The IFAD Executive Board approved today a loan for an amount of US$ 72 million to finance the Sustaining Poverty Reduction through Agribusiness Development in South Shaanxi Project (SPRAD-SS).
The project is aimed at moving poor rural households residing in nine counties within the three municipalities of Hanzhong, Ankang, and Shangluo in the Qinba Mountains in south Shaanxi Province (i.e. Zhenba, Nanzheng, Xixiang and Mianxian counties in Hanzhong Prefecture; Hanyin, Pingli and Langao counties in Ankang Prefecture; and Danfeng and Shanyang counties in Shangluo Prefecture) out of poverty - and ensure they remain out of poverty - through the development of inclusive, equitable and sustainable value chains.
The project is expected to reach out approximately 340,000 individuals, and directly benefit about 100,000 nationally registered poor in the project area.
A special feature of the project is the envisioned collaboration with Ant Financial, an online payment company (Alipay), affiliate of Alibaba Group. Areas of possible collaboration include improving market access for rural producers through e-commerce platforms and value-chain financing for promising rural agribusinesses.
The total project cost is estimated at US$ 257 million. The Government of China will contribute to approximately US$ 80 million. Participating enterprises and cooperatives are expected to contribute approximately US$ 102 million.