The World Bank Executive Board has approved a program to promote sustainable and competitive agriculture in Costa Rica. This initiative aims to enhance environmental sustainability, competitiveness, and economic participation for small and medium agricultural producers (PYMPAs) focusing on crops, livestock, fisheries, and aquaculture.
The program will benefit approximately 10,500 PYMPAs and their families, impacting an estimated 31,500 individuals. Among these, around 30% are women and 15% are young people. Additionally, 30,000 producers will benefit from registration on digital agricultural platforms. Costa Rica's Minister of Finance, Nogui Acosta Jaén, stated, "This project is a crucial step towards the sustainable development of our rural and most vulnerable communities."
A $120 million loan will support the Public Policy for the Agricultural Sector 2023-2032, with Costa Rica's Minister of Agriculture and Livestock, Víctor Julio Carvajal Porras, calling the credit "vital support for the transformation of the Costa Rican agricultural sector."
The operation will be structured as a Program for Results, with disbursements linked to achieving four key areas. Firstly, it will involve institutional modernization through a digital registration system, improving information management for producers. Secondly, it will enhance competitiveness by creating a product traceability system and expanding market linkages. The third area focuses on sustainable production by reducing carbon emissions and diversifying crops. Lastly, the program will focus on adding value to environmental benefits, including payments for carbon capture in production chains.
Carine Clert, World Bank Country Manager for El Salvador and Costa Rica, emphasized that the financing demonstrates long-term collaboration between the World Bank and the Costa Rican government, aiming to enable sustainable agricultural practices and economic development.