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Financial accord gives a boost to Mali's small farmers, agriculture sector

10 luglio 2018 | 17.10
LETTURA: 2 minuti

Financial accord gives a boost to Mali's small farmers, agriculture sector

Over 440,000 smallholders in Mali will soon have better access to rural financial services under an agreement for a $105.5 dollar project inked by the International Fund for Agricultural Development and the government of Mali, IFAD said on Tuesday.

The accord will provide financial support to the Inclusive Finance in Agricultural Value Chain Project (INCLUSIF), to be implemented in five regions of the country (Koulikoro, Sikasso, Kayes, Segou and Mopti), the UN agency said.

Through a range of financial products, including savings, credit and micro-insurance, the project will enable small farmers to invest in the infrastructure and equipment needed to help them produce, store, process and better market their products, IFAD said.

Currently, only one-fifth of Malians in rural areas have access to financial services, and small and medium-sized enterprises have difficulty in getting credit. In 2016, less than 1 percent of bank credit went to the agricultural sector, IFAD stated.

“INCLUSIF’s vision is to promote the sustainable transformation of agricultural value chains by improving financial inclusion for disadvantaged groups, such as women and young people, and their organisations,” said Philippe Remy, IFAD country programme manager for Mali.

The project will bring 440,000 smallholders and 360 agricultural professional organisations into the banking system, Remy underlined.

Over 40,000 producers will have access to financing for climate change adaptation and INCLUSIF will also develop profitable and sustainable relationships with the private sector and the financial system, said IFAD.

The project will be co-financed by the Danish government ($21.6 million), rural finance institutions ($15.5 million), the ABC Microfinance (Babyloan) ($0.4 million), the private sector ($5.4 million), the government of Mali ($4.6 million) and by stakeholders themselves ($1.9 million), IFAD said.

IFAD said it is making a $22.9 million loan and $22.9 million grant to the project while a funding shortfall of $10.4 million will be covered from future IFAD financing rounds or by other potential co-financing partners.

The new financial agreement was signed by IFAD president Gilbert F. Houngbo and Mali's economy and finance minister Boubou Cisse.

IFAD has since 1982 invested $274.9 million in 14 rural development programmes and projects in Mali at a total cost of $630 million, directly benefitting over 516,000 rural households.

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