Critical Changes in the Funding Mechanism

MID-TERM REVIEWBUSINESS PRODEL

The mid-term review of the Livestock Development Project, PRODEL, brought significant changes within the said component.
Landing confirmed for October 2nd, 2020 in Garoua
September 16, 2020
Precise Expectations in Breeding “Business”
September 16, 2020

Critical Changes in the Funding Mechanism

The review of priorities comes first. They are now as follows: improve the performance of the Project’s target value chains, improve access for animal products to the markets, establish functional productive partnerships between buyers and producers, and facilitate the creation of viable and sustainable businesses in the livestock sector. Even the revision of the profile of beneficiaries is effective. Individual promoters are also already included in the list of beneficiaries. The other novelty concerns groups of individuals structured as public limited companies, SA, limited liability companies, SARL, or economic interest group, GIE. They have become the target of possible funding. It goes without saying that the producer organizations, OPs, continue to represent the initial beneficiaries.

The opening up of grants to individuals, benefits from measured supervision. Individual projects focus on milk and honey. The choice in question is part of the commitment of the public authorities to provide incentives in the two sectors in question. Moreover, these subsidies are aimed at specific links along the value chain: processing and supply of inputs, including genetic material and feed.

The 60/40% configuration is maintained. In absolute value, it is 75 million francs contribution from PRODEL and 50 million francs as counterpart from the beneficiaries. The Project subvention has a ceiling. Recourse to bank credit by the beneficiary also becomes optional.

The originality of the mid-term review is also the advent of small-scale projects. Funding between 10 to 20 million francs benefits regions with little experience in setting up and running livestock projects as “business”: South, South-West, North-West and Far North. Such initiatives can be subsidized by PRODEL up to 90%, i.e 18 million francs. 10% co-financing or two million francs for these micro-projects. The beneficiary is free to do so with or without bank loan.