This component will provide much-needed financial support to farmers and agro-processors benefiting from the technology training and irrigation support provided under Component 1.  The provision of irrigation, for e.g., would improve the potential of year-round water availability that is critical to improving agricultural productivity and commercialization in Lesotho’s agriculture. 

Financing support in the form of matching grants will enable the cash-constrained farmers to capitalize on the availability of irrigation and training in CSA technologies for on-the-ground productive and sustainable investments.  Investment support will be provided in selected high potential value chains (VCs), including horticulture, potatoes, small-scale piggery and small-scale poultry.

The component will support horizontal and vertical alliances that would result in the integration of a greater number of smallholder producers in these potentially remunerative VCs, incentivize contract farming, build trusted commercial partnerships between farmers and private agri-businesses and drive enterprise operations towards more lucrative domestic and export markets. 

Support in horticulture and livestock value chains will also contribute to improved nutritional outcomes as it will improve availability of and access to diverse nutrient-dense foods such as fruits and vegetables as well as protein-rich dairy and meat products.  Activities under the component are therefore expected to result in the positive outcomes of job creation, improved beneficiary incomes, better nutritional outcomes and increased economic opportunities for women and youth in the rural sector.