AfDB and Benin Sign CFAF 19 Billion Milk and Meat Production Loan Agreement
Tunis, 20 February 2009 – The African Development Bank (AfDB) Group and the Republic of Benin signed on Friday in Tunis an agreement for an African Development fund (ADF) loan of 25 million Units of Account (UA*), equivalent to US$ 37 million (CFAF 19 billion), to finance the country’s Milk and Meat Sectors Support Project (PAFILAV).
The AfDB Vice President for Operations, Zeinab El-Bakri, who signed for the institution, said that the agreement was in line with Benin’s 2007-2009 growth and poverty reduction strategy. This places emphasis on diversification with a view to accelerating economic growth, promoting good governance and strengthening the social sector to promote the country’s poverty reduction and sustainable human development program.
It also conforms to the Bank Group’s poverty reduction strategy which aims to attain the Millennium Development Goals on target.
“I would like, through you, to urge the Government of Benin to pay particular attention to the commencement of the project on schedule, Mrs. Bakri said, underlining “the capital importance attached to the speedy processing of the project’s required implementation conditions.”
For his part, Benin’s ambassador to Morocco, Bio Toro Orou Guiwa, who signed the agreement for his country, commended the Bank for its strong support, noting that the government would always ensure that such resources are used to improve the people’s living conditions.
The PAFILAV, which covers the country’s main production basins, will involve the most motivated stakeholders of the sectors to help increase production of milk and meat, substantially reduce the country’s food dependency as well as improve the competitiveness of both sectors.
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) considers sector promotion as the major thrust through which the agricultural sector will contribute to the implementation of Strategic Development Orientations.
The project will be implemented over six years (2009-2014) a total cost of UA 31.06 million.
* 1UA = US$ 1.49192 = 763.606 on 20/02/2009