AFN II Context
AFN II Context
The Government of Lao PDR (GoL) and IFAD (International Fund for Agricultural Development) have agreed to allocate part of the Twelfth Replenishment of IFAD’s Resources 2022-2024 (IFAD 12) to funding the second phase of the Agriculture for Nutrition Project (AFN II). Building on the results of the first phase of the Agriculture for Nutrition project, and with support from the International Fund for Agricultural Development (IFAD) and the World Food Programme (WFP), the Government of Lao PDR received new funding from the Global Agriculture and Food Security Programme (GAFSP) US$20 million to implement the project as outlined in the funding proposal. The GAFSP grant is complemented with an IFAD loan of US$13.2 million.
The economy of Lao PDR has been through a rapid transition over the last two decades, with strong growth and large investments in the natural resource sector (hydropower, mining, land concessions) and infrastructure (railways, toll ways). However, since the start of the COVID-19 pandemic in 2020, socio-economic development has been constrained by increasing macroeconomic instability (public debt, inflation, stagnant GDP growth), growth in joblessness, rising inequalities, and growing vulnerability to climate change, environmental degradation, and shocks (e.g., economic, health, and natural). These challenges have been aggravated by the ripple effects on global supply chains of the Ukraine conflict.
The agriculture sector remains critically important to the rural economy, employing more than 60% of the work force (64% for women), with most agriculture workers being self-employed in small-scale and primarily subsistence family farming. However, vulnerable people in rural areas is three times higher than in urban areas, and rural households remain disproportionately affected by poverty, food insecurity, and malnutrition.
Building on the success and lessons learned from the first phase, AFN II aims at addressing the above development problem by investing in nutrition-sensitive agriculture interventions and by adopting an inclusive, gender-transformative approach. AFN I demonstrated that by promoting sustainable climate resilient agriculture practices, and strengthening the capacity of community based-organizations, household income has increased and there has been significant improvement in nutritional outcomes. A decentralized approach and community-based planning processes have enhanced ownership and sustainability and have visibly empowered rural women, including members of ethnic groups.
The project has a duration of 7 years, starting in July 2023 and phasing out by June 2030.
Project Goal and Objective
The Goal of the Project is to enable 28,000 vulnerable households living in the project area to improve their income by 20% by 2030.
The Project Development Objective is to enable 28,000 vulnerable households living in the project area to improve their food and nutrition security, to enhance their climate resilience and to increase smallholders’ income by 2030
Funding Organization
Project Target Area
The Project will be implemented in 20 districts and 500 villages in Phongsaly, Oudomxay, Xiengkhouang, Salavan, Sekong, and Attapeu Provinces.
Out of a total of 500 target villages, AFN II will support 125 villages in convergence districts which have already received support in the first phase. It will also support 375 villages in non-convergence districts, including villages involved in the recently completed, IFAD funded, FNML project in the three southern provinces.
| Province | Convergence Districts | Non-Convergence Districts | Target Districts | Target Villages |
|---|---|---|---|---|
| Phongsaly | Bountai, Samphanh, Khua | Phongsaly, Nhot Ou | 5 | 125 |
| Oudomxay | Lah | Bang, Nga, Pakbeng | 4 | 100 |
| Xiengkhouang | Nong het | Mok | 2 | 50 |
| Salavan | Samuoi, Ta-Oi, Toomlarn | 3 | 75 | |
| Sekong | Dak Cheung, Kaleum, Lamam | 3 | 75 | |
| Attapeu | Sanxay, Sanamxay, Phouvong | 3 | 75 | |
| 6 Provinces | 5 Districts | 15 Districts | 20 | 500 |
Target Population
Component Information
The project has three technical components depicted below:
Component 1:
Community-driven agriculture- and natural resources-based nutrition interventions establishment
Component 1: Community-driven agriculture- and natural resources-based nutrition interventions establishment
Sub-component 1a: Improved nutritional status of women, children, girls, and vulnerable groups
Sub-component 1a will produce the following outputs:
- 28,000 households receive improved nutrition services and training ;
- 15,000 people, mainly women, implement home garden grants and receive training; and
- 400 villages receive support for food conservation and storage, including 250 rice banks.
Sub-Component 1b: Improved agriculture productivity of selected commodities
Sub-Component 1b will produce the following outputs:
- 22,400 household members receive productivity enhancing support by implementing grants for Agriculture Production Groups (APGs);
- 10,000 households receive inputs or services on climate resilient or sustainable agriculture practices;
- 68,000 ha of land-area receive improved production support; and
- 960 producer-based organizations are supported (860 APGs and 100 WUG).
Component 2: Business Partnerships and Market Access improvement
Component 2 aims at improving physical access to markets, processing, and storage. It will produce the following outputs:
- Build or rehabilitate 375 processing, storage, and market facilities (storage, collection points, etc.);
- Support 600 producers’ organization (APGs) to engage in formal partnerships/agreements or contracts with public or private entities in food value chains, through Multi-Stakeholder Platforms (MSP) and matching grant facilities;
- 50 MSMEs join the SUN Business Network as new members and receive business development, marketing support, and access to finance; and (iv) rehabilitate existing rural access tracks.
Component 2:
Business Partnerships and Market Access improvement
Component 3:
Enabling environment
Component 3: Enabling environment
Component 3 will deliver the following outputs:
- 30 substantive deliverables on food security and nutrition processes are completed in the form of multisectoral nutrition plans linked with the current NPAN and SEDP for the period 2021-2025;
- 5 knowledge products are completed with project support related to agriculture, natural resources management, promotion of wild foods, and food/nutrition security thus contributing to policy dialogue and preparation of the NPAN and SEDP for 2026-2030; and
- Around 40 CSOs directly contribute to supporting communities in implementing their village nutrition plans and other nutrition-sensitive interventions involving women, youth, ethnic groups and people with disabilities.
Implementation Partners
