IFAD in Honduras

IFAD loans and grants have supported the government’s investments in poverty reduction programmes since 1979. Before 1998, when Hurricane Mitch devastated the country, IFAD was almost the only institution investing in rural development and poverty alleviation in Honduras. The organization designed one of the first projects to be implemented after the disastrous hurricane: the National Fund for Sustainable Rural Development Project (FONADERS). IFAD funding in the country adds up to a commitment of about US$111.6 million.

IFAD loans have helped finance seven projects, two of which are ongoing. All of the projects have been carried out in areas where rural poverty is most extreme. The first projects formed the basis of pioneering experiences in various fields, such as sustainable agriculture, development among indigenous peoples and construction of rural roads. Subsequent projects have supported national programmes by participating in their design and financing. The current Country Strategic Opportunities Programme (COSOP) covers the period from 2007 to 2011.

IFAD's strategy in Honduras

In nearly 25 years of operations in Honduras, IFAD has gained experience and considerable country-specific development expertise. IFAD has focused primarily on extremely poor hillside areas, supporting activities to build the capacities of poor communities and provide them with access to land, markets and financial and other services. It has developed a funding mechanism for financing local initiatives.

IFAD's strategy for Honduras is consistent with the country's PRS and supports the government's efforts to meet the targets of its agricultural sector policy.

IFAD's overall objectives are to ensure that poor people and especially women and other vulnerable groups have better and more sustainable access to natural resources, effective production services, a broad range of financial services, competitive markets and opportunities for employment and enterprise development. IFAD projects will continue to target steeply sloping hillside areas. Specific objectives include:

• helping rural communities participate in the market economy by improving their access to technologies and investments for agricultural and non-agricultural activities
• helping integrate small-scale producers into agricultural and forestry value chains
• improving access to assets and opportunities such as technology, investments and technical services for processing and diversifying products
• strengthening the organizational capacities and bargaining power of grass-roots organizations
• building the capacity of small farmers' organizations to manage and administer business ventures
• helping establish linkages with the private sector
• strengthening indigenous peoples’ organizations and supporting them as they voice the particular needs and concerns of their communities
• helping build the capacity of local governments to facilitate land registration and improve the efficiency and coverage of rural savings and loans associations

Read the Country Strategic Opportunities Programme

Source: IFAD