Islamic Development Bank to mobilise $750m for food security

The Jeddah-based Islamic Development Bank (IsDB) will mobilise up to $750 million in co-financing to strengthen food security in its member countries.

The initiative comes as food-importing economies face pressure from supply disruptions, higher transport costs and climate-related threats to agricultural production.

The financing is intended to strengthen domestic farming, rural businesses and food supply chains, making them less vulnerable to future shocks.

The funds, raised in collaboration with the United Nations International Fund for Agricultural Development, will also support investments to improve rural economies and eradicate poverty in 57 countries, the development agencies said in a statement.

Alvaro Lario, president of IFAD, said the initiative would create ripple effects across the first mile of food systems by creating jobs, increasing incomes and building more resilient rural economies.

The plan focuses on expanding cooperation in key areas, including agribusiness value chains, market access, rural finance and financial inclusion, climate adaptation and water access.

The agencies will also support private-sector operations in agribusinesses and rural small- and medium-sized enterprises, the statement said.

To date, IsDB and IFAD have co-financed 29 projects worth $1.45 billion.

IsDB is a multilateral development finance institution established by the Organisation of Islamic Cooperation in 1973. Saudi Arabia is its largest shareholder.

Further reading:

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• Islamic Development Bank grants $500m for Bahrain and Jordan
• Egypt secures $1.6bn loan from Islamic Development Bank