IFC launches financing platform to respond to global food crisis

NEW DELHI: In response to growing food insecurity, the private sector investment arm of the World Bank, the International Finance Corporation (IFC), has launched a new $6 billion financing facility to build the capacity of the private sector to respond to the crisis and support food production.

The war in Ukraine and an uneven global recovery from the COVID-19 pandemic have worsened levels of hunger and malnutrition, which have already been aggravated by climate change and increasingly severe weather events that damage crops and reduce yields, the statement said.

A key part of the funding, which will be provided through the new Global Food Security Platform (the Platform), will support the sustainable production and delivery of food stocks to countries affected by food instability.

“The support will aim to facilitate trade in food products, delivery of inputs to farmers, support efficient production in key origins, including Ukraine, and efficient distribution of food products in destination countries,” he said. he added.

Funding will also focus on long-term actions to improve the resilience of the global food system and reduce its climate and ecological footprint. This includes investing in increasing efficient agricultural production, improving access to fertilizers, greening fertilizer production and use, reducing crop losses and food waste, improving supply chain efficiency and alleviating infrastructure bottlenecks.

The $6 billion will be used to support private sector businesses along the food value chain by leveraging IFC’s sector expertise in agribusiness, manufacturing, infrastructure and technology, as well as finance and trade finance.

“The private sector has a vital role to play in reducing food insecurity and creating lasting solutions. By strengthening supply chains and ensuring people have access to affordable food and can grow it, this initiative will help build resilient food systems in the most vulnerable regions,” said Makhtar Diop, Chief Executive Officer. from IFC.

The platform will complement the World Bank’s US$30 billion commitment in response to the food crisis.

IFC is also scaling up its engagements with other partners, including development finance institutions, foundations, banks and a range of private companies, to mobilize collective action to address global food security challenges.

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