Background & Objectives

• Armenia, a lower middle-income nation, has a GDP per capita of $4,967 (2021). It is a landlocked, mountainous country with only 17% arable land. Agriculture plays a key role in its economy, involving around 350,000 smallholder households. Agriculture contributes 11% to GDP and ensures 65% of domestic food demand. Government efforts focus on water resource management and modernizing irrigation to boost high-value agriculture.
• The general objective is to provide institutional and technical support to the Ministry of Economy (MoE) in agricultural policy reform and project implementation, while ensuring communication with AFD and EU.

Activities

• Component 1: Technical Assistance to MoE Strengthen MoE policy, capacity, and financial mechanisms. Establish agricultural extension services (AESTs).Promote high-value agriculture, cooperatives, and water policy coordination.
• Component 2: Investment Grants Design and implement Matching Grant, Collateral, Land Consolidation, and Cooperative Funds. Provide training and financial tools for farmers and cooperatives.
• Component 3: Communication & Management Develop communication strategy, recruit staff, and monitor project progress.

Results

• Modernize 2,000 ha irrigation.
• Support 20 cooperatives.
• Launch 10 land projects.
• Establish 2 MESPs.
• Hold 3 meetings.
• Component 1:Strengthen MoE policy, recruit AESTs, promote agriculture.
• Component 2:Set up grant and funding mechanisms.
• Component 3:Implement communication, recruit, monitor.