MICROCAPITAL BRIEF: International Fund for Agricultural Development (IFAD) Launches Rural Enterprise Finance Project (REFP) to Expand Mobile Banking, Financial Literacy Training in Mozambique

The UN’s International Fund for Agricultural Development (IFAD) recently launched the Rural Enterprise Finance Project (REFP), aimed at improving access to national and regional markets for people in rural Mozambique. The project includes elements such as: (1) developing digital financial services that are specific to agricultural and other rural needs; (2) entrepreneurship training; and (3) boosting financial literacy. The project will cost USD 72.5 million, of which USD 62 million will be paid by IFAD, USD 5 million will come from the private sector, USD 4.3 million is to be paid by the government of Mozambique and USD 1.1 million will come from fees charged to the beneficiaries themselves.

Robson Mutandi, IFAD’s representative and country director to Mozambique, commented, “This new project supported by IFAD will focus on the poor and disadvantaged to ensure that rural finance services reach the underserved communities and financially excluded groups.”

Established in 1977, IFAD is governed by 176 member nations with the goal of eradicating rural poverty in developing countries. The organization provides grants and loans to research organizations, governments, private firms and civil society organizations, with a focus on agricultural and food supply issues. As of year-end 2018, IFAD has total assets of USD 9.29 billion. During that year, it approved USD 869 million in grants and USD 74 million in loans.

By Eugene DeCosse, Research Associate

Sources and Additional Resources

IFAD press release
https://www.ifad.org/en/web/latest/news-detail/asset/41225496

IFAD financial indicators
https://www.ifad.org/en/financial-indicators-and-trends

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