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IFAD President at G7: Bigger and smarter investments in small-scale agriculture are key to build a prosperous Africa
Rome, Italy, 25 September 2024 — “Our first line of action against climate change, hunger and poverty is prosperous rural communities. Investing in small-scale farmers and rural entrepreneurs is the most effective way to unlock the immense potential of Africa’s agriculture and food systems for all,” said Alvaro Lario, President of the UN’s International Fund for Agricultural Development (IFAD) heading to the G7 Agriculture Ministers meeting starting in Syracuse tomorrow.
The meeting will kick off with an unprecedented G7 Agriculture Forum for Africa – an innovation of the G7 Italian presidency – to continue to foster a dialogue between G7 and African nations on the opportunities and challenges in Africa’s agriculture sector.
“In Africa, food insecurity and climate change are damaging opportunities for the millions of young people entering the job market. Developing thriving rural economies that provide good food and decent jobs has a stabilizing power. Now is the time to invest at scale in Africa’s small-scale food producers – the backbone of Africa’s food security and development,” said Lario.
Small-scale farming supplies up to 70% of the food in Africa and provides livelihood opportunities to hundreds of millions of people, playing a pivotal role in the continent’s food security. Food and agriculture are also a vital part of African economies, a sector expected to be worth a trillion dollars by 2030. Estimates show that economic growth in agriculture is two to three times more effective at reducing poverty and food insecurity than growth generated in other sectors.
At the G7, President Lario will advocate for investment and policies that prioritize sustainable agriculture practices, support farmers to adapt to climate change and build resilience. Crop yields are expected to decrease by up to 25% by the end of the century due to the effects of climate change.
With millions of young people entering the job market every year in Africa, President Lario will also emphasize that digitization, “green skills” and technologies and access to finance can make rural areas more appealing to youth, and help them to create small businesses along food value chains.
President Lario will therefore call for more effective investments in innovations and digital technologies and connectivity as a game changer in efforts to transform rural areas. Connectivity enables farmers to better access crucial information on markets and weather, receive agriculture advice and pest or weather alerts, and access e-wallets and financial services.
With donor countries’ support to agricultural development stagnant at just 4-6% of total official development assistance over the last decade, and many African countries facing financial constraints, President Lario will highlight the need to innovate, and further develop and strengthen de-risking mechanisms to attract investments from the private sector, an approach that IFAD is pursuing.
IFAD has committed to investing in rural people in Africa to transform the agriculture sector and promote rural development. In its 2025-2027 project cycle up to 60% of IFAD’s core financing will be invested in the continent.
In Africa, 20% of the population – or one in five – is undernourished or suffers from hunger, affecting a total of approximately 300 million people.
Media contact:
Caroline Chaumont, IFAD Rome
Mobile: +39 3496620155
Email: c.chaumont@ifad.org
Link to the picture and description
No.: IFAD/81/2024
IFAD is an international financial institution and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than US$24 billion in grants and low-interest loans to fund projects in developing countries.
A wide range of photographs of IFAD’s work in rural communities are available for download from its Image Bank.