The International Fund for Agricultural Development (IFAD) formally approved US$6M for the Rural Enterprise and Agricultural Development Project (READ) for Guyana at a meeting at its headquarters in Italy last Thursday.
According to a press release the IFAD Board considered the project following negotiations led by Agriculture Minister Robert Persaud. The office informed the minister that it had approved the project while he was attending the United Nations Conference on Climate Change in Bali, Indonesia. The release said US$3M of the IFAD sum will be in the form of grant resources while the remainder will not attract an interest rate but a minimum service charge which will be paid over 40 years with a 10-year grace period.
Persaud said the approval of the READ facility will complement the recent approval of a US$20.9M loan by the Inter-American Development Bank to support Guyana’s Agricultural Export Diversification initiatives. This is the first time that two major financing institutions are supporting the country in its agricultural diversification drive with such massive injections of resources. This type of support is essential for transforming the country’s economy and enhancing the prosperity of its farming communities, the minister said.
Persaud added that the READ Project is intended to develop rural farming communities through matching grants and other unique features. It aims to increase the incomes of poor, rural households particularly those headed by women and other vulnerable groups. Its objectives also include strengthening producers and local farmers’ organisations to support the growth and sustainability of enterprises and the development of beneficiary communities. On the other hand, the agricultural diversification programme will establish the necessary infrastructure to expand farming communities by creating market linkages to support the export of non-traditional crops and other agricultural products, livestock and aquaculture which have a strong marketing potential.
The release said the READ and the diversification programme are expected to widen the country’s agricultural base. The project will emphasise linking producers to market demand as a means of increasing agricultural and income diversification.
