Four value chains are central to the Agricultural Competitiveness and Export Diversification Project (PACOFIDE in French) which has recently received a boost with additional financing from the World Bank and designed with the technical assistance of the FAO Investment Centre. The Government of Benin hopes to counter the growing food insecurity by generating more inclusive economic opportunities.
Consistent with Pillar 2 of the Government of Benin’s Prevention and Resilience Program, the objective of World Bank-funded PACOFIDE is to address the structural causes of fragility in the country, by increasing productivity and market access for selected agri-food value chains.
The project focuses on strengthening the enabling environment and infrastructure for agrifood development, increasing productivity in pineapple, rice, vegetables and cashew nuts value chains and promoting investments and access to finance.
Benin’s population is currently affected by growing food insecurity, which rose from 10 percent in 2017 to 26 percent in 2022 (World Food Programme). Now, even though food price inflation has curbed, the Food Crisis Prevention Network projects that because of floods and droughts, 0.3 million people are expected to face Integrated Food Security Phase Classification (IPC) Phase 3 (crisis) and an additional 1.3 million people are expected to face IPC Phase 2 (stressed) conditions in the June to August 2024 period.
The additional USD 150-million financing aims at building on the preliminary results of the project and further expand pineapple and cashew nut production, further develop irrigation and mechanization in the rice and vegetable sector, provide more agricultural inputs (seeds and fertilizers), production technology and advisory services and launch preparatory studies for future irrigation investments.
A team of three experts from the Investment Centre of the Food and Agriculture Organization (FAO) of the United Nations has supported the design of the initial project and of the additional financing. Their expertise in irrigation and rural infrastructure, agricultural mechanization and economy came as valuable advice for the Government and the World Bank to design a cost-effective and impactful project.
Ismail Oudra led the Investment Centre team: “Going further than providing infrastructure and production inputs, this project supported the creation of four public-private dialogue platforms bringing together all relevant stakeholders in the cashew, pineapple and market garden value chains. This makes it possible to address specific challenges, facilitate coordination, and mobilize investment in an integrated and participatory way.” The project also promotes climate-smart agricultural practices to deliver the triple wins of increased productivity, enhanced adaptation and resilience, and reduced greenhouse gas emissions. The Investment Centre will also support its implementation in 2025.
Started in 2020 and extended to 2030 with the additional financing, the project already had significant results. The volumes of cashew and pineapple that are commercialized for supported beneficiaries have increased by 36 percent and 20 percent respectively. Cold storage logistics centres for perishable agricultural exports were constructed at the Cotonou airport. 83 000 hectares of old cashew plantations were rehabilitated and 17 000 hectares of such new plantations were established. In 2023, close to 300 000 farmers were provided fertilizers to increase their production.
The additional financing will follow the path of the parent project by implementing a gender-targeted strategy. It aims to address gaps identified by recent studies on gender in agriculture in Benin, including lower access to agricultural assets and lower participation in decision-making for women