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IFAD to invest in stimulatinig inclusive economic growth in Tajikistan

Business Materials 9 February 2018 12:48 (UTC +04:00)
IFAD to invest in stimulatinig inclusive economic growth in Tajikistan

Baku, Azerbaijan, Feb.9

By Nigar Guliyeva - Trend:

The International Fund for Agricultural Development (IFAD) and Tajikistan signed a financing agreement to reduce poverty and stimulate inclusive economic growth in poor rural communities, the IFAD said in a message.

The agreement for the Community-Based Agricultural Support Project was signed by Gilbert F. Houngbo, President of IFAD, and Qahhorzoda Faiziddin Sattor, Minister of Finance, Tajikistan.

The total cost of the project is $39.3 million, including a $15.3 million loan and a $15.3 million grant, each from IFAD. The government contribution is estimated at $4.9 million while approximately $1.6 million will be provided by the beneficiaries. In addition, a contribution of about $1.9 million is expected from private service providers operating in the field of agricultural mechanization.

The Food and Agriculture Organization's (FAO) co-financing of $0.25 million through the Technical Cooperation Programme will contribute towards technical assistance and training of machinery service providers. The project will be implemented over six years.

The project will be implemented in Devashtich, Dusti, Jaihun, Norak, Rasht, Shahriston and Tajikobod districts, where poverty levels are high and there is potential for agriculture development. The project aims to reach over 48,000 households.

The project will address these problems while supporting and in alignment with, key priorities of the Government for ensuring food security and nutrition. The project will incorporate a strategy to ensure women's inclusion in community development and equitable access to opportunities.

In Tajikistan, agricultural productivity falls far below its potential, especially for key smallholder staples such as wheat, potatoes and apples. A primary cause is the lack of access to modern technologies, notably farm equipment and machinery.

Since 2008, IFAD has financed four rural development projects in Tajikistan, investing $80 million out of a total $94 million in project costs. These projects and programmes have benefitted over 288,000 rural households.

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