Implementation Guidelines for the Investment Fund

The implementation of the FondeAgro program under the Ministry of Agriculture and Forestry, financed by Sida, started in 2001 and is planned to cover a period of ten years, divided into three phases.

The program aims at increasing the quality and production of coffee and livestock products in five municipalities in Matagalpa and Jinotega (Matiguás, Río Blanco, Paiwas, Wiwilí and El Cuá). The programme includes components such as: product diversification and commercialization, homestead economy, credits for production investment, land rights issues and institutional support at ministry and municipal level. The project activities have a high degree of participation by different regional stakeholders, local population and their local governments.

The overall objective is poverty alleviation through increasing income in the rural parts of two provinces in Northern Nicaragua.The main target group is small and medium coffee and dairy farmers who nevertheless have potential for development through more intensive farm management. The objective for the farmers is to increase their income through a sustainable management of the production capacity of the farm, for which they develop farm management plans, which combine economical, environmental and social aspects. Other important beneficiaries of the programme are farm owners who are being supported in accessing credit and farmers supported in technical assistance for homestead economy. The programme is implemented together with regional and local co-implementators, especially within the provision of credit and technical assistance, and these institutions are also beneficiaries of the programme in receiving capacity building and institutional support. Institutional support is also given to the Ministry of Agriculture and Forestry and to the municipalities.