The Islamic Development Bank and the International Fund for Agricultural Development have signed a new Cooperation and Co-financing Agreement aimed at mobilizing up to $750 million for sustainable agricultural development, food systems, and rural transformation.
The expanded partnership will combine the institutions’ financing capabilities, development expertise, and international reach to support investments designed to strengthen food security, reduce poverty, and create economic opportunities in rural communities across their common member countries.
IsDB and IFAD are developing a joint action plan that will translate the agreement into individual investments. Priority areas include agribusiness value chains, market access, rural finance and financial inclusion, climate adaptation, sustainable natural resource management, and water access.
The agreement is also expected to expand opportunities for private-sector investment supporting agribusinesses and rural small and medium-sized enterprises. The organizations plan to combine different forms of development and commercial financing to support projects across the food and agricultural economy.
The wider IsDB Group will participate through affiliates 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. The approach is intended to combine development finance, trade finance, investment, and risk mitigation capabilities.
The new agreement expands a relationship between IsDB and IFAD that dates back to 1980. Since then, the organizations have jointly financed 29 projects with a combined value of approximately $1.45 billion.
The additional $750 million mobilization target represents a significant expansion of that collaboration and is intended to increase the scale of investments addressing agricultural productivity, rural livelihoods, market connectivity, and resilience.
KEY QUOTES:
“This renewed partnership between IsDB and IFAD builds on nearly five decades of successful cooperation. 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.”
Dr. Muhammad Al Jasser, Chairman Of The IsDB Group
“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.”
Alvaro Lario, President Of IFAD
