This Topic Guide is written for DFID staff, but is relevant to all development professionals. It comprises the following sections:
This Topic Guide is written for DFID staff, but is relevant to all development professionals. It comprises the following sections:
Security of land tenure and property rights has received much attention in recent years. While appetite for land reform initiatives is not new, investment is increasing steadily, as evidence emerges that secure tenure is key to achieving economic growth, food security and other development goals.
From the mid-1980s, growing populations have put pressure on land and other natural resources, which has resulted in increased poverty levels, land conflicts and concerns for global food security.
With Second Level Land Certification (SLLC), farmers gain increased security of tenure: this incentivises them to invest more in their land.
To allow for this productive investment to take place, the Land Investment for Transformation (LIFT) programme is working with micro finance institutions (MFIs) to roll out an innovative financial product: the SLLC-linked individual loan.
Accessing longer terms and larger size loans allows farmers to increase the productivity of their land, graduate from subsistence farming, and become more commercially oriented.
How LIFT promotes formalisation
The vision of Ethiopia (GTP-II) is to become a lower middle-income country by 2025
Microfinance institutions (MFIs) in Ethiopia are offering farmers a new financial product: the SLLC-linked individual loan product
With Second Level Land Certification (SLLC), MFIs have the security of knowing the ownership and exact landholding size of farmers. This has allowed the development of an innovative individual lending product that uses the produce of the land as a form of guarantee.
Supporting the agriculture sector
The GoE with technical support from the Land Investment for Transformation (LIFT) programme is issuing Second Level Land Certificates (SLLC) to increase the land tenure security of farmers. As a result, farmers are more willing to invest in their land in a productive and sustainable way. However, to allow for increased productive investment, farmers must have access to improved agri-inputs and technologies that are climate smart: this is currently a challenge in most rural areas.
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