The Secretary of State for Finance and Economic Affairs, Musa Gibril Bala Gaye, last Wednesday expressed the view that due to inactive weather, mass degradation and inefficient market storage, agricultural production is decreasing in The Gambia. Secy Bala Gaye made this remark while moving the motion for the ratification of a US 6.12 million for the International Fund for Agricultural Development (IFAD) loan agreement for the rural finance project before members of the National Assembly.

He observed that with almost half of the population living in the urban area, rural families rely on livelihoods that require little or no land, but lamented that few people could access credit to finance other activities.

He however enthused that with the commencement of the project, about 180,000 poor people in the rural areas of The Gambia would have better access to savings plans, credit, insurance services and business advice.

"The project," he continued, "will also provide skills and technical training to local micro finance institutions in six rural divisions in The Gambia and help project participants to identify and develop new financial products such as business development services for rural credit as well as improve the management information system and expand the outreach of their services."

Secy Gaye noted that the Rural Finance Project would seek to benefit the economically active rural poor including the food insecure households with special attention to women and other vulnerable categories in local societies such as rural youths and minorities. "The goal of the project is to create an enabling environment for rural micro-finance institutions, to ensure that micro finance institutions have consolidated access to qualified support, to forge partnership with other projects and to use loans resources effectively," he said.

Meanwhile, according to the loan agreement, the borrowers shall repay the outstanding amount of the loan in 59 equal semi-annual installments or after a grace period of 10 years commencing November 15, 2006, and the final payment in May 2046. "The borrowers shall also pay a service charge of 0.75% per annum or the amount of the loan outstanding from time to time payable semi annually," the agreement stated.