IsDB and IFAD Expand Partnership to Mobilize 750 Million Dollars for Food Systems

You will see that the Islamic Development Bank and the International Fund for Agricultural Development have signed a new cooperation agreement to mobilize up to seven hundred fifty million dollars for food systems and rural transformation. The deal combines the financing strength and technical expertise of both institutions to support sustainable agricultural development across member countries. You can expect the partnership to focus on improving market access and climate resilience for smallholder farmers.

Dr. Muhammad Al Jasser stated that the renewed partnership builds on nearly five decades of successful cooperation and emphasized that joint efforts will strengthen resilience and expand opportunities for rural communities in food systems. "Together, we will leverage our collective expertise and resources to strengthen resilience, expand opportunities, and improve the lives of rural communities across our member countries," he said.

Alvaro Lario explained that the agreement scales up investment in the first mile to create jobs and raise incomes. "Through this agreement, we are scaling up investment in the first mile of food systems to create jobs, increase incomes and build more prosperous and resilient rural economies." "When rural people have the opportunity to build businesses, connect to markets, and earn a decent living, the benefits extend far beyond rural areas."

The new cooperation agreement includes a joint action plan that covers agribusiness value chains, market access, rural finance, climate adaptation, sustainable natural resource management, and water access to strengthen food systems. It also opens the door for expanded private sector operations that support agribusinesses and rural small to medium enterprises. You will see that these measures aim to improve productivity and resilience across the agricultural value chain.

The partnership will draw on the wider IsDB Group including the Islamic Corporation for the Development of the Private Sector, the International Islamic Trade Finance Corporation, and the Islamic Corporation for the Insurance of Investment and Export Credit. This collaborative approach creates new avenues for blending development finance, trade finance, investment, and risk mitigation to support rural transformation and food systems.

Since the partnership began in 1980 the two institutions have cofinanced twenty nine projects with a combined value of approximately one point four five billion dollars. The new seven hundred fifty million dollar target signals a joint commitment to accelerate investment in food systems across common member countries. You can expect this scaling up to deliver larger impacts for rural communities and agricultural productivity.