Madagascar: Boost for farmers, fishers and food security with â‚¬20 million EIB loan

Christian Fernsby ▼ | July 19, 2023

An EIB loan of â‚¬20 million for Sahanala, a social enterprise working in agriculture and fishing in Madagascar, aims to increase sustainable food production for the domestic market and for export.

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Smallholder farmers, fishers and the Malagasy population as a whole stand to benefit from a â‚¬40 million Sahanala project, supported by a â‚¬20 million investment from the European Investment Bank (EIB), signed today in Antananarivo.

The loan will support two projects:

â€¢ The first will promote agricultural mechanisation alongside traditional farming practices in western Madagascar (Maintirano). It will also cover the development of an industrial complex to process maize, rice, oils and animal feed for the domestic market. This will help raise revenues and improve the living conditions of producers.

â€¢ The second involves the construction of a modern collection centre with refrigeration equipment in northern Madagascar (VohÃ©mar). It aims to promote responsible fishing and will enable small-scale fishers to sell their goods on the domestic and international markets. Ice machines will also be installed in various collection centres.

Through these projects, Sahanala aims to support economic development and improve the daily lives of its main shareholders â€” the farmers and fishers, and the communities and families that depend on them â€” notably through the creation of more than 1 500 jobs.

They will provide farmers and fishers with technical and financial know-how, giving them better access to markets at fair prices, while increasing their capacity to respond to the growing demand for nutritious staple foods from the Malagasy population.

At the same time, Sahanala will train producers to comply with high environmental standards and protect biodiversity and natural resources to ensure sustainable long-term development.

Sahanala is expected to become the first Malagasy company exporting seafood products certified by the Marine Stewardship Council (MSC).

The enterprise is also committed to strengthening equal opportunities in the agriculture sector, encouraging women to take on management responsibilities and providing them with access to training, financial services and information.

Agriculture and the agricultural processing sector employs around 80% of the active population in Madagascar. ■

POST Online Media Lite Edition

Madagascar: Boost for farmers, fishers and food security with â‚¬20 million EIB loan

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