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COMMON FUND FOR COMMODITIES
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Pilot Project on Increased Farm Income from Banana-Based Beverages in the Lake Victoria Basin (CFC/FIGB/13)

 

Common fund loan: USD 2,000,000

 

The project goal is to increase employment and other income-earning opportunities in rural areas, which may slow down the rapid rural migration to the cities of the region, as well as overdependence of people in the region on the resources around Lake Victoria. As one of the opportunities to reach this goal, the project will pilot the participation of small-scale farmers in the banana beverage market in order to diversify their income which so far is mainly based on coffee. Activities of the project focus on linking small scale banana farmers with the fruit juice processing industry and at the same time on assisting fruit juice processors to expand their capacity in order to absorb considerable amounts of locally produced bananas and other fruits. The current project is currently on hold since co-finance from other development partners has not materialized as pledged. The loan is not effective yet because two banks contacted did not indicate any interest to undertake the loan activities in both countries. Finally after a monitoring visit, CFC agreed with the PEA to stop all operations and to cancel the loan. The formal cancellation of the project is expected in 2012.