IFAD Regional Grant: Safeguarding Rural Livelihoods

The International Fund for Agricultural Development (IFAD) is inviting eligible institutions to apply for a US$500,000 regional grant to strengthen the resilience of rural households and local economies against potential remittance disruptions in Latin America and the Caribbean. The 24-month project will support research, policy dialogue, financial sector readiness, and the development of innovative remittance-linked financial products across five target countries.

About the IFAD Regional Grant

The International Fund for Agricultural Development (IFAD) has launched a regional grant opportunity to strengthen the resilience of rural communities that depend heavily on remittances.

The initiative seeks to address the growing uncertainty surrounding international migration, changing economic conditions, and evolving regulatory environments that could disrupt remittance flows. Since remittances are a critical source of household income for millions of rural families, the project aims to help governments, financial institutions, and development partners prepare for future shocks through evidence-based planning and innovative financial solutions.

Programme Objectives

The grant aims to:

Strengthen rural resilience to remittance disruptions.
Improve financial inclusion for rural households.
Enhance rural finance systems.
Generate evidence to support informed policy decisions.
Promote stakeholder collaboration across the region.
Build financial sector readiness for future remittance shocks.
Develop scalable remittance-linked financial products.
Strengthen institutional capacity and regional cooperation.

Why This Grant Matters

Remittances play a vital role in supporting rural livelihoods across Latin America and the Caribbean.

Many households rely on money sent by family members working abroad to cover:

Food and nutrition.
Education.
Healthcare.
Housing.
Agricultural production.
Small business investments.

However, changes in migration patterns, economic instability, or regulatory reforms in destination countries can reduce remittance flows, creating significant risks for rural communities.

This IFAD initiative seeks to help countries anticipate these risks and develop practical solutions that improve long-term economic resilience.

Priority Focus Areas

The programme supports activities related to:

Remittances.
Rural livelihoods.
Financial inclusion.
Rural finance systems.
Migration.
Diaspora investment.
Evidence generation.
Policy dialogue.
Stakeholder engagement.
Financial sector readiness.
Remittance-linked financial products.
Rural economic resilience.
Regulatory analysis.
Knowledge management.
Institutional capacity building.
Regional collaboration.

Target Countries

The regional project will be implemented in five countries:

These countries were selected because of:

High dependence on remittances.
Their importance within IFAD’s regional portfolio.
Their vulnerability to potential remittance disruptions.

Project Components

The selected institution will implement two interconnected components.

Component 1: Regional Research and Evidence Generation

The first component focuses on developing practical knowledge for decision-makers.

Activities include preparing:

A regional analytical framework.
Five country analytical profiles.

The analyses will examine:

Remittance markets.
Financial inclusion.
Rural finance systems.
Regulatory environments.
Institutional capacity.
Vulnerability hotspots.
Potential impacts of remittance disruptions on rural households and local economies.

Component 2: Stakeholder Engagement and Financial Sector Readiness

The second component focuses on translating research into practical action.

Activities include:

National stakeholder consultations.
Validation of research findings.
Identification of priority interventions.
Consensus building among public and private stakeholders.

Participants may include:

Governments.
Financial institutions.
Remittance service providers.
Civil society organisations.
Development partners.
Other relevant stakeholders.

Intensive Country Support

Based on the assessment findings, two countries will be selected for additional support.

This will include assistance to:

Develop innovative remittance-linked financial products.
Adapt existing financial services.
Pilot new financial solutions for rural communities.

Technical Assistance

The project also provides technical support to selected financial institutions.

Areas of assistance include:

Institutional readiness assessments.
Product innovation opportunities.
Design of pilot-ready financial products.
Implementation planning.
Scaling strategies for future programmes.

Expected Outputs

The project is expected to produce:

Regional analytical framework.
Five country analytical profiles.
Country prioritization framework.
Stakeholder consultation reports.
Financial sector readiness assessments.
Remittance-linked product prototypes.
Pilot implementation roadmaps.
Scaling frameworks.
Country response packages.
Evidence supporting future IFAD programming.

Grant Amount

IFAD will provide:

US$500,000 in grant financing.

Co-financing Requirements

Applicants are encouraged to contribute co-financing.

Minimum contributions are:

20% for non-private sector organisations.
25% for private sector recipients.

Contributions may include:

Cash.
In-kind support.

Project Duration

The project implementation period is:

Up to 24 months.

Who Is Eligible?

Eligible applicants must be institutions with demonstrated expertise in the programme’s thematic areas.

Applicants must demonstrate at least five years of experience in:

Remittances.
Migration.
Rural development.
Financial inclusion.
Rural finance systems.
Policy and regulatory analysis.
Applied research.
Stakeholder engagement.
Knowledge management.

Applicants should also demonstrate an operational presence in Latin America and the Caribbean.

How to Apply

Applicants should follow these steps.

Step 1: Review the Grant Requirements

Ensure your institution:

Meets eligibility requirements.
Has the required regional experience.
Can implement all project components.

Step 2: Develop a Technical Proposal

The proposal should explain:

Project methodology.
Research approach.
Stakeholder engagement strategy.
Financial sector support activities.
Expected outcomes.
Monitoring framework.

Step 3: Prepare the Budget

Include:

Grant request.
Co-financing contribution.
Activity costs.
Implementation timeline.

Step 4: Submit the Proposal

Submit the completed proposal and all required supporting documents according to IFAD’s application guidelines.

Tips for a Strong Proposal

Applicants can improve their chances by:

Demonstrating extensive regional expertise.
Showing experience in remittance and rural finance research.
Presenting a clear stakeholder engagement strategy.
Explaining how findings will lead to practical policy solutions.
Including strong partnerships across the target countries.
Demonstrating institutional capacity to deliver regional projects.

Common Mistakes to Avoid

Avoid:

Providing insufficient evidence of regional experience.
Weak stakeholder engagement plans.
Incomplete co-financing information.
Poorly defined implementation timelines.
Lack of practical pathways from research to policy action.
Limited understanding of remittance systems and financial inclusion.

Expected Impact

The programme aims to:

Improve resilience of remittance-dependent rural households.
Strengthen rural financial systems.
Enhance government preparedness.
Support financial product innovation.
Improve evidence-based policymaking.
Increase regional collaboration.
Strengthen long-term rural economic resilience.

Frequently Asked Questions (FAQ)

1. What is the IFAD Regional Grant about?

It is a regional funding opportunity supporting initiatives that strengthen resilience to potential remittance disruptions across Latin America and the Caribbean.

2. How much funding is available?

IFAD will provide US$500,000 in grant financing.

3. Which countries are included?

The project covers:

El Salvador.
Guatemala.
Honduras.
Mexico.
Dominican Republic.

4. Who can apply?

Eligible institutions with at least five years of experience in remittances, migration, rural development, financial inclusion, applied research, and stakeholder engagement in Latin America and the Caribbean.

5. Is co-financing required?

Yes. Non-private sector organisations are encouraged to provide at least 20% co-financing, while private sector organisations should provide at least 25%, through cash and/or in-kind contributions.

6. How long can the project last?

Projects may be implemented for up to 24 months.

7. What are the expected outputs?

Outputs include regional analyses, country profiles, stakeholder consultation reports, readiness assessments, financial product prototypes, pilot roadmaps, scaling frameworks, and country response packages.

Conclusion

The IFAD Regional Grant presents a significant opportunity for experienced institutions to strengthen rural resilience against remittance disruptions in Latin America and the Caribbean. By combining research, stakeholder engagement, financial sector innovation, and evidence-based policy development, the programme seeks to help vulnerable rural communities better withstand future economic shocks while improving financial inclusion and sustainable rural development.