Funding Sustainable Agriculture Practices in Morocco

Posted on August 4, 2011 by Rachel Fredman, MCC Intern Morocco

Driving through the hills near Taounate in Northern Morocco is dizzying at times. With sweeping views of precipitous peaks and groves of olive and fig trees, one feels immediately transported to southern Spain. It’s disorienting to think that only a day before I was in a cool oasis flanked by date palms and sun-scorched desert. This is the geographical diversity of Morocco.

It is this geographical diversity that yields tremendously varied agriculture. According to the World Bank, the agricultural sector in Morocco employs about 40 percent of the nation's workforce, making it the largest employer in the country and about 15 percent of its total GDP.

About 70 percent of the poor live in rural Morocco, which results in a massive rural exodus toward urban areas like Casablanca or Rabat, or the European Union. Many of these urban economies, however, cannot support this migration and these people often find themselves selling tissue or other goods on the side of the road for lack of better opportunities.

Many of the agricultural practices in Morocco have led to massive amounts of soil erosion, which is often irreversible. In the rainy sections of the northeast of the country, barley, wheat, and other cereals can be raised without irrigation. Farmers default to these crops in many of the areas we are passing through, razing trees on the mountains and planting wheat in their place. Along with overgrazing, this is causing land degradation and serious desertification throughout the country. We often pass by a mountain that, once home to trees and native plants, is now crackling dry from soil erosion. This intense desertification in Morocco also increases water pollution. The loose topsoil causes an increase in runoff, which in turn increases the siltation levels of Moroccan reservoirs and the Mediterranean Sea and Atlantic Ocean.   

The Morocco Compact is addressing these issues with its ambitious Fruit Tree Productivity Project. This Project will rehabilitate about 55,000 hectares of existing rain-fed fruit tree orchards and expand fruit tree production on nearly 62,000 hectares of land. It aims to increase and stabilize the income of poor farmers by shifting to more valuable tree crops – from wheat to rain-fed olive, date and almond trees. Almost 70,000 households will benefit from higher productivity and increased incomes. Moreover, they will be provided training and technical assistance on improved crop husbandry techniques that will increase yields and alleviate soil erosion as well as strengthen links to markets.

We visited one such cooperative in a small village near Taounate to learn more about their program. 
 

 

Reporting from Armenia: A Peace Corps Volunteer Working with the MCA

Posted on July 20, 2011 by Sharon Keld, Peace Corps Response Volunteer

As a former Peace Corps volunteer and a 20-year veteran of the corporate marketing world, I’ve seen my fair share of economic development projects. Now, I am in Armenia as part of a program that partners Peace Corps response volunteers with MCC projects. My main responsibility has been assisting the Communication team at MCA-Armenia (the Armenian government entity responsible for implementing the MCC Compact in Armenia) in its efforts.  The position has given me a front-row seat to MCC’s investments in Armenia. After observing the dedication and professionalism of everyone involved in this effort, I have concluded that it has been one of my most inspiring experiences yet.

The MCC’s total investment in Armenia’s agricultural and water sector is expected to reach $177 million by the program’s completion in September 2011. The goal of the program is the reduction of rural poverty through the rehabilitation of Armenia’s vital irrigation infrastructure, complemented with extensive technical and financial assistance to rural farmers and to the government irrigation entities that support them.

I can see the difference that MCC and MCA-Armenia are making in the lives of people here.  During my time in Armenia, I have been witnessed the opening of a tertiary canal, a nursery visit, and the ribbon-cutting for two pumping stations. But the event that touched me most was a small event honoring Hamazasp Gabrielyan, the 1,000th borrower under an activity designed to expand the accessibility of credit for rural Armenians.  With this small loan of approximately $8,000, Hamazasp will build a new cooling facility that will allow him to extend his selling season and increase his income.  As I listened to his story, I felt a deep sense of pride and gratitude. Thanks to our investment and contribution, thousands of farmers like him will have access to better irrigation and training in advanced farming techniques. This will improve their incomes and their lives. 

Another personal highlight was attending a tree-planting ceremony along with 80 Armenian schoolchildren.  As part of its environmental policy, MCA-Armenia is required to compensate for any trees cut down during construction.  The launch I attended kicked off a campaign in which MCA-Armenia planted 1,500 trees this spring.  As I helped plant a tree outside the village hall, and observed the gratitude and enthusiasm of the community members, I couldn’t help being filled with pride and enthusiasm about my work here and the work of MCC to benefit the Armenian people.

Agri-Food Expo Highlights How MCC Investments Are Creating Jobs in Georgia

Posted on December 17, 2010 by Jim McNicholas, Resident Country Director, Georgia

 

On November 29, 2010, Millennium Challenge Georgia (MCG) hosted a closing ceremony and exhibition for its agribusiness development program.  To celebrate this milestone, 60 of the program’s 283 agribusiness projects showcased their products at an Agri-Food Expo, with Georgian government officials as well as bankers and supermarket chains in attendance.

Since 2006, MCG and its implementing partner, CNFA, a U.S. non-profit, have co-financed 182 primary producers, 43 businesses projects that provide services to farmers, and 58 businesses that enable value-added and value-chain production.  MCG has invested $15.9 million in this program and, according to CNFA, Georgian citizens have invested $20 million more.  As of early autumn 2010, MCG reported that 2,613 jobs had been created as a result of agribusiness development program activities. 

At the Agri-Food Expo, Mamuka Tskioridze and Malkhaz Gabunia displayed their orange persimmons neatly packed in wooden boxes, alongside fresh salad greens and herbs.  With their company’s 1:1 matching investment and MCG’s $149,000 co-financing, these entrepreneurs have expanded their greens export business both in terms of volume and the types of products being offered to Belarus, Moldova and Ukraine.  “In the past, every product we bought from farmers we had to pack and ship that day because if not we would lose the product,” said Mr. Tskioridze.  “With the cold storage warehouse [which was also co-financed by MCG] we now have time to collect more products from our farmers and export using fewer trips.” 

One of the most successful projects to emerge from MCG’s agribusiness program was the establishment of 33 for-profit, privately owned, Farm Service Centers throughout Georgia.  Before the centers were opened, farmers had to get their supplies from stalls in various local markets.  These decentralized transactions made it difficult for farmers and their suppliers to build relationships and communicate with each other.  Now, one-stop Farm Service Centers have been established in every region in Georgia and have generated 100,000 transactions.  In addition to serving as a commercial exchange, the centers also provide opportunities for the exchange of information — knowledge warehouses where the Ministry of Agriculture, various Community Based Organizations, and individual farmers can showcase new farming techniques and relay important announcements.

Georgia’s Prime Minister, Nika Gilauri, closed the Agri-Food Expo by noting several program results, “More than 2,600 jobs have been created and these jobs are not just short-term jobs; they have long-term perspectives and provide long term opportunities…  Millennium Challenge Georgia proved that investments can be made in this sector and be successful.”

The Fine Print: Impressions from the Field

Posted on June 23, 2010 by Patrick Fine, Vice President for Compact Implementation

Earlier this month, I spent three days getting a firsthand look at MCC’s investments in Honduras.  The MCC-funded program there will end in September, so most activities are almost finished.  In fact, Honduras will be the first country to complete its five-year MCC compact.  I was impressed by what I saw both in terms of the development impact and in terms of how the program has been managed toward a successful conclusion. 

The program has two principal components: (1) a transport project that is widening and repaving 105 kilometers of the main highway through the country; 68 kilometers of paved secondary roads; and about 500 kilometers of dirt feeder roads; and (2) a rural development project that includes a training program to move small farmers from traditional methods into greater commercial activity by selling high-value horticultural crops.

I particularly liked seeing the direct link between the compact’s investments and increased income.  The program works with approximately 7,400 farmers who previously were earning $350-$400 per hectare growing maize and beans using traditional methods.  6,000 of these farmers are now earning at least $2,000 and, on average, $4,000 per hectare per year growing vegetables using modern methods that include drip irrigation. Not only is there a clear and large boost in the income of program participants, but they, in turn, have created new jobs, most part-time, in their communities. 

Many participants have used the increased income to improve their farms and homes and buy motorcycles or cars and, in some cases, trucks to haul their produce.  Signs of increased prosperity were visible in the communities I visited.  These two projects are clearly linked together. Roads are being built in productive areas where many of the farmers are being trained, to facilitate getting their produce to market.

In addition to seeing how the MCC compact program has helped to increase incomes in rural Honduras, I also saw the potential of the program’s CA-5 road project bring lasting and positive improvements to Honduras’ transport sector. The CA-5 highway runs through mountains and the construction is making cuts and fills to create a broad, safe and modern road bed.  The new road beds will have a lasting improvement. The paved secondary roads also looked like they would bring long-term improvements to local communities.

A final part of this program worth commenting on is capacity building.  Because this tends to be intangible, it is one of the more difficult benefits to convey. From conversations, it was clear to me that the MCA-Honduras staff feel like the program is building on their expertise and institutions.  Small grants to local institutions have resulted in impressive work on biological pest control and on developing new strains of coffee (programs also tightly linked to raising rural incomes), and have introduced renewable technology, such as some innovative water wheels used to supply irrigation systems.

Many Hondurans I met noted that the program’s resettlement policies set a new standard in Honduras, and some saw this as “game changing” with respect to future resettlement.  It is clear that the processes and safeguards enforced by the program benefited affected communities and provide an example of best practices.  Whether this example drives future practice remains to be seen, but authorities seemed impressed by the MCC experience. 

Good management underlies most successful programs, and the MCC experience in Honduras is no exception.  MCC’s Honduras team and MCA-Honduras enjoy a strong, professional relationship that provides a basis for problem identification and solving. Based on my visit, I am proud of what has been accomplished, and I would describe the program as a success.

 

Agents of Change—Tangible Results in Honduras

Posted on May 3, 2010 by Martin Ochoa, MCA Honduras General Director

On Friday April 23, 2010, MCA-Honduras, the local entity implementing Honduras’s MCC compact, informed several stakeholders about the results from investments made in the Aguan Valley in northern Honduras. The results were shared at the inauguration of one of the three secondary roads that are being rehabilitated with MCC funds. The event showcased the compact’s integrated approach to the links between economic growth and poverty reduction. 

The Honduras compact invests in farmer training and development, provides access to credit by following a market-driven approach, and rehabilitates key roads.  MCA-Honduras invested over US $13 million in the Aguan Valley alone, benefitting nine municipalities and more than 200 families.  MCA-Honduras is also contributing to the eradication of med-fly, a deadly crop disease that is affecting over 350,000 hectares of land.

Farmers at the event were excited about how they are able to produce higher-value crops, such as eggplants, watermelon, and peppers that they can now sell for higher prices.  As Celso Alvarenga said, “I am very happy with my irrigation system; my yucca and plantains now have sufficient water to grow quickly. Thanks to the technical assistance received, I produce higher yields, new crops, and am extremely thankful for MCA-Honduras.” Thanks to the MCC compact, farmers like Celso throughout Honduras have learned how to use drip irrigation and no longer fear droughts like they did before.

Beyond the investments made in this region, the event highlighted three important facts about the MCC model and MCA-Honduras’s success.  First, transparency counts.  Second, the program is providing credible tangible results.  And, third, this is a country-driven approach to development assistance.  These three factors are helping create opportunities for Hondurans all over the country. MCC investments are bringing positive change and hope that Hondurans can improve our lives.
For those of us implementing the MCA-Honduras program, it is a great honor to be among the agents of change.