Norway and IFAD Continue Their Cooperation for Food Security and Sustainable Growth

Minister of International Development Åsmund Aukrust met IFAD President Alvaro Lario in Oslo on 19 March. The meeting focused on how to strengthen investments in fisheries and agriculture in vulnerable rural areas severely affected by the current international crisis.

Approximately three-quarters of the world's poorest people live in rural areas in developing countries, nearly 70% of them in extreme poverty in sub-Saharan Africa. They are the hardest hit by climate change and rising prices, and many are forced to migrate.

Experience shows that investments in small-scale producers can be up to three times more effective in reducing poverty than equivalent efforts in other sectors. IFAD is the world's second-largest provider of development assistance for agriculture and mobilises six times more capital based on Norway's and other donors' contributions to generate economic growth and resilient communities in the poorest countries.

"If we are to succeed in the fight against hunger and poverty, we must support the men and women working in fisheries and agriculture, who feel the effects of climate change most directly. When farmers and fishers are given the opportunity to succeed, the whole community benefits," the Minister said.

Norway and IFAD have agreed to:

• Strengthen the framework conditions for responsibleprivate-sector investment.
  The parties will work to improve policy, institutional and market conditions that make it more profitable for the private sector to invest in food value chains. This includes measures to reduce risk for small and medium-sized enterprises investing in agriculture, for example through the Financing for Agricultural Small and Medium Sized Enterprises in Africa (FASA) initiative, which uses joint assessments of potential investment projects and knowledge exchange to strengthen both sustainability and impact, particularly in Africa.
• Mobilisefinancing for rural transformation
  Norway and IFAD will explore opportunities to develop and use innovative financial instruments that can drive and attract more private capital. The aim is to promote risk-sharing, public-private partnerships and profitable projects that can enhance investments in rural areas.
• Joint advocacy and global engagement
  The parties will cooperate to raise awareness of the challenges and opportunities within global food systems, including through joint events and initiatives that highlight sustainable agriculture and progress in rural development projects.