Summary

Opportunities for economic advancement in rural Grenada were concentrated in the agriculture and fisheries subsectors with linkages to micro and small-scale enterprises, however, the agriculture sector suffered from limited investment in production technology and marketing systems and the absence of a business approach to enterprise development. This affected the ability of small farmers to compete favourably in the sector and penetrate higher-end markets for their agricultural output. Consequently, the Government of Grenada (GOGR) embarked on a transformation programme aimed at improving the performance of agriculture in the rural economy. Funding was required to support this initiative which sought to increase sector output and competitiveness and the ability of small farmers to respond to increasingly stringent market demands. On October 21, 2010, the Board of Directors of the Caribbean Development Bank approved a loan in the amount of three million United States dollars (USD3 mn) to the GOGR for the joint financing of the Market Access and Rural Enterprise Development Project. The overall objective of the project was to enhance the livelihood of rural households through the strengthening and establishment of rural businesses/clusters; the upgrading of technical and business skills among rural enterprises; strengthening value chains and fostering better linkages between production and markets; and the provision of affordable credit. The assessment focused on the core evaluation criteria of relevance, effectiveness, efficiency and sustainability, as well as the complementary criteria of CDB and Borrowers’ performance.