Development Finance Corporation and La Inmaculada Credit Union sign agreement for implementation of Climate Resilient and Sustainable Agriculture Project

By Zoila Palma Gonzalez: On June 26, 2024, 2 key financial institutions, the Development Finance Corporation (DFC) and La Inmaculada Credit Union (LICU) signed an agreement for the implementation of the Climate Resilient and Sustainable Agriculture Project, funded by the Government of Belize through a loan agreement with the International Bank for Reconstruction and Development (IBRD).

The Climate Resilient and Sustainable Agriculture Project, aimed at bolstering the resilience of Belizean agriculture, includes a Matching Grant Facility (MGF) with an initial allocation of US$ 16.0 million.

This fund is dedicated to promoting the adoption of Climate Smart Agriculture (CSA) technologies, approaches, and practices among climate-vulnerable farmers in Belize. The MGF is divided into two parts: US$ 10 million for small producers and US$ 6 million for medium to larger producers.

The project will be co-financed by the Blue Creek Credit Union, LICU, the DFC, and the beneficiaries themselves. The Ministry of Agriculture, on behalf of the Government of Belize, will channel the MGF proceeds to the ultimate project beneficiaries in the Corozal, Orange Walk, Belize, and Cayo Districts through the Project Implementation Unit (PIU) at the Belize Social Investment Fund (BSIF). The PIU will administer the MGF on behalf of the Ministry of Agriculture, Food Security, and Enterprise (MAFSE).

The detailed terms and conditions for the MGF implementation are outlined in the Matching Grant Operations Manual (MGOM) and the PFI Agreements, which were signed.

The project targets an investment partnership with 3,700 potential beneficiaries, ensuring that at least 30% of these beneficiaries are women.

The MGF will support investments aimed at increasing the climate resilience of Belizean agricultural producers, enhancing access to water for agriculture, optimizing productivity, promoting crop diversification, and supporting post-harvest processing investments. Additionally, the MGF will focus on reducing inefficient use of agricultural inputs, food losses, and waste, and promoting activities that reduce greenhouse gas (GHG) emissions through energy and water efficiency measures and the adoption of alternative energy sources.

The MGF features two windows:

Window 1: For Smallholder Farmers – This window provides matching grants amounting to 60% of the CSA investment cost, with a maximum limit of BZ$12,000 per beneficiary. The beneficiaries are required to contribute an obligatory 40% of the investment.

Window 2: For Medium and Large Farmers and/or Farmers Organizations – This window provides matching grants amounting to 30% of the CSA investment cost, not exceeding BZ$60,000 per beneficiary. Beneficiary farmers or organizations must contribute an obligatory 70% of the investment.

“This collaborative effort represents a critical advancement in ensuring the sustainability and resilience of Belize’s agricultural sector, fostering economic growth, and addressing the impacts of climate change on agriculture,” the Ministry of Agriculture explained.

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