UN agency invests P3.36 B in agri MSMEs

The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, is investing $63.5 million (about P3.36 billion) in projects that aim to benefit agriculture-based micro and small enterprises in 20 provinces across the Eastern Visayas and Mindanao.

The Rural Agroenterprise Partnerships for Inclusive Development and Growth Project (RAPID GROWTH) is the latest addition to IFAD’s country program.

To be implemented by the Department of Trade and Industry, RAPID GROWTH will be one of the five projects to be funded by IFAD in the Philippines amounting to $324 million.

RAPID GROWTH aims to support MSMEs in selected commodity value chains with comparative advantage, market demand, growth potential, linkages to small farmers and job creation.

IFAD country director for the Philippines Alessandro Marini said RAPID GROWTH was in line with the Philippine Development Plan.

The project also aims to support smallholder farmers and SMEs in commodities that the country has competitive advantage such as cacao, coffee, coconut and processed fruits and nuts.

“Domestic and regional demand for rural goods and agricultural commodities is growing rapidly.

“Enterprises that operate efficiently, sourcing sufficient quality raw materials, applying modern technology, and complying with recognized product standards have substantial potential to create income opportunities for smallholder farmers and other disadvantaged groups in rural communities,” IFAD country program officer Jerry Pacturan said.

IFAD is an international financial institution dedicated to eradicating poverty and hunger in rural areas of developing countries.

In the Philippines, IFAD investments have reached $771.5 million, directly benefiting 1.8 million households.