Project Summary

Project General Description

The Agro-industrial Processing Zone Development Project in the South-West Region of Madagascar (PTASO) is the first project of an initiative that could be replicated at national level to ensure greater processing of agricultural products. The project is consistent with the Agriculture, Livestock and Fisheries Sector Programme and the National Agricultural Investment Programme (PSAEP/PNIAEP 2016-2020), which is also aligned with the General Government Policy (PGE) and the Madagascar Emergence Plan (PEM). This operation stems from the Government’s urgent need to reverse the trend in agricultural sector underperformance in the production and processing of agricultural products, especially in the South-West region, whose development potential contrasts with the recurrent food insecurity in this part of the country. The project focuses on the processing of agricultural products, and thereby contributes to wealth creation through jobs generated in agroindustry, preserves economic and financial stability by reducing imports of agro-food products, and responds to post-COVID-19 impacts. The PTASO will promote agricultural value chains (AVCs) such as rice, cape peas, maize, fishery products and small ruminants, through infrastructure development and the implementation of measures likely to attract the private sector to play its role in key areas of industrial processing and marketing. The main activities financed by the project are: (i) improvement of the regulatory framework to develop SAPZs and strengthen institutions; (ii) construction of basic infrastructure in Tuléar agro-industrial platform and agribusiness centres (Ankilililoake and Tandadave); (iii) improvement of agricultural production infrastructure (irrigated areas, aquaculture farms, etc.) and marketing (storage warehouses, rural roads, etc.); and (iv) capacity building for stakeholders in the agro-industrial sectors (Government services, farmer organisations, etc.). These activities will create wealth and employment, improve food security and reduce chronic malnutrition in this part of the country which, despite its potential, remains a pocket of famine. This operation, estimated at UA 24.27 million, will be implemented over five (5) years starting from 2021; it will be funded by TSF Pilar I (UA 20 million), and the Government of Madagascar (UA 4.27 million).

Project Objectives

The project overall goal is to reduce imports of agri-food products and improve Madagascar's food and nutritional security. Specifically, it seeks to promote inclusive agricultural transformation by developing basic infrastructure and establishing an incentive framework for private investment in priority value chains in the South-West Region of Madagascar. The Bank's intervention, through the PTASO, seeks to accelerate the processing of agricultural products in the South-West which, if successful, could be extended throughout the country. The project will help to effectively boost economic development because it has adopted relevant Bank strategies in efforts to consolidate the role of the private sector and communities in rural development, thereby ensuring inclusiveness in Africa and in Madagascar, in particular.

Beneficiaries

The project will cover some 83,000 ha in the project area and have an impact on some 152,000 direct beneficiaries and 460,000 indirect beneficiaries, of whom some 54.70% are women. The region has several small and medium-sized agro-food enterprises, in particular COPEFRUITO, SIMABIO, poultry and fishery SMEs, and the Agricultural Professionals Association of Madagascar (CPA-M).

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