Tag Archives: IFAD

UN Invests 8 Billion USD In World’s Poorest Countries To Grow World’s Food

Rome, 17 July 2023 – In 2022, despite conflict, climate change and the continued stresses of the COVID-19 pandemic which threatened the food security and livelihoods of millions of rural people, the UN’s International Fund for Agricultural Development (IFAD) invested US$7.96 billion in rural areas in the world’s poorest countries, according to its annual report released today.

“2022 was a particularly challenging year for rural people the world over. Rural communities have acutely felt the effects of this triple crisis on their food systems, which are a critical source of livelihoods – as well as essential nourishment – for them, and for the millions of people who depend on them,” said IFAD President Alvaro Lario in the report foreword.  

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© IFAD/ Didor Sadulloev

“We need to support rural people to cope with present crises. But we also need to invest in building food systems that can support and nourish their families and communities, and help feed the world into the future.”  

The annual report captures the organization’s activities, special initiatives and new funding sources as well as impact data. Analysis of the 2022 total rural development project portfolio reveals that 90% of core resources went to low-income countries (LICs) and lower middle-income countries (LMICS). IFAD has since committed to increase that ratio to 100% going forward. Data verification also showed that more than 90% of IFAD’s climate finance is invested in initiatives that enable rural people to adapt to climate change. In addition, it showed that more than half of project participants are women.

In 2022, IFAD launched the Crisis Response Initiative to protect livelihoods and strengthen resilience in 22 countries most in need as a consequence of the war in Ukraine. It focuses on tailored interventions to prevent hunger and food insecurity arising, while supporting sustainable food systems.

In 2022, impact data reveals that between 2019-2021, as a result of IFAD’s investments: more than 77 million people increased their incomes; more than 62 million people expanded their productive capacities; more than 64 million people improved their market access and 38 million people strengthened their resilience. IFAD is the only international financial institution that systematically measures the impact of its investments.

Assessments of the Rural Poor Stimulus Facility – IFAD’s COVID-19 response initiative launched in 2020 to help people survive pandemic-caused financial losses while protecting the global food supply – showed that at least three quarters of participants maintained or increased their levels of production and income, despite the impacts of the pandemic.

 “Doing more to get more finance is critical; but we also have to continue to ensure that the people who need it most are the ones who benefit. This is another part of what makes IFAD unique, and we are maintaining our commitment to devote 100% of our core funding to the poorest countries,” wrote Lario. For the Silo, Julie Marshall.

Read the report

IFAD is an international financial institution and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than US$24 billion in grants and low-interest loans to fund projects in developing countries.  

Canada Fights Food Crises By Committing highest-ever funding to UN agency IFAD

Rome, December 2021 – At a time when rural people in low-income countries face steep increases in food prices and the devastating impacts of climate change are contributing to a rise in hunger and poverty, Canada has announced today its commitment to support the resilience of small-scale farmers and the prosperity of rural communities by increasing its funding to the UN’s International Fund for Agricultural Development (IFAD).

The Canadian Minister of International Development, Harjit S. Sajjan, announced at a side event of the Tokyo Nutrition for Growth Summit today that Canada will commit an extra CA$37.5 million (about US$27.7 million) in support of IFAD’s Twelfth Replenishment – a process whereby Member States commit funds to the organization for its work over three years beginning in 2022. 

This represents a 50 percent increase to the government’s initial pledge of CA$75 million (approximately US$55.5 million) bringing the total contribution of Canada to CA$112.5 million (about US$83.2 million).

In addition, Canada contributed a loan on very favorable terms amounting to CA$340 million (around US$255 million) to support climate smart and gender-sensitive agriculture approaches. Actions like this will help IFAD meet its commitment to double its impact by 2030 while making much-needed progress on reaching the Sustainable Development Goals, particularly SDG#1 (no poverty) and SDG#2 (zero hunger).

 “Canada and IFAD have a long-standing partnership to end poverty and hunger in rural areas. We would like to sincerely thank Canada for stepping up its commitment to help the world’s most vulnerable people build their resilience and ability to adapt to the devastation created by climate change and other recent shocks,” said Gilbert F. Houngbo, President of IFAD. 

“With this support, more small-scale producers, particularly women, will be able to increase food production, bring more nutritious and affordable food to markets and improve rural income opportunities.”

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“Canada is promoting innovative, gender-responsive financing, including through our efforts to advance women’s rights, leadership and decision-making in agriculture and food systems. We look forward to continuing our work with IFAD to achieve a low-carbon, food secure, and climate-resilient future for us all—especially for those working on the forefront: rural women,” said Minister Harjit S. Sajjan.

The Canadian contribution will be used by IFAD to help finance its programme of loans and grants which is expected to total up to US$3.5 billion over the next three years. This will help approximately 110 million rural people increase their production and raise their incomes through better market access and rural financial services. It will also increase climate resilience and contribute to creating employment, particularly for women and youth, while improving food security and nutrition for the world’s most vulnerable people.

Canada is a founding member of IFAD.

Over the years, it has committed more than US$551 million to the Fund’s core resources, with a particular focus on initiatives for women’s empowerment and gender equality, improved rural livelihoods, better nutrition and climate adaptation. With Canada’s strong support, IFAD has become a leader in rural women’s empowerment, with women now accounting for a full 50 percent of participants in IFAD-funded programs and projects.

IFAD is an international financial institution and specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. It is focused on transforming agriculture, rural economies and food systems by making them more inclusive, productive, resilient to climate shocks and sustainable.

Eight out of 10 of the world’s poorest people live in rural areas, and most depend on agriculture for their livelihoods.