EIB Funds Food Security And Power Projects In Madagascar
The EIB has committed €30 million to the two initiatives.
The European Investment Bank (EIB) has agreed a €20 million (US$21.9 million) loan to fund the development of an agri-processing industrial complex and the construction of a fisheries collection centre in Madagascar.
The loan has been granted to Sahanala, a social enterprise working in agriculture and fishing in Madagascar, and aims to increase sustainable food production for the domestic market and for export.
The total cost of the Sahanala project is estimated at €40 million.
The industrial complex will be developed in Maintirano, western Madagascar and will process maize, rice, oils and animal feed for the domestic market.
The collection centre will be built in Vohémar, northern Madagascar and will be equipped with refrigeration equipment.
Signing the deal during an official visit to Madagascar, EIB vice-president Ambroise Fayolle said: “This project will make a significant contribution to Madagascar’s food security and improved livelihoods from sustainable agriculture and fishing.”
Presiding over the signing ceremony, Madagascar’s agriculture minister Harifidy Ramilison said: “The public sector needs support for these kinds of projects, as rural development and food self-sufficiency are priorities for the government.”
Agriculture and the agricultural processing sector employ around 80% of the active population in Madagascar.
Also in Madagascar, the EIB has since April disbursed a €10 million loan to WeLight Madagascar for the development and construction of photovoltaic solar mini grids in rural villages.
The project is set to benefit 45,000 private homes and businesses, as well as schools, health centres and public spaces in 120 villages across 17 regions.
The EIB loan, which was announced in January, is part of a €19 million joint investment with Triodos Investment Management and EDFI ElectriFI, the EU-funded electrification financing initiative.
About 15% of rural villages currently have access to electricity in Madagascar.
Top photo: The signing ceremony (Source: EIB)