Our flagship advisory services program is the Food Systems Development Program funded by the government of Germany under the One World without Hunger Initiative.
The €21 million program focuses on providing food producers, from smallholder farmers to small and medium-sized agribusinesses in Africa, with greater opportunities to improve their incomes. IFC's technical assistance will strengthen agricultural value chains from farm to market.
Agriculture is a key source of employment and livelihoods for many people in developing and emerging economies, particularly in rural areas. On average, agriculture contributes about a third of GDP in emerging markets, with agriculturally based industries contributing even more. However, access to agricultural finance is often a hurdle, with demand far exceeding supply. Lack of access to finance stops many farmers from adopting new technologies and enhancing their efficiency.
As the global population is projected to grow in coming decades, demand for food is expected to increase by 60 percent by 2050. With the agricultural system already under pressure to satisfy current demand, there is a need for a shift from informal subsistence agriculture to sustainable commercial agriculture to boost food production.
To achieve this, private sector businesses and the financial sector need to invest in sustainable technologies, scalable business models and climate-smart agriculture. Such initiatives will enable farmers to produce more food while decreasing the impact on the environment.
IFC's work in agri-finance involves providing investment and advisory services. These are designed to help increase the availability of agricultural finance in emerging and developing markets by promoting appropriate risk-mitigation products and skills development.
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