The Islamic Development Bank (IsDB) has granted financing of EUR27.59 million (CFA Francs 18.1 billion) for the development of the rice value chain in Senegal. The announcement was made in Dakar during the signing ceremony of an agreement between the IsDB and the Government of Senegal, represented by Senegal’s Minister of Economy and Finance Amadou Ba and President of the IsDB Group, Dr. Bandar Hajjar.
The total cost of the project is estimated at EUR41.1 million. The IsDB contribution to the project financing is Euro 27.59 million. The package includes a blend of the Ordinary resources of IsDB and a grant from the Lives & Livelihood Fund, known as LLF, to achieve the concessionally of the mix, concessional funding from the Islamic Solidarity Fund and a technical assistance grant.
The project is part of the IsDB’s Regional Development Program of Rice Value Chain. It will help reduce rice imports and consolidate economic growth by improving production, processing and marketing, and by strengthening private sector participation in Senegal.
More specifically, the project will substantially increase rice production and productivity using the value chain approach, increase smallholder incomes, and reduce poverty and food insecurity. create market opportunities for targeted rice producers to create market access, and build capacity for institutional services, including through effective private sector engagement.
The project covers the main rice production areas, including the Senegal River Valley and the Kolda, Sedhiou, Ziguinchor, Thies, Kaolack and Fatick regions. The project supports key players in the rice value chain and will create 20,000 decent and sustainable jobs by 2025.
The Lives & Livelihood Fund is an initiative of the IsDB and other institutions, including the Bill & Melinda Gates Foundation, in partnership with other donors who have decided to unite their capacities to set up a facility to provide blended funding to address pressing needs in the areas of health, agriculture and rural infrastructure to assist poor people in IDB member countries. The IsDB is the Administrator.