In response to growing food insecurity, the International Finance Corporation (IFC) has launched a new $6 billion financing facility to bolster the private sector’s capacity to respond to crises and support food production. The war in Ukraine and uneven global recovery from the Covid-19 pandemic have contributed to rising hunger and malnutrition, already exacerbated by climate change and increasingly extreme weather events, damaging crops and reducing yields.
That is stated in a press release from IFC today.
A significant portion of the funding, which will be provided through the new Global Food Security Platform, will support sustainable production and food supply in countries facing food insecurity.
Support will focus on facilitating trade in food products, providing input to farmers, supporting efficient production at key sources, including Ukraine, and effective distribution of food products to destination countries, the press release said.
Emphasis will be placed on financing long-term activities to improve the resilience of the global food system and its climate and environmental footprint. These include increasing crop production efficiency, facilitating access to fertilizers, reducing risks in fertilizer production and use, reducing crop losses and food waste, improving supply chain efficiency and reducing bottlenecks in the infrastructure.
The $6 billion will be used to support private sector companies in the food value chain, leveraging IFC’s sector expertise in agribusiness, manufacturing, infrastructure and technology, as well as the financial sector and trade finance.
“The private sector has a vital role to play in eradicating food insecurity and creating sustainable solutions. This initiative will help build resilient food systems in the most vulnerable regions by strengthening supply chains and ensuring people have access to affordable food.” IFC director Makhtar Diop said.
This platform complements the World Bank’s $30 billion pledge to tackle the food crisis.
IFC works with development finance institutions, foundations, banks, private companies and other partners to take collective action to address global food security challenges.