World Bank and IFAD Sign Co‑Financing Agreement to Boost Rural Transformation

You learned that the World Bank and IFAD signed a new co‑financing framework agreement in Bangkok during the 2026 IMF and World Bank Annual Meetings; the deal aims to expand joint investment in rural transformation and food systems. The agreement will strengthen collaboration between the two institutions and seeks to build resilience while promoting entrepreneurship and job creation across rural areas.

Alvaro Lario, President of IFAD, said, "Together, the World Bank and IFAD bring the scale, reach and expertise to transform rural economies and agrifood systems." He added that the agreement will enable shared ambition to become greater investment, more jobs, stronger resilience and improved food security for millions. This partnership drives rural transformation across many regions by linking finance with local knowledge and community needs for you.

Ajay Banga, President of the World Bank Group, said, "The next generation needs opportunity, and agriculture can be a powerful source of jobs, growth, and food security." He continued by explaining that AgriConnect is designed to deliver those significant opportunities to millions of young people for you. The joint effort advances rural transformation by connecting smallholder farmers to markets and private capital worldwide for you.

The World Bank Group remains IFAD's largest multilateral development bank partner, with collaboration spanning co‑financing, policy engagement and global initiatives. IFAD's co‑financing with the World Bank's International Development Association more than doubled from approximately US$646 million in 2021 to US$1.56 billion in 2025. These figures illustrate how rural transformation is gaining momentum through joint programmes such as AgriConnect and Water Forward for you.

A national investment of US$70.5 million in Lesotho has already created nearly 1,500 jobs, provided nutrition education to 217,000 people, and strengthened local food systems. More than 106,000 people have adopted climate‑smart agricultural practices while agro‑weather services have reached over 900,000 people worldwide. This project demonstrates how rural transformation can deliver tangible benefits on the ground for families and communities for you.

The new framework modernizes arrangements for co‑financing country‑level investments between the two development finance institutions across multiple sectors. It also facilitates common arrangements for technical support, procurement, financial management, disbursement, and environmental and social oversight throughout the project cycle. The agreement will initially remain in force for five years and will automatically renew for a further five‑year period, supporting ongoing rural transformation for you.