Designed at the request of the government, this programme is a pilot initiative, testing new tools and mechanisms that benefit poor rural communities and help rebuild their trust in the state. It works to empower small-scale farmers, microentrepreneurs and craft workers who have little access to resources but show social, economic and cultural potential. Most of the target population have suffered decades of violence. The programme particularly focuses on supporting women and young people.

The programme covers the entire country. Principal activities are:

• investment in rural microenterprises
• training and capacity-building
• creating linkages among participants for knowledge-sharing purposes

The goal of the programme is to develop rural microenterprises and markets by improving the access of poor communities to financial resources, technical assistance, information and institutions. The programme empowers poor rural people by encouraging their participation in the management of programme resources; helping them to define income opportunities and livelihood strategies and to identify their technical and microfinance service needs. Programme resources managed by locally-elected committees are used to finance microenterprise initiatives proposed by participants.

By the end of 2010, 787 business activities proposed by 487 different microenterprise organizations had been approved for financing. Successful participants use the funds to hire rural technical services to improve their productivity and competitivity. Of the 657 projects already financed, 282 fall into the agricultural sector, 243 into agroindustry, 82 are artisanal, 35 tourism and 15 environmental. The funds go towards a variety of initiatives – learning tours, exchange visits, apprenticeships, training in production, marketing and how to be more competitive and productive.

Microcredit facilities introduced by the programme have been overwhelmingly popular. Originally targeting 2,500 beneficiaries, at the close of 2010 there were 32,453 individuals participating in the microcredit schemes.

The new government has shown strong commitment to this programme by increasing its counterpart funding (for the 2011 budget) by US$3.0 million.

Project website

Source: IFAD