MICROCAPITAL BRIEF: International Fund for Agricultural Development (IFAD) Loans $29m to Government of Uganda in Effort to Bring Financial Inclusion, Improved Nutrition to 576k Rural Households

The International Fund for Agricultural Development (IFAD), an agency of the United Nations that aims to alleviate poverty in rural areas, recently extended a loan of USD 29 million to the government of Uganda to support the Project for Financial Inclusion in Rural Areas (PROFIRA). The project aims to help 576,000 rural households that are financially excluded and also increase financial access for rural communities at large. The project will last seven years and is expected to increase the income of participants, improve nutrition and food availability, and generally reduce the vulnerability of the target rural populations.

According to Michel Mordasini, the Vice President of IFAD, “the supply of financial services to rural areas in Uganda is still very limited, falling significantly short of demand. In these areas, community-based savings and credit groups are the only financial intermediaries responding to financial services demands of the rural people. The financing agreement we are signing today is tangible evidence of our ongoing joint collaboration with the Government of Uganda to alleviate poverty.”

IFAD disbursed new commitments of USD 2.7 billion during 2013, bringing its portfolio of ongoing projects to USD 8.3 billion. IFAD operates in 97 countries as of that year.

By Ananya Tiwari, Research Associate

About United Nations International Fund for Agricultural Development (IFAD): The International Fund for Agricultural Development (IFAD), an agency of the United Nations, was established in 1977 as an outcome of the 1974 World Food Conference. IFAD is dedicated to eradicating rural poverty in developing countries by focusing on country-specific solutions. IFAD disbursed new commitments of USD 2.7 billion during 2013, bringing its portfolio of ongoing projects to USD 8.3 billion. IFAD operates in 97 countries as of 2013.

Sources and Additional Resources

[1] Busiweek, http://www.busiweek.com/index1.php?Ctp=2&pI=2564&pLv=3&srI=68&spI=107&cI=10

MicroCapital, November 27, 2014, IFAD, OPEC Fund for International Development Lend $36m to Support Infrastructure and Rural Financial Support Programme in Armenia, https://www.microcapital.org/microcapital-brief-ifad-opec-fund-for-international-development-lend-36m-to-support-infrastructure-and-rural-financial-support-programme-in-armenia/

MicroCapital, October 11, 2014, Senegal, IFAD Engage Développement International Desjardins (DID) to Research Financial Inclusion in West Africa, https://www.microcapital.org/microcapital-brief-senegal-ifad-engage-developpement-international-desjardins-did-to-research-financial-inclusion-in-west-africa/

MicroCapital Universe Profile, United Nations International Fund for Agricultural Development (IFAD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Fund+for+Agricultural+Development+%28IFAD%29

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