[Lesotho] IFAD Financing to Boost Wool and Mohair Production
The Kingdom of Lesotho and the International Fund for Agricultural Development (IFAD) signed an agreement for a US$5.8 million loan, a $5.8 million IFAD Debt Sustainability Framework grant and an additional $7 million grant from IFAD's Adaptation for Smallholder Agriculture Programme (ASAP) to finance the Wool and Mohair Promotion Project (WAMPP).
In the Kingdom of Lesotho, nearly 70 per cent of the population lives in rural areas, most of which lies in the high mountains where rates of poverty are worse. There, the main source of income comes from raising sheep and goats for wool, high quality mohair and meat.
Recently, however, the livelihoods of smallholder farmers in the region have been declining due to a reduced quality and quantity of wool and mohair fibres for production. In addition, herders have become vulnerable to climate-related shocks as a result of climate change.
The new project aims to help smallholder livestock producers generate higher incomes and more sustainable livelihoods. With the integration of the IFAD loan and grant, WAMPP will boost the resilience of poor smallholder wool and mohair producers to adverse effects of climate change in the Mountain and Foothill Regions of the country.
With a total cost of $38.9 million, the project includes cofinancing contributions of $4 million from the Government of Lesotho, $12 million from the OPEC Fund for International Development, and $1.5 million from the Lesotho National Wool and Mohair Growers Association. Project participants will contribute their labour by helping to build some of the infrastructure.