Project Components

RED Value Chain development activities will enhance the efficiency of the potato and dairy value chains, which will ultimately lead to improved household incomes and living conditions within the project regions.

The RED programme is comprised of three components:

Component A supports the Potato value chain, from sustainable quality seed production and access, to  improved ware potato production, to proper post-harvest equipment and storage.  This will lead to improved marketing efficiency aimed at supplying a pre-defined end market. The programme will also collaborate with and strengthen the capacity of existing farm service providers to deliver relevant quality inputs, advice and guidance.

Component B supports the Dairy/Meat Sector, focusing on improved animal husbandry and cold chain management. Special attention will be paid to improvement of herd health, enhancement of farm management, introduction of the cold chain and food safety requirements along the whole processing cycle, including feeding and pasture management. The programme works with service providers to facilitate access to quality veterinarian supplies and consultancy services, and also provides technical assistance through training sessions on model farms.

Component C aims to provide direct access to capital investment to meet the needs existing in the potato and dairy value chains through the “Fund for Investment in Agribusiness (FIAB).

The Fund has two financing mechanisms:

  • The Co-Investment Fund, which supports model farms by providing matching investment in the project;
  • The Secured Lending Facility (SELF), which in cooperation with partner banks provides farmers and agribusinesses access to commercial credit under favorable rates and terms  The FIAB will deposit cash as secondary loan collateral on agribusiness loans made directly by commercial banks in order to significantly decrease interest rates.