The International Fund for Agricultural Development (IFAD) and the Government of Sri Lanka signed a financial agreement on June 26 to implement the Smallholder Agribusiness Partnership (SAP) Programme.
The programme was designed to support the Public Private People Partnership (4Ps), focusing the smallholder farmers to develop the agribusiness value chain. It encompasses agricultural production, processing, distribution and marketing thereby helping smallholder farmers to increase their incomes, improve employment opportunities and household nutrition in rural areas.
The programme will provide a platform for 57,500 poor rural households to increase their income and food security by expanding livelihood and business opportunities. It will also facilitate women and young people to access financing and business training enabling them to form partnerships with each other and with the private sector.
The total investment over the six-year implementation period is estimated at USD 105 million (LKR 17 billion), including IFAD financing of USD 33.7 million with the contribution of financial institutions, private sector, beneficiaries, and the government.
The programme will have the national coverage and preference will be given to poor rural householders in low income districts and areas where agriproduction potential is high.
Finance and Mass Media Ministry Secretary Dr. R.H.S. Samarathunga on behalf of the Government of Sri Lanka and IFAD President Gilbert F. Houngbo signed the agreement to obtain USD 33.7 million as the loan for Smallholder Agribusiness Partnership (SAP) Programme on June 27 in Rome, Italy.