A financial tool at the service of Malagasy farmers

Context

A State project to meet the service needs of farmers

Within the framework of the Services Strategy for Farmers elaborated by the Ministry of Agriculture and Livestock in 2009, Fert, in partnership with Fifata, supported the implementation of Agricultural Service Centres (CSA for “Centres de Services Agricoles” in French) in 4 regions and of Regional Agricultural Development Funds (FDAR for “Fonds de Développement Agricole Régionaux” in French) during a first pilot phase between 2011 and 2016. CSA are innovative and specific to Madagascar. They are organizations that, at the district level, link the requests for services from farmers (training, advice, seeds, etc.) with the services offered by farmers’ organizations (FOs), associations, rural microfinance institutions (MFI for “Institutions de Microfinance” in French), companies, etc. In addition to existing banking services, the FDAR aim at strengthening the development of services and value chains by partially subsidizing the projects of farmers or FOs.
In 2014, the system was institutionalized with the creation of the Agricultural Development Fund (FDA) at the national level, in charge of steering the FDAR in regions with the objective of covering the entire country.

Objectives

Supporting the agricultural development of the regions

Operationalizing and leading to autonomy a granting scheme for agricultural services and FO projectsEncouraging the leading role of farmers in FDAR managementFinancing agricultural initiatives led by the farmers and participating in the development of value chains in the regions

Actions

Financing agriculture

In Madagascar, while 80% of the population is rural, the supply of financial services to farmers remains very limited and access conditions are complicated for most farmers. Since 2009, in connection with the State, Fert has accompanied the implementation of CSA and FDAR in different regions (Amoron’i Mania, Menabe, Ihorombe, Vakinankaratra and Alaotra Mangoro) since August 2017 for 4 years, so that the FDA can facilitate the implementation of farmers’ projects thanks to a grant. In connection with national farmers’ organizations, Fert ensures the training of technical teams and committee in charge of discussing and validating farmers’ requests. In connection with Fifata, Fert also ensures a good understanding of the needs of farmers and advises the FDAR so that the services meet the needs (collective equipment, advisory support, training in governance, small infrastructures, support for the settlement of young people, etc.). In the Alaotra Mangoro region, Fert works in partnership with the Malagasy association AMADESE. Finally, Fert participates in the reflections and contributes to the development of the national system.

PARTNERS

 

MADAGASCAR

Setting up of CSA and FDAR by Fert:

: since 2017
: from 2011 to 2018
: from 2009 to 2015
: from 2010 to 2011

3 870

projects funded between 2011 and 2018

7,7M

of Agricultural Development Fund between 2011 and 2018

500 000

farmers benefited from support

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