The government has signed a US$31.5million loan agreement with the International Fund for Agricultural Development (IFAD) to finance the third phase of the Rural Enterprise Project now Rural Enterprise Programme (REP).
A second facility -- a US$50,000 grant will be used to support activities associated with the programme.
REP, which was first introduced in 1995, facilitates the establishment, management and expansion of micro- and small-scale enterprises in the rural areas by organising communities and training them in employable skills such as soap-making, powder-production, beekeeping and grasscutter- rearing.
REP also puts up workshop-buildings equipped with relevant tools to aid the transfer of relevant but simple technology to the rural informal sector. In addition, it provides micro-credit to rural entrepreneurs for their economic activities.
Finance Minister Dr. Kwabena Duffuor, speaking at the signing said the first and second phases of the project in 66 districts (covering the periods 1995-2002 and 2003-2011) have been very successful, and have yielded results that are consistent with government�s goal to industrialise and develop the rural sector.
�Based on the strong performance of the REP model as an effective tool for rural poverty reduction, it was decided to upscale the project to a programme. This is as a result of the government�s strong commitment to poverty reduction, as well as the project�s successful achievements and positive impacts,� he said.
Signing for IFAD, Kevin Cleaver, Associate Vice President, said: �The programme has actually exceeded our mutual expectations. So now we want to make it bigger and more successful. We are also looking at welcoming new partners during this phase.�
The third phase, to be implemented within an eight-year period starting from 2012, will cover the remaining 95 districts plus additional financial support to the 66 districts already covered under the first and second phases.
The total cost is estimated at US$185million, with US$70million of the amount expected to come from the African Development Bank (AfDB). The government will provide US$63.5million through tax reliefs, contributions by district assemblies, and direct budgetary support.
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