A CFAF 19 Billion ADF Loan to Support the Milk and Meat Sectors in Benin
Tunis, November 27th, 2008 – The African Development Fund (ADB Group) Board of Directors has approved a UA 25 million* loan, equivalent to US $ 37.5 or CFAF 19.13 billion, to finance the Milk and Meat Sectors Support Project (PAFILAV) in Benin.
The Milk and Meat Sectors Support Project (PAFILAV) covers the main production basins and all the sector links. The project will work, as a matter priority, with the most motivated stakeholders of the sectors. The implementation of the project will help to increase production in the milk and meat sectors, substantially reduce the food dependency of Benin on the outside world, and improve the competitiveness of both sectors.
The current level of meat and milk production does not meet local demand. Each year, Benin continues to import an average of 60 tonnes of meat and 40 000 tonnes of milk, leading to foreign exchange outflows estimated at CFAF 21 billion for meat and CFAF 10 billion for milk. Livestock production, estimated at 54 850 tonnes of meat (of which 57.6% for cattle, 18.5% for poultry and 13% for small ruminants), 92 000 tonnes of milk and 8300 tonnes of eggs, is not enough to fully meet animal protein requirements. The implementation of the project will increase the production of meat and milk by 7.000 and 19.000 tonnes per year respectively.
The Bank is currently the key technical and financial partner in the livestock sub sector in Benin. It financed livestock development in Benin through the two phases of the Livestock Production Development Project and the Livestock Development Project – Phase III. These interventions helped to: (i) enable producers to acquire livestock production techniques; and (ii) initiate concrete actions to ensure cattle and sheep genetic improvement.
This project will: (i) build the technical and management capacities of stakeholders in both sectors by consolidating the outputs of previous projects; and (ii) facilitate the emergence and operationalization of the milk and meat sectors and new livestock entrepreneurs. In so doing, it will make a significant contribution to the implementation of the Strategic Plan for Agricultural Sector Revitalization (PSRSA) formulated by the Government. The PSRSA (2006-2011) which considers sector promotion as the major thrust through which the agricultural sector will contribute to the implementation of Strategic Development Orientations.
The Project falls within the Growth Strategy for Poverty Reduction (SCRP 2007-2009), which lays emphasis on diversification policies aimed at accelerating economic growth, promoting good governance and strengthening the social sector in order to support poverty reduction and sustainable human development.
The project is designed for a period of six years (2009-2014) and a cost of UA 31.06 million (US$ 46.12 million or CFAF 23.72 Billion).
* 1UC = US$ 1.488 = 765.272 CFAF as in November 2008