The World Bank Group has unveiled a new, integrated approach to agribusiness, committing to doubling its annual agri-finance and agribusiness investments to USD 9 billion by 2030. This strategic shift aims to establish a comprehensive ecosystem for the industry, aligning with global challenges such as climate change, digitalization, and market fragmentation.
As global food demand is expected to increase by 60% in the coming decades, the World Bank’s approach is designed to support the growing need for food production while addressing critical issues in emerging markets, including job creation. World Bank Group President Ajay Banga highlighted the importance of the new strategy, noting that the approach will shape the future by moving beyond fragmented efforts. He emphasized that smallholder farmers and producer organizations are central to the comprehensive ecosystem of solutions the Bank is creating.
This ecosystem-driven model is the result of over 16 months of internal reform aimed at simplifying and streamlining the World Bank’s efforts, allowing for more coordinated and impactful support across the public and private sectors. By leveraging the resources of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) for public sector capacity-building, alongside the financing and risk mitigation capabilities of the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), the Bank aims to foster stronger collaborations and mobilize up to USD 5 billion in additional resources by 2030.
Three core aspects define this new approach:
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Supporting Regulatory and Infrastructure Development: The World Bank’s public sector arms will help countries create regulatory frameworks, ensuring that agricultural products meet international export standards. They will also help address land tenure issues and develop vital infrastructure like national irrigation systems, while climate finance efforts will repurpose fossil fuel and agricultural subsidies toward greener practices.
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Unlocking Private Sector Investment: Through debt and equity funding, as well as risk mitigation via guarantees, the World Bank Group’s private sector entities will make it easier for businesses and governments to access the necessary resources to grow. The recently launched World Bank Group Guarantee Platform will further streamline access to tailored solutions that address diverse needs.
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Connecting Smallholder Farmers to Global Supply Chains: The new ecosystem model will focus on empowering smallholder farmers by improving productivity and climate resilience. The IBRD will work with smallholder cooperatives to ensure they meet the requirements of larger companies, while IFC will step in with financing for equipment and facilitate connections with international buyers.
The World Bank Group’s ambitious shift aims to not only boost agricultural productivity and farmer incomes but also create more jobs, enhance food quality, and contribute to environmental sustainability through climate-smart practices. These efforts are set to improve air and water quality while promoting better living standards globally.
