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Integrated Programme Phase II (2005-2008)

Support for the development and revitalization of the private sector - Pilot programme for poverty reduction

Challenge

To contribute to Government efforts to mobilize and develop the considerable natural and human resources of Madagascar to combat increasing poverty among the population - and particularly in rural areas - by strengthening income-generating activities of the private sector through improved institutional support.

Objectives

The present programme is designed to support the implementation of Madagascar's Poverty Reduction Strategy Paper (PRSP) and help achieve the targets of the Millennium Development Goals (MDGs).

The main results expected from the Programme are: (i) strategies and action plans aiming at strengthening the competitiveness of the industrial sector in Madagascar; (ii) stronger institutional capacity in the field of quality control, standardization and certification; (iii) a number of enterprises restructured and up-graded; and (iv) pilot agro-industrial projects for the diversification of rural productions and poverty reduction in rural areas.

Programme components

The programme refocuses the existing portfolio of UNIDO ongoing projects to better align itself to the PRSP objectives, and address the key constraints to broad-based growth and sustainable reduction in poverty. Its main strategy is based on the two following pillars:

  • Strengthening of institutional and productive capacity through measures designed to restore the competitiveness of the private sector and generate opportunities for private investment. Emphasis will be on supporting the Government in developing and implementing strategies for enhancing the competitiveness of the industrial sector in harmony with the PRSP through capacity building, increased access to information, promotion of national standards to ensure product safety and quality, and restructuring and up-grading of selected enterprises. The main focus would be on export-oriented food and textile industries.
  • Direct interventions to generate employment and reduce poverty in rural areas. These interventions will focus on the promotion of a viable alternative livelihood for the poor and vulnerable groups, in particular agro-industry based income-generating activities such as fruit and vegetable processing, essential oils and by-products, silk and bamboo. They will also promote alternatives sources of energy.


The Programme has an initial implementation phase spread over a period of three years (2005-2008), with an expected budget of USD 3,390,000 (not including 13% overhead costs).