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Increasing Private Investment in
Irrigated Rice Production and Processing
In 2000, Mali reported a record rice harvest
despite below normal rainfall. Production reached nearly 750,000
metric tons, a record for the third year in a row. USAID initiatives
over the past several years have contributed to this achievement.
Support for land tenure reform and for the liberalization
of rice milling and marketing have promoted private sector
investment in irrigation, especially in one target zone (Office
du Niger). As a result, an additional 15,000 hectares
of irrigated land have been developed. This represents a 27
percent increase over irrigated lands developed during the
previous 50 years (55,000 hectares). Through community irrigation
schemes, farmers have increased incentives to maintain irrigation
structures. Private milling capacity has expanded and markets
and prices are fully liberalized.
Recent data indicate that the average area
committed to rice production per family ranges between 4-10
hectares. On average, rice-producing households have four
active farmers and average yields of 4.5 MT per hectare. The
cost of production has been estimated at $150 per MT. Given
current prices, farmers have gained about $400 per active
farm worker.
Women farmers have benefited from changes
in land tenure laws. Previously, only male heads of households
had access to irrigated land. Now women have access too. Many
female heads of household have taken advantage of their new
eligibility for Agricultural Development Bank loans and made
investments in rice and horticultural production. Women also
earn money from the production and sale of rice seedlings
for transplanting.
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Increasing Trade in Cereals, Livestock
and Alternative Commodities
Over the past three years, USAID has supported
a West African Regional Market Outlook Conference. The conference
brings together cereal and livestock traders, agricultural
market information service providers and public sector officials
to discuss regional agricultural market prospects for the
coming year. A key result of these meetings has been the creation
of the West Africa Traders’ Network, a forum for exchanging
market information, assessing the food situation and initiating
commercial negotiations. To date, the Network has facilitated
trade of approximately 50,000 MT of cereals within the region
and the export of 500 head of Malian livestock to Guinea.
The Network reduces transaction costs and other impediments
to trade. It represents a major step forward in regional economic
integration.
Within Mali, USAID partners work with several
cooperatives and agribusinesses to promote production and
trade in alternative commodities such as green beans, mangos,
hibiscus, potatoes, tomatoes and onions. In the Upper Valley
of the Niger, USAID support has helped farmers exploit niche
markets, both domestically and internationally, generating
over $2 million (US) in 1998 or an average of $567 per farmer.
In 2000, about 3,700 farmers, of whom 80 percent were women,
participated in the production of alternative commodities.
USAID has provided support to the Central
Veterinary Laboratory to improve efficiencies in livestock
vaccine production and marketing. As a result, the laboratory
is a leading producer of livestock vaccines in the Sahel.
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Promoting Natural Resources Management
to
Improve Agricultural Sustainability
Natural resources management is one of the
biggest challenges facing Mali today. Reversing soil degradation
and desertification are complex processes requiring new technologies,
training and community collaboration. Two recent studies indicate
substantial progress in a zone (Upper Valley of the Niger)
where USAID and its partners have been working for 10 years.
In this zone, 67 percent of farmers have adopted practices
that improve the management of natural resources and enable
diversification and intensification of farm enterprises. Practices
include contour dikes (from vegetation or rocks), contour
plowing, mulching, composting, applying manure and mineral
fertilizers and using crop rotation cycles. These practices
enable the reclaiming of land that was previously unuseable
and increase yields on existing farmland. For example, yields
of sorghum in one village nearly doubled from 1989 to 1998.
Yields for maize, groundnuts and cotton nearly doubled too.
The community-level focus of USAID’s efforts
is important. Local governance is improving through village
associations organized to improve the management of shared
resources, such as timber. Furthermore, a large number of
young men are choosing to remain in the community instead
of seeking work in the capital city. Surveys conducted in
2000 indicate that farmers believe life is better than it
was 10 years ago. They are optimistic and enthusiastic about
the future.
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Building Capacity in Microfinance Institutions
to
Increase Access to Credit
USAID provides technical assistance to microfinance
groups, including the newly-created Professional Association
of Microfinance Institutions. All assistance is provided in
response to requests from organizations. It includes building
professional capacity for financial management, business planning,
improved practices and management information systems. During
2000, USAID-supported microfinance institutions increased
the amount of savings mobilized by 15 percent and increased
the amount of loans outstanding by 4 percent. The mission’s
role in promoting microfinance within Mali led to policy discussions
with the Central Bank of West Africa on revisions to the law
governing microfinance and to discussions between microfinance
groups and the formal banking sector.
One of USAID’s partners in microfinance development
is World Education, a private voluntary organization that
oversees 19 women’s microfinance credit unions throughout
Mali. In 1998, the program helped nearly 3,700 women gain
access to credit; repayment rates were 98 percent. One of
the women borrowers was Djane Sy, a ginger seller in her neighborhood
market. In 1997, she was the program’s first client. With
a loan of $100, she expanded her ginger business to include
produce such as tomatoes, peppers and okra. When she had repaid
her loan, she borrowed again to further diversify her business.
Mrs. Sy supports a family of nine, including six children.
The children have been the beneficiaries of her growing business.
With the increasing profits, she has been able to pay their
school tuition.
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