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Productive alliances promote rural agricultural competitiveness in Honduras

By Bufete Mejía & Asociados - 16/05/2022

The Honduras Rural Competitiveness (COMRURAL) project supported the creation of 120 business plans for small, rural producer organizations involved in value chains for coffee and other agricultural products, which increased productivity and boosted beneficiary sales by nearly 24 percent.

More than 12,878 people (of whom 23 percent were women and 33 percent from Indigenous communities) benefitted from matching grants, managerial trainings, and improved access to markets financed by the project.

Additionally, approximately $1.35 in private capital was mobilized for every dollar in International Development Association (IDA) financing, paving the way for private and commercial partnerships with the productive alliances.

The development objective of the COMRURAL project was to contribute to increased productivity and competitiveness among organized rural small-scale agricultural producers through their participation in productive alliances. The project drew on IDA experience with projects that successfully promoted private sector participation and leveraged the World Bank’s convening power to facilitate the entry of private financial institutions (PFIs) and commercial partners into productive alliances.

This paved the way for the promotion of sustainable productive technologies, combined with improved access to markets as an effective strategy for smallholder producers. The use of credit guarantees and matching grants strengthened productive and managerial skills for beneficiaries and improved their bankability. The promotion of technologies such as climate-smart agriculture and good environmental practices reduced risks and promoted value addition. These included: (a) adoption of improved practices by all sampled RPOs, including organic fertilizers (for example, coffee pulp), drought- and disease-resistant seed varieties, drip irrigation techniques and micro greenhouses.

By Bufete Mejía & Asociados - 16/05/2022
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