Benin and IFAD together to boost food and nutrition security and create jobs for rural populations Rome, February 8, 2019 – Over 51,000 vulnerable rural households in Benin will benefit from a USD 104.4 million project that aims to reduce rural poverty through an agricultural value chain approach. This project will also help reduce food imports and improve the competitiveness of smallholder farmers’ products in domestic and external markets. The financing agreement for the Agricultural Development and Market Access Support Project (PADAAM) was signed today in Rome by Gilbert F. Houngbo, President of IFAD, and Romuald Wadagni, Minister of economy and finance of the Republic of Benin. IFAD will help finance the project with a loan of USD 15.5 million and a grant of USD 15.5 million. The project will be co-financed by the OPEC Fund for International Development (USD 10 million), the private sector (USD 5.6 million), financial institutions (USD 1.3 million), the Government of Benin (US $ 9.8 million), and beneficiaries (US $ 3.3 million). The financing gap of US $ 43.6 million will be covered by other sources of financing or by future allocations of IFAD resources to Benin. Agriculture is a key sector of the Beninese economy. It provides 70% of jobs and contributes 32.7% of GDP and 75% of export earnings. The new project will increase agricultural production and productivity, and improve the marketing of rice, maize and cassava. It is in line with the Government’s strategy which aims to reduce imports of food products and promote the creation of added value for enhanced competitiveness. PADAAM will intervene in the departments of Atlantique, Collines, Couffo, Mono, Ouémé, Plateau and Zou. It aims to create jobs and improve the incomes of smallholder farmers in particular women and young people living in the project areas. At least 40% of the project participants will be women and 30% young people. In addition, it will promote measures to strengthen the resilience of smallholder farmers to climate change and set up an insurance system intended mainly for the target groups of the project. In addition, the project will also help improve the availability and quality of productive and marketing support infrastructure. Thus, 2,500 hectares of lowlands will be developed, 91 storage warehouses will be rehabilitated or built and 250 kilometers of agricultural tracks will be created. Since 1978, IFAD has helped finance 13 rural development programs and projects in Benin, investing US $ 247.2 million out of a total cost of US $ 467.1 million. These projects and programs have directly benefited more than 469,400 rural Beninese households. Press release n °: IFAD / XX / 2019 IFAD has supported rural people for 40 years, empowering them to reduce poverty, increase food security, improve nutrition and build resilience. Since 1978, IFAD has provided approximately US $ 20.4 billion in low-interest loans and grants to projects that have benefited some 480 million people. IFAD is an international financial institution and a specialized United Nations agency headquartered in Rome, the United Nations’ food and agriculture hub. Learn more about IFAD: https://www.ifad.org/fr/
