AGRICULTURAL ENTERPRISES PROJECT IN LAO PDR SUCCESSFULLY LAUNCHED
A project supporting agricultural enterprises along selected value chains in Lao PDR, was launched in January 2025. Funded by the Federal Ministry for Economic Cooperation and Development (BMZ) and the Green Climate Fund (GCF) through GIZ under the Climate Protection through Avoided Deforestation (CliPAD) programme, the project is implemented by GFA together with Village Focus International (VFI). It boosts sustainability and market competitiveness of agricultural enterprises across six northern provinces in the country.
GFA supports agricultural micro, small and medium-sizes enterprises (Agri-MSMEs) in adopting climate-smart practices, reducing supply chain risks, and improving market access. The project integrates financial assistance and technical assistance and focuses on value chain development and capacity building to strengthen climate-resilient agriculture. It aims at cutting land-use emissions by 11.7 million tons of CO2 while enhancing rural livelihoods and supporting at least 60 Agri-MSMEs with financial assistance.
In collaboration with national and provincial stakeholders including the Ministry of Agriculture and Forestry’s (MAF) REDD+ Task Force, the Environmental Protection Fund (EPF), and the Lao National Chamber of Commerce and Industry (LNCCI), GFA and VFI ensure alignment with national climate policies, REDD+ frameworks, and private sector priorities.
A key component is the Matching Grant Fund that offers Agri-MSMEs up to EUR 30,000, covering 50% of investment costs. These funds support deforestation-free, climate-smart value chains, sustainability improvements, and digital traceability solutions while excluding operational costs of the MSMEs.
Led by GFA, the project promotes climate-resilient agriculture, private sector-driven rural development, and sustainable forest landscape management. Through business development support, financial literacy training, market linkages, and policy dialogue, the initiative strengthens economic viability for Agri-MSMEs and contribute to emission reduction targets and rural poverty alleviation.
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