facility (RK-FINFA) Project objective RK-FINFA at a glance • To increase rural financial inclusion and green investments by agriculture value chain stakeholders, leading to equitable employment opportunities, innovative and resilient production systems, and increased incomes for smallholders, poor and marginalised rural households, women and youth. Components • Component 1: Technical Support and Innovation Services • Component 2: Rural Investment Instruments • Component 3: Enabling Rural Finance Environment and Project Coordination Project Financing - US$134 M • IFAD Loan: US$22M (of which climate finance: US$12.77M) • Government of Kenya: US$24M ⚫PFIS: US$85.75M • Co-financing non-government IPs: US$2.3M Outreach Map of the programme area Rural Kenya Financial Inclusion Facility (RK-FINFA) First counties of implementation Nationwide fully operational project area South Sudan Uganda Love Tickard Ethiopia Madera W Somalia Trans Nzos Bungoma Matt Sus Cond Sar Kakamega LAREN Saya Nanc Mar ndary Lake s Nakuru Nyer Knyga Bong Embe I041 Maon Thaake-Nin Garson Karbs Machakos Khal Tana River Naros Nairobi United Republic of Tanzania Lamul . 190,000 rural HHs • 50% women & 30% youth JLIFAD | FIDA 100 Man#7Mainstreaming Commitments 想 @ Youth Sensitive Climate Finance Gender Mainstreamed ✓ Supporting jobs creation by & for young people Increasing employment opportunities though access to financial literacy & business development skills ✓ US$12.77M (58% of total IFAD project costs) ✓ Adaptation finance Green lending products ✓ Specific financial products & trainings ✓ Financial support to women- owned MSMES ✓ 50% representation quotas ✓ Gender Action Learning System JLIFAD | FIDA#8RK-FINFA Rationale & Features Project Rationale Increasing unmet demand for rural & agriculture finance and the core development objectives shared by IFAD & the Gok on rural & agricultural development; ➤ Effective transformation of rural sector could be achieved through: (i) (ii) a substantially increased private sector focus in the development & investments of the sector; improvements in the productivity of smallholder operations through modern cultivation methods & climate smart technologies, linking farmers to well-operating value chains & building farmer capacity to increase their readiness for innovation and diversification. RK-FINFA: one of the instruments aiming to ensure that appropriate & adequate financial services would be available for the planned transformation & growth of the rural economy. Theory of Change Key Development Problem: Limited investment flow hinders modernization and improved income flows in the smallholder and agribusiness sectors, despite high development potential and significant positive impacts on rural livelihoods and food systems development, poverty reduction and climate change resilience RK-FINFA Solutions: (i) Technical Support and Innovation Services (TSIS) both to PFIs & their potential pipeline of clients; (ii) Rural Credit Guarantee Scheme to help reduce risks, unlock private capital flows, & to introduce rural outreach innovations; and (iii) Green Financing Facility to provide liquidity to finance green investments of rural MFBS & SACCOS. JLIFAD FIDA Expected Results: (i) Stronger rural financing support institutions; (ii) Increased rural investments; (iii) employment creation; (iv) higher rural incomes; and (v) gender equality in finance.#9Programme for Inclusive Agricultural Transformation (DEFIS) - Republic of Madagascar Ibrahim Bamba Country Director, ESA PMD December 6, 2021 JLIFAD FIDA#10Programme for Inclusive Agricultural Transformation (DEFIS) Map of the programme area Melaky Menabe Atsimo Andrefana Boeny Bongolava. Androy Betsiboka Sofia DIANA Alaotra Mangoro Analamanga Itasy Vakinankaratra Amoronimania Atsinanana Matsiatra Ambony Vatovavy Fitovinany thorombe Anosy JLIFAD | FIDA SAVA Analanjirofp Légende Atsimo Atsinanana W N S Régions AROPA actuelles Régions PROSPERER Sud Nouvelles Régions 0 2550 100 150 200 Kilometers Project objective DEFIS at a glance • Transform family farming through large-scale adoption of high- performing, resilient production systems and integrate family farms into profitable value chains Components • • Component 1. Improving the productivity and resilience of crop and livestock farming systems • Component 2. Development of inclusive value chains Component 3. Institutional support and programme coordination Project Financing - US$250.0M ⚫IFAD 12: US$83.5M & IFAD 11: US$53.0M ⚫OFID: US$20.0M •Green Climate Fund: US$53.9M (to be mobilized) •Government of Madagascar: US$25.3M •Beneficiaries: US$14.3M Mainstreaming Commitments •Climate-focused ⚫Nutrition-sensitive Outreach 320,000 HHS (1.6M beneficiaries) •30% women & 30% youth#11Key Implementation approach Approach Structuring investments in agricultural development Hub (water management, seed, extension, basic market infrastrucutre, contract farming) Scaling up results ➤ Strengthening Farmers' Organizations capacities at various levels initiated by IFAD -funded AROPA Contract farming facilitated by the regional Chamber of Commerce initiated by PROSPERER Concentration of investments for value chain development following the lead of IFAD-AD2M Increasing the capacity of Fonds de Development Agricole in collaboration with operations funded by EU and Agence Française de Développement Working with decentralized institutions Demand driven investments by producers' Organizations Via Fonds de Develoment Agricole JLIFAD | FIDA Eight priority value chains#12Main Achievements ✓ Irrigated land rehabilitated completed on 7,618 ha (22% target); construction under way on 1,608 ha of irrigated areas; ✓ 280 MT of certified seeds & 385,000 coffee seedlings produced by FOS ✓ Delivery of agricultural advisory & extension services to nearly 63,000 family farms through livestock & farmer field schools ✓ Technical & organizational capacity of 1,789 FOS strengthened ✓ 33 contractual arrangements negotiated between FOs & PS firms (13% target) ✓ On-going policy engagements for the reform of the chamber of agriculture, law on contract farming, strategy of agriculture service to producers, seed strategy & investments in basic infrastructure (roads in the South) Emerging Lessons JLIFAD FIDA Selected Results Need for intensified capacity-building in decentralized rural institutions; Need to accelerate planned investments in water management infrastructure, considering potential of each targeted region; ➤ Use of performance triggers, as policy engagement tools have incentivized Government of Madagascar to introduce policy reforms (e.g. sustainable funding options for FDA & more investments in roads in the south); ➤ Beneficiaries who are resilient to the impact of the ongoing drought have access to irrigated areas, multiservice water points, agro-ecological block, water harvesting technologies (REEPS), access to small ruminants, technologies for processing cassava into gari, nutrition-sensitive activities (e.g. home gardens)#13Thank You JLIFAD FIDA