IFAD and the Green Climate Fund to boost climate resilience

The International Fund for Agricultural Development (IFAD), in partnership with the Green Climate Fund (GCF) launched the Inclusive Agricultural Value Chains Program (DEFIS+), that aims to boost resilience for smallholders, and both agricultural production systems and rural infrastructure. The program will directly benefit almost half a million smallholder farmers and indirectly support over 3.5 million people in rural communities.

DEFIS+ is a six-year program (2024-2030) that will promote sustainable agricultural practices and foster access to markets for smallholders across six regions in southern and central Madagascar. The total program cost is US$150.8 million, with GCF financing US$53.9 million, and IFAD co-financing US$97 million through the ongoing DEFIS project (2018-2029). The strategic effort aims to bolster resilience and enhance food and nutrition security by building resilient agricultural value chains.

"DEFIS+ complements and pushes forward the achievements in our quest to strengthen climate resilience and bolster food security in Madagascar. This transformative additional financing will empower the program to expand its interventions, address smallholders’ challenges holistically and equip them with innovative solutions to support long-lasting resilience," said Sara Mbago-Bhunu, Regional Director for East and Southern Africa, IFAD.

Madagascar is the world’s fifth largest island, and faces significant challenges in its agricultural sector, which is the backbone of its economy. With 59 per cent of its population living in rural areas and agriculture accounting for 23 per cent of GDP, the sector is crucial for the country's development. Recognized as one of the world’s most vulnerable countries to the repercussions of climate shocks, Madagascar is engaged in various fronts to overcome the challenges caused by erratic weather patterns including prolonged drought. DEFIS+ will help to reduce the negative impacts of climate variability by applying adaptation measures.

"We are committed to working closely with IFAD, in alignment with the country's climate agenda, to deliver results that improve the lives and livelihoods of climate vulnerable communities." said Euan Low, GCF Sub-Regional Lead for East and Southern Africa Region.

As a prelude to the launch of the project, the IFAD and GCF teams, in collaboration with the State of Madagascar, organized a 3-day workshop to support the start-up and operationalization of the program team. The workshop provided stakeholders with background information on the project and discussed the modalities required for effective and objective implementation to benefit small-scale producers.

“In Madagascar, we are working to ensure that the fight against climate change makes a real contribution to transforming the country. DEFIS+ will be an illustration of this: by strengthening the resilience of ecosystems and agriculture, we are improving the lives of rural populations and moving towards more sustainable development”, said Max Andonirina Fontaine, Minister for the Environment and Sustainable Development.

Since 1979, IFAD has funded 18 rural development projects in Madagascar for a total cost of US$1,012.86 million, with an IFAD investment of US$502.83 million benefiting more than 635,000 households. DEFIS+ will contribute to improve the agricultural systems and infrastructure in Madagascar, trough Climate Smart Agriculture.