Grants for Inclusive Value Chain Development

Aim: will address the wider value chains, going beyond agriculture, to strengthen value chains that have promising potential to increase incomes and employment especially for poorer section of the rural society represented by smaller producers and rural employees.Value chain development will include assistance in strengthening the linkages between production, processing and marketing infrastructure; promotion of the use of innovations (science & technology); providing incentives for the sector growth and performance.

Ceiling: grant up to 50% of the cost of investment, but not more than $20 000 USD per one beneficiary

Background

The modalities of the inclusive value chain development subcompact will differ from previous programs and projects intervention. The CPIU-IFAD will change its approach and focus more on the drivers of VC, using a buyer-driven model,which is the most appropriate organizational model of smallholder agricultural production. It will however, continue the brokering of out-grower schemes and tri-partite or multi-party supply chain arrangements initiated under the RFSADP, but with a more demand and buyer-driven focus. IFAD willwork depending on each case, with processors and/or exporters, supermarket chains but with a view to included smaller farmers and/ or create employment for the poor. Thus, the supported value chains will enhance producer individuals and groups’ capacity and will facilitate market access.

Beneficiaries and eligibility criteria

Inorder to be selected as beneficiary for grants for purchase specific equipment the interested agriculture companies and farm service providers will have to apply for competition and will, at all times, have to meet the criteria specified below:

must be registered as economic entities and conduct agricultural/farming activity and it is linked to a value chain;
are registered as economic entity and conduct activity as a Value chain driver (processor, distributer, etc)in rural area, except for Chisinau and Balti towns;
have at least two year experience of farming or three years in processing, distribution, marketing of VCD products;
committed to contribute with at least 50% funds to the provided IFAD grant for purchase of equipment, agriculture machines;
committed to serve a Value Chain Driver (it referrer to Value chain drivers);
should maintain accounting evidence for overall transactions and operations in accordance with acceptable accounting procedures and standards;
should be interested in implementation of pilot projects together with other out grow farmers.

The following applicants shall not be eligible for participating in the program:

enterpriseswhich have outstanding balances in arrears with financial institutions or with entities in the public sector, such as the tax authorities;
enterprises that are insolvent, bankrupt or involved in such aspects and other similar legal processes.

Financing requirements

Tohelp stakeholders, the Programme will provide financial support from IFAD loan to at least three pilot project’s champions through up to 50% grants (up to $20,000) for intensive and innovative production equipment, post harvesting equipment (for sorting, packing, pre-cooling and storage) in case that immediate results (considerable increase in production and product quality) can be demonstrated within the proximate production season.

Guidelines on application procedure will be available in the nearest future.