1. Seeds of Innovation
in Near East and North Africa
Nadim Khouri (Director)
Mylène Kherallah (Regional Economist)
Claudio Casadio-Tarabusi (KM Consultant)
Near East and North Africa Division, PMD
2. Table of Contents
• Refinancing in Armenia, Macedonia, Moldova
• Contract Farming for Export in Egypt
• Water Harvesting in Sudan
• Range Management in Morocco
• Rural Microfinance in Syria
• Traditional Handicraft Jobs in Tunisia
• Farm Privatization in Azerbaijan
• Rural Microfinance in Jordan
• Reviving Rural Areas in Bosnia and Herzegovina
• Rural Microfinance in Gaza and the West Bank
• Locating Groundwater in Somalia
• Land De-Rocking in Syria
• Agricultural Consulting in Macedonia
• Natural Gas Supply in Armenia
• Farming System Research in Egypt
3. Refinancing in Armenia, Macedonia, Moldova
INNOVATION: Loan Delivery Mechanism
IFAD Rural
1. Loan Client
Application
Loan
4. Loan
Participating
Participating Disbursement
Government
Government Financial
Financial
Institution
Institution
2. Refinancing
Loan Application
3. Refinancing
Disbursement
Refinancing
Refinancing
Facility
Facility
4. Refinancing in Armenia, Macedonia, Moldova
OUTREACH (as of December 2008)
Cumulative refinancing Average loan size In-time recovery rate
US$ 7.1 m US$ 40,100 98.0%
(since 2006)
€ 11.5 m € 6,300 96.0%
(since 2003)
US$ 22.6 m US$ 37,950 98.5%
(since 2001)
Main purpose of loans
Legend:
32% Livestock
Armenia
63% Livestock Macedonia
Moldova
38% Agricultural machinery
5. Refinancing in Armenia, Macedonia, Moldova
RESULTS (as of December 2008)
Armenia:
+26% of sales in two years
+63% of workers in dairy industry, +24% in wine industry
+168% of revenues in small farm households in first year
Macedonia:
+19% of workers in first year, +41% of part-time (mainly women) workers
+30% of family business income for farmer borrowers in first year
Moldova:
2,000 new jobs created from 2001 to 2005
8,500 farmers and 220 large farming enterprises gained
access to markets
26,500 rural households benefited from leasing land to
larger-scale farmers
6. Contract Farming for Export in Egypt
INNOVATION: Support to the Key Role of FMAs
Export
IFAD Markets
Assistance & Training
Farmers
Farmers Contract Exporter //
Exporter
Marketing
Marketing Processor
Processor
Association
Association
Small
Farmer
7. Contract Farming for Export in Egypt
OUTREACH (as of April 2009)
Membership of established Farmers Marketing Associations (FMAs)
Tiba 3,765 members
El-Bustan 2,575 members
Bangar Al Sokar 2,040 members
Entelak 1,884 members
El-Hamam 1,227 members
West Noubaria 947 members
8. Contract Farming for Export in Egypt
RESULTS (as of April 2009)
Contract
b/w FMA and Products Extent Export to
sweet peppers, 31 acres
Kenana Italy
sun-dried tomatoes 15 farmers
Kenana, Sekam artichokes 1,943 acres Europe
1,246 acres
Heinz sun-dried tomatoes Worldwide
300 farmers
El Maghraby table grapes 80 tons Europe
8 acres
Almaghrabi raisins Europe
3 farmers
apricots 157 tons
Hero, Cairo Food Europe
peaches 54 tons
Radwan Brothers green beans 300 tons Syria
311 acres
Arnaut peanuts Switzerland
80 farmers
1,375 acres
Agro Food (et al.) organic potatoes Italy
323 farmers
9. Water Harvesting in Sudan
INNOVATION: Farmer-led Technological Change
Surge in
IFAD Productivity
Demonstration
Demonstration
&&
Dissemination
Dissemination
FAO
Sudan’s
Sudan’s
Agricultural
Agricultural New Water
New Water
Research
Research Harvesting
Harvesting
Corporation
Corporation Technique
Technique
Small
Farmers
10. Water Harvesting in Sudan
OUTREACH
Farmers who adopted the water harvesting technique (cumulated)
2006 3,229 men 115 women
2005 1,781 men 68 women
2004 432 men 32 women
2003 5 women
30 men
11. Water Harvesting in Sudan
RESULTS
Average productivity in sorghum production
New 872 kg/acre
technique
Traditional 80 kg/acre
technique
Average area cultivated with sorghum
New 2.6 acres
technique
Traditional
technique 8.5 acres
12. Range Management in Morocco
INNOVATION: Community-Based Approach
Improved
Rangeland,
Guiding principles:
Guiding principles: Livestock and
• creating tribal-based cooperatives
• creating tribal-based cooperatives Livelihoods
• empowering cooperatives
• empowering cooperatives
• requiring members to buy “social shares”
• requiring members to buy “social shares”
• promoting pastoralists’ mobility
• promoting pastoralists’ mobility
• promoting consensual decision-making
• promoting consensual decision-making
Moroccan
IFAD Government AfDB
14. Range Management in Morocco
RESULTS
Increase in dry matter in the project area
Post- 800 kg/ha
project
Pre- 150 kg/ha
project
Improved livestock:
+10% in the fertility and -66% in the mortality rate of ewes
Improved access to water:
-48% in the average distance from watering points
15. Rural Microfinance in Syria
INNOVATION: “Sanduq” (Saving Box)
IFAD UNDP
Small
Business
Creation
Principles of the Sanduq approach:
Principles of the Sanduq approach:
• cultural, organizational, financial self-reliance
• cultural, organizational, financial self-reliance
• autonomy in decision-making
• autonomy in decision-making
• sustainability
• sustainability
• outreach to the poor
• outreach to the poor
16. Rural Microfinance in Syria
OUTREACH (as of December 2008)
Number of sanadiq established
Jebel al-Hoss 30
Idleb 20
Membership: 4,000 men and women
Number of loans: 1,400
Average loan size: US$ 566
Repayment rate: 100%
17. Rural Microfinance in Syria
RESULTS
Women:
• represent 41% of sanadiq members
• hold 40% of sanadiq share capital
• represent 33% of sanadiq borrowers
• account for 29% of sanadiq outstanding loans
Access to finance has allowed women to establish their own business, such as:
• fattening sheep
• raising cows
• opening small shops
• renting land to plant cash crops
18. Traditional Handicraft Jobs in Tunisia
INNOVATION: Reviving “Al margoum” (Embroidery)
Tunisian Solidarity
Tunisian Solidarity New Small
Bank
Bank
Enterprises
Loan
Fund for
Fund for
Advancement of
Advancement of Women
Women
Traditional
Traditional Loan Receiving
Receiving
Industries and Small
Industries and Small Work Cards
Work Cards
Enterprises
Enterprises
IFAD 11-month
11-month
Training
Training
Programme
Programme
OFID
19. Traditional Handicraft Jobs in Tunisia
RESULTS
Jobs created:
• 39 young women established their own home-based small enterprises
• 20 young women were employed in a needlework centre
• 3 young men and 1 young woman were trained as tourist guides
Other young people:
• established a rest house and restaurant for tourists
• established a shop to sell the Al margoum products
20. Traditional Handicraft Jobs in Tunisia
MARKETING SUPPORT
The project team:
• trained young women in product design so that they could diversify their production offerings
• helped women participate in the Al-Karm Fair in Tunis
• entered into partnership with the local municipality to establish a market for traditional industries
• improved the roads to Guermassa to facilitate tourism
• arranged for Guermassa to be listed in the tourist guide
• established a quality mark for original Al margoum products
• launched an internet site about Guermassa
21. Farm Privatization in Azerbaijan
INNOVATION: Land + Services
IFAD IDA
Surge in
Productivity
Farm privatization and support services:
Farm privatization and support services:
• land registration
• land registration
• farm information and advisory services
• farm information and advisory services
• support to water users’ associations
• support to water users’ associations
• rural credit
• rural credit
• rehabilitation of water supply
• rehabilitation of water supply
• community development programmes
• community development programmes
22. Farm Privatization in Azerbaijan
OUTREACH
Households with land Average land plot size
1997 78.4% 1997 0.2 ha
2003 97% 2003 1.6 ha
Households with livestock Average herd size
1997 75.8% 1997 1.9 cows
2003 86.3% 2003 3.2 cows
23. Farm Privatization in Azerbaijan
RESULTS
Decline in rural poverty
1997 66%
2003 43%
Between 1997 and 2003:
• 50-100% increase in crop yields
• 40% increase in cropping intensity
• agriculture absorbed 400,000 new entrants
24. Rural Microfinance in Jordan
INNOVATION: Familiarizing Women with Borrowing
New Small
Enterprises
Rural Women
Rural Women
Entrepreneur
Entrepreneur
Training
IFAD Line of Credit
Loan
Agriculture Credit
Agriculture Credit
OFID Loan Corporation
Corporation
Abu Dhabi Fund Loan
Abu Dhabi Fund
25. Rural Microfinance in Jordan
RESULTS
Increase in annual per capita income
2000 US$ 625
2008 US$ 825
• >800 people received credit to establish microenterprises
• 77% of them are still operational and repay loans regularly
• 91% of the established microenterprises are led by women
• for 38% of the women beneficiaries, rural microenterprises
represent the predominant source of income
26. Rural Microfinance in Jordan
MARKETING SUPPORT
The project team:
• helped beneficiaries participate in agricultural fairs and bazaars
• carried out training courses for beneficiaries on marketing and production management
• helped beneficiaries improve their storage techniques to sell products at higher prices
• conducted market research surveys
• connected beneficiaries to local markets
• encouraged women to set up marketing cooperatives
27. Reviving Rural Areas in Bosnia and Herzegovina
INNOVATION: Integrated Package of Activities
IFAD OFID
Revived
Rural
Economy
Main project activities:
Main project activities:
• establishment of producers’ associations (PAs)
• establishment of producers’ associations (PAs)
• training sessions to farmers
• training sessions to farmers
• credit to buy livestock and develop enterprises
• credit to buy livestock and develop enterprises
• advice to small private diaries
• advice to small private diaries
• reconstruction of community infrastructures
• reconstruction of community infrastructures
• promotion of savings and credit associations
• promotion of savings and credit associations
28. Reviving Rural Areas in Bosnia and Herzegovina
OUTREACH
Members of PAs Milk collected by PAs
2004 981 2004 3 m liters
2008 3,400 2008 9 m liters
• 23 producers’ associations and 1 producers’ cooperative were set up
• through 9 commercial banks and 2 micro-credit organizations, 3,533
loans were disbursed for an aggregate amount of US$ 15 million
29. Reviving Rural Areas in Bosnia and Herzegovina
RESULTS
The project:
• constructed/rehabilitated 139 community infrastructure micro-projects
• benefited 38,600 rural households (140,000 people)
The 12 small and medium enterprises that received loans:
• created 100 new jobs
• provided part-time employment to 500 seasonal workers
• provided backward and forward linkages to livestock producers
• provided alternative income-generating activities in the rural areas
30. Rural Microfinance in Gaza and the West Bank
INNOVATION: Focus on Women + “Village Banks”
IFAD
New
Women-Led
Enterprises
Savings and Credit
Savings and Credit
Associations (SCAs)
Associations (SCAs)
Palestinian
Palestinian
Agricultural
Agricultural
Relief
Relief
Committees
Committees
31. Rural Microfinance in Gaza and the West Bank
RESULTS (as of December 2008)
• 12 women’s SCAs were created and legally registered as savings and credit cooperatives
• in 2005, a Union of Cooperative Associations for Savings and Credit was established
• the Union represents 176 locations and villages
• the Union includes 7,383 members
• the Union holds over US$ 2.6 million in savings and shares
• the Union’s total portfolio amounts to over US$ 3.1 million
• the Union’s credit portfolio has reached over US$ 10.1 million
32. Rural Microfinance in Gaza and the West Bank
TRAINING SUPPORT
The project team and the Union’s staff:
• trained 465 members at 176 locations on administrative and organizational procedures
• organized 21 exchange visits in 162 locations with the participation of 1,470 women
• trained 320 members at 172 locations on loan management and financial analysis
• conducted 24 workshops on finance and bookkeeping
• helped develop individual business plans for each SCA
• encouraged new ideas and the exchange of know-how
33. Locating Groundwater in Somalia
INNOVATION: Advanced Geophysical Surveys
New Sources
Search of
Search of of Clean Water
underground water sources
underground water sources
by means of
by means of
electrical resistivity techniques
electrical resistivity techniques
IFAD BSF
35. Locating Groundwater in Somalia
RESULTS
• A borehole was dug in the area of Dilla and groundwater actually found and tapped
• The Dilla borehole is now a permanent source of clean water that supplies the village and
surrounding areas
• 7 additional boreholes have been successfully dug by other agencies
in other sites that the programme surveyed
• Underground water availability in the area has been reassessed
• Africa 70 (an Italian NGO) and the UNDP are currently carrying out
geophysical surveys before drilling boreholes
36. Land De-Rocking in Syria
INNOVATION: Integrated Area Approach
Development measures adopted by 5 projects:
Development measures adopted by 5 projects:
Surge in
• removing surface and subsurface rocks
• removing surface and subsurface rocks Productivity
• supporting adaptive research
• supporting adaptive research
• strengthening extension services
• strengthening extension services
• supporting livestock development
• supporting livestock development
• improving rural water supply
• improving rural water supply
• providing intensive training to rural women
• providing intensive training to rural women
• introducing a pest management programme
• introducing a pest management programme
• designing income-generating activities
• designing income-generating activities
• supporting adapted credit services
• supporting adapted credit services
IFAD
37. Land De-Rocking in Syria
OUTREACH
Areas reclaimed through de-rocking
1997-2006 104,063 ha 170,758 ha
1987-1996 75,958 ha 222,696 ha
1977-1986 116,161 ha
4,813 ha
Legend: IFAD projects other projects
38. Land De-Rocking in Syria
RESULTS
Direct beneficiaries of IFAD-supported de-rocking activities
Southern Regional
Agricultural Development 29,000 households
Project II (1992-2001)
Coastal/Midlands
Agricultural Development 16,930 households
Project (1996-2006)
Southern Regional
Agricultural Development 16,000 households
Project I (1982-1987)
Jebel al-Hoss
Agricultural Development 5,000 households
Project (1995-2006)
Idleb
Rural Development 802 households
Project (2003-2006)
39. Agricultural Consulting in Macedonia
INNOVATION: Support to Privately Owned Companies
• selection of potential advisors
• selection of potential advisors
• training on technical and managerial topics
• training on technical and managerial topics
• involvement in the preparation of Strategic
• involvement in the preparation of Strategic
Investment Programmes
Investment Programmes Market-Oriented
• support to mass media production
• support to mass media production Consulting
• development of privately owned service
• development of privately owned service Companies
entreprises on a cost-sharing basis with the project
entreprises on a cost-sharing basis with the project
• phasing out of project support
• phasing out of project support
Agriculture
Agriculture
IFAD Investment Centre
Investment Centre
40. Agricultural Consulting in Macedonia
OUTREACH
Company-facilitated finance (May 2008 - June 2009)
No. of Target Main Amount
Company
loans farmer group sector disbursed
Neda 122 medium size viticulture € 550,000
Tim 120 small size livestock € 120,000
Kocev 40 medium size viticulture € 160,000
Pro 28 small size beekeeping € 110,000
Plus 12 medium size early vegetable € 55,000
Viva 8 medium size livestock € 33,000
Mc 3 large size early vegetable € 70,000
41. Agricultural Consulting in Macedonia
RESULTS
Avg. income of advised borrowers Avg. production of advised processors
Pre- Pre-
loan € 5,166 loan € 460,451
Post- Post- € 691,534
loan € 8,050 loan
• 1,323 borrowers were advised by the 8 consulting companies, for a total
disbursed loan amount of € 7.4 million
• 1,700 new full-time job equivalents were created among loan recipients
42. Natural Gas Supply in Armenia
INNOVATION: Cheap Energy in Poor Areas
Drop in
The mountain areas were connected,
The mountain areas were connected, Household
via mid-pressure pipes,
via mid-pressure pipes, Energy Costs
to the high-pressure main pipeline
to the high-pressure main pipeline
that brings natural gas
that brings natural gas
from Russia to the highlands of Armenia
from Russia to the highlands of Armenia
IFAD OFID
43. Natural Gas Supply in Armenia
RESULTS
Average energy cost per household
Pre-
project US$ 769
Post- US$ 371
project
• The 11 new natural gas networks supply almost 11,000
households (32,500 people) in 28 communities in poor
mountain areas
44. Natural Gas Supply in Armenia
OTHER BENEFITS
• Improved conditions in homes, schools, pre-schools, hospitals and other public institutions
• +15% to +20% in crop productivity now that cow dung is available as organic fertilizer
• 18 mid-sized trees saved per year by each household using natural gas
• increased productivity and competitiveness of rural businesses
• new jobs for the construction and maintenance of gas pipelines
• increased productivity and competitiveness of rural businesses
• increased efficiency of agricultural value chains
45. Farming System Research in Egypt
INNOVATION: Holistic Approach
Farming System
Farming System
IFAD
Research Unit
Research Unit
Surge in
Productivity
Main project elements:
Main project elements:
• agricultural research
• agricultural research
• dissemination of research findings through
• dissemination of research findings through
extension activity
extension activity
• provision of credit necessary to adopt new
• provision of credit necessary to adopt new
technologies
technologies
46. Farming System Research in Egypt
OUTREACH
• >600,000 small farmers were direct beneficiaries of the project, and >680,000 were indirect ones
• 13 farm models were developed to intensify agricultural production
• >80% of farmers adopted new technologies for the most important practices
• a set of new technical packages were developed to integrate crops and livestock
• 230 farm with 852 animals were supervised
• 69 village meetings attended by 4,595 farmers and
79 extension workers were organized
• >50% of farmers adopting technical packages received credit
47. Farming System Research in Egypt
RESULTS
Land productivity: Corn Land productivity: Wheat
Improved Improved
24.4 ardab/fed 22.3 ardab/fed
hybrid cultivar
Traditional 16.2 ardab/fed Traditional 18.7 ardab/fed
Land productivity: Onion Land productivity: Garlic
Improved Improved 9.2 t/fed
cultivar 17.3 t/fed cultivar
Traditional 12.7 t/fed Traditional 6.6 t/fed