Manila, Dec 14, 2006 AEST (ABN Newswire) - An US$18 million grant from the Japan Fund for Poverty Reduction, funded by the Government of Japan, will support an innovative project that will provide sustainable means of earning income in selected rural farming districts in Afghanistan.
Poverty remains the country's biggest challenge, and the lack of income-generating opportunities, particularly in rural areas, has been identified as one of the major factors behind this.
The project will help to address the problem by establishing four rural business support centers designed to allow farmers, agri-processors, and traders to profitably produce, process, and market their products.
"Businesses hesitate to invest in potentially productive areas because of the large investments needed, and investors who want to develop agro-processing facilities want assurance that raw materials are available and that resources that can increase productivity are in place," says Joji Tokeshi, an ADB Senior Project Implementation Specialist.
"By focusing on the entire chain rather than a component such as production, the project will ensure that all the parts required to stimulate and sustain economic development are in place."
Each center will house an agri-processing plant, which will add to the existing limited rural infrastructure to support business development. It will include financial institutions delivering credit and other financial products, suppliers, and a training and capacity development center designed to develop an array of livelihood skills, improve production, and facilitate marketing.
The centers will be located in Dawlat Abad district, Balkh; Bamyan district, Bamyan; Daman district, Kandahar; and Rodat district, Nangarhar - areas with community development councils to ensure the sustainability of the project.
About 9,000 families from the rural poor, whose livelihoods are tied to agriculture and are vulnerable to widespread food insecurity, are expected to benefit.
The Ministry of Finance is the executing agency for the project, which will be carried out over about four years. The Government will contribute $1 million equivalent in the form of land for the centers, and the beneficiaries will contribute $300,000 equivalent by way of labor for construction.
The JFPR was set up in 2000 with an initial contribution of $90 million, followed by additional contributions totaling $155 million in 2002, and annual contributions up to 2006 bringing the total amount to $360 million.
Contact
Graham Dwyer
Email: gdwyer@adb.org
Tel:+632 632 5253; Mobile: +63 920 938-6487
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