The World Bank Group has announced plans to enhance its financial commitment to agribusiness with a goal to double its annual funding to $9 billion by 2030. This initiative aims to develop a comprehensive ecosystem for the agribusiness sector, tackling key challenges and seizing opportunities within the industry.
Mr. Ajay Banga, President of the World Bank, made this announcement at the Agriculture Flagship Event during the ongoing IMF/World Bank Annual Meetings in Washington, DC. He stressed the importance of decisive actions from both governments and private sector investors to tackle persistent challenges in food production. The funding boost responds to transformative trends affecting agribusiness, such as climate change, advancements in financial technology, and the demand for digital solutions.
According to the World Bank Group President Ajay Banga: “We stand at a crossroads, and the path we choose today will determine the future. The World Bank’s ecosystem approach moves us beyond fragmented efforts to a constellation of solutions that includes everything from warehousing to logistics to production, but with smallholder farmers and producer organizations at the Centre.”
The fund stated that the ecosystem was made possible because of the work it had advanced over the past 16 months to become a better, simpler, more coordinated institution. It further stated that the more integrated approach will bring together all the institution’s resources to offer comprehensive support and tailored solutions
Mr Banga added that the World Bank’s International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) will concentrate on enhancing public sector capacity, while the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) will focus on providing financing and facilitating access to the private sector.
It added that this collaborative approach will be recognized and experienced by both business and government partners, with the aim of mobilizing $5 billion by 2030. The bank also noted that increasing agricultural productivity—and incomes—will help generate jobs, enhance revenues, and improve food quality and nutrition. It further explained that Climate-smart production practices will lead to lower emissions and cleaner air and water, resulting in an overall better quality of life.
As part of its ongoing support for Nigeria, the World Bank has launched initiatives like the Agro-Climatic Resilience in Semi-Arid Landscapes project, which has already made progress in boosting agricultural productivity in the Federal Capital Territory. This project includes the procurement of tractors and the construction of solar-powered boreholes to enhance irrigation capabilities and provide sustainable water sources for local communities.
It further disclosed that the increase in agricultural inputs will also help create jobs, boost revenue and improve crop yields. It will also address the challenges posed by climate change, promote food security and economic development in the region.
