2010 Portofolio Review: A proposal of a Rural Entrepreneurship Funds

The participants in the IFAD Annual Review took the opportunity of the latest session to show the various country portfolio action plans. In general, the assessments and the remedies are complementary.

Most of the projects expressed the need for capacity building sessions earmarked for the beneficiaries and managers. The aim is to develop ownership of the IFAD management and disbursement procedures. They also referred to procurement procedures. In some countries such as Sao Tome and Principe, they found it difficult to have an eligible service provider based on the criteria defined by IFAD. It was also suggested to create a service provider database which will help, among other things, to blacklist crooked contractors.

This decentralization policy initiated by IFAD was praised as a major innovation which will result in more direct and closer project management. The participants regretted the supervision timelines and their untimely operationality. Most of the working groups proposed a timeline which takes into account seasonal and social constraints. The establishment of a Rural Entrepreneurship Fund was also proposed to encourage the development of small and medium size entrepreneurs in those areas.

Delays in project implementation, difficulties for Governments to mobilize counterpart funds, and procurement procedures were also mentioned by the participants. They proposed solutions to overcome those constraints. They include: tax exemption orders or counterpart funds in kind. Project managers and beneficiaries also wished to have a more aggressive communication and a more harmonized social policy. The objectives are: more visible IFAD field actions and stabilization of the project staffs.