IFAD and AFD strengthen partnership with €200 million loan to invest in rural development
Rome - The heads of the International Fund for Agricultural Development (IFAD) and AFD today signed an agreement to work together to develop rural areas, which includes the provision of a €200 million loan to IFAD.
This loan gives the opportunity to increase investment in rural areas of developing countries and help achieve the Sustainable Development Goals of ending hunger and poverty by 2030.
"This is an important agreement between IFAD and AFD,” said Kanayo F. Nwanze, President of IFAD. “At a time when governments face constraints on development funding, and with the demand for IFAD’s services higher than ever, this loan gives us the opportunity to increase investment in rural areas of developing countries and help achieve the Sustainable Development Goals of ending hunger and poverty by 2030.”
“Through AFD, France wanted be the first member of state to support, under IFAD's sovereign borrowing framework, its 2016-2018 programme. This sovereign loan of 200 million euros marks, I am convinced, a new step in the partnership relations between our institutions. We both share a common dedication to achieving the Sustainable Development Goals. Joining our forces for agricultural, rural and local development is a key step in this direction”, said AFD’s Director General Rémy Rioux.
AFD, a public financial institution that implements policy defined by the French government, seeks to combat poverty and promote sustainable development. IFAD is an international financial institution and specialized United Nations agency focused on eradicating rural poverty. Both organizations share a similar approach to agricultural and rural development and prioritize investments in small-scale farming and share the goals of achieving food security and sustainable rural development.
The two organizations have already collaborated on a number of initiatives including the development of weather insurance products and support to farmers’ organisations in Africa. Through the Memorandum of Understanding and the loan agreement signed today, the two organizations commit to working closely together in the future, with a focus on increasing investments in rural finance, adaptation to climate change, gender equality and stemming migration.
IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided US$18.4 billion in grants and low-interest loans to projects that have reached about 464 million people. IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN’s food and agriculture hub. www.ifad.org