THE Government of Guyana and the International Fund for Agricultural Development (IFAD) signed a US$11.1M agreement to boost small-scale farming in hinterland communities.
This move is expected to positively impact the lives of more than 30,000 residents in Region Nine as well as Mabaruma and Moruca in Region One. The financial agreement was signed on Tuesday by the Minister of Finance, Winston Jordan, and IFAD President Kanayo Nwanze at IFAD headquarters in Rome.
IFAD is providing a US$7.9 million loan and a US$500,000 grant, while the Guyana Government is investing US$2.4 million in the project. The beneficiaries will also be contributing US$300,000.
The Hinterland Environmentally Sustainable Agricultural Development Project, also referred to as the ‘Hinterland Project’ will initially focus on the North Rupununi in order to capitalise on current government efforts to exploit the agricultural potential of the area, but will also be conducted in Central and South Rupununi, areas most affected by climate change.
At the signing, Minister Jordan said, “The Guyanese economy has remained undiversified. Guyana’s “bread and butter sector,” the agricultural sector, also remained unchanged with heavy reliance on sugar and rice, [so] this operation is expected to boost the Government’s efforts in diversifying the economy as well as open up new markets and new trade agreements for Guyana.”
He posited that Guyana’s small business sector has remained largely under- developed with many small-scale farmers still utilising unsophisticated tools.
Despite these challenges, however, Minister Jordan said growth in the agricultural sector has always been seen as an important element in the plan to reduce poverty, develop financial resilience and to provide the good life for all Guyanese.
He said the multi-million dollar project is expected to significantly boost Government’s efforts in diversifying the economy. Through the project, small farmers who depend heavily on traditional crops, will widen their scope to include the farming of non-traditional and ‘in-demand’ crops, with high value- added potential. This move, the Government strongly believes, will open up new markets and new trade agreements for Guyana.
“The impending loan will also support Government’s drive to link the coastland to the hinterland by opening up new farming communities in the hinterland region, Region Nine, and the higher interior lands of Region One,” the Finance Minister added.
IFAD’s Country Programme Manager for Guyana, Ladislao Rubio, said, “Guyana has set an ambitious goal of exploiting the country’s potential in the agricultural sector and devoting special attention to hinterland areas through the efficient and sustainable use of the country’s natural resources.”
According to him, the project will help to improve the communities’ resilience to climate change through the fostering of social, human and natural capital, while addressing the issues of climate change and malnutrition.
Under the project, communities and producer groups will receive support in the identification of investment opportunities. This move is expected to benefit some 4500 households.
Additionally, the project will see the development of business plans and investments and income-generating opportunities and increased market access. Under this aspect of the hinterland project, approximately 2000 households are being targeted.
It will also facilitate increased access to assets that build community resilience and create enabling productive environments such as water, energy and ICT and ensure that poor, indigenous and non-indigenous rural households living in the project area, whose livelihoods are threatened by economic and environmental risks, are direct beneficiaries. At least 15 per cent of these households will be female-headed households – a reflection of the reality in the project area.
The lead agency for implementation of the Hinterland Project will be the Ministry of Agriculture through its Agriculture Sector Development Unit (ASDU) and will be assisted by the Ministries of Indigenous People’s Affairs, Natural Resources & Energy, Communities and Business and other government agencies, Non-Governmental Organisations, Community-Based Organisations (CBOs) and local educational institutes.
IFAD is an international financial institution and a specialised United Nations agency based in Rome – the UN’s food and agriculture hub. It invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1987, IFAD has provided over US$22.9 million in financing for three rural development initiatives, reaching over 12,000 households.