By Mehdi El-Nemr
ROME, Feb 17 (KUNA) -- Kuwaiti official at the International Fund for Agricultural Development (IFAD) Marwan Al-Ghanim stressed Sunday that his country will continue to support the fund's mission to stimulate the role of the private sector.
Al-Ghanim, also representative of Kuwait at the IFAD's Council of Governors, said in an interview with KUNA that the council, which approved the Eleventh Replenishment of IFAD's Resources, has created an innovative fund to expand the rural private sector in developing countries.
Kuwait is committed to continue to support the international agency through contributions so far exceeding USD 200 million, he added.
Al-Ghanim noted that the main challenges facing the Arab region are food security due to the suffering of the region and the Middle East with a great shortage of water resources, pointing to a European-Arab initiative to conduct a study to assess the importance of water management.
He affirmed that IFAD, EU and the African, Caribbean, Caribbean and Luxembourg Group agreed to establish an innovative fund to attract capital meeting the needs of rural areas in developing countries.
The capital fund aims to mobilize 200 million Euros over the upcoming 10 years, he added.
He noted that the fund will provide loans tailored to the needs of SMEs ranging from 200,000 to 800,000 euro.
In a statement, IFAD confirmed that the fund will be based in Luxembourg and will be managed by international investment companies.
IFAD Secretary-General Gilbert F. Houngbo, said, "Small and medium-sized enterprises can be an engine for development and offer rural communities a pathway out of poverty and hunger, but only if they can access the resources they need." (end) mn.aa