Unpacking IFAD’s strategy on food security in developing nations

Small-scale farmers, who are responsible for producing one third of the world’s food and up to 70% of the food consumed in Africa and Asia, are facing the harsh realities of climate change and hunger. With about 80% of the world’s poorest living in rural areas, the impact of climate-induced events like droughts, floods, rising temperatures, and erratic rain patterns is profound. CNBC Africa recently spoke with Gerardine Mukeshimana, Vice President of the International Fund for Agricultural Development (IFAD), to delve deeper into the challenges faced by small-scale farmers and the strategies in place to address the pressing issue of food security. Mukeshimana highlighted the alarming increase in global hunger numbers, with close to 800 million people, including 300 million in Africa, going to bed hungry in 2022. These numbers paint a grim picture as the world races against time to achieve zero hunger by 2030. Mukeshimana expressed concerns that current trends suggest close to 600 million people may still be undernourished by 2030, indicating a significant gap between targets and reality. The impact of climate change on rural farmers further complicates the journey towards zero hunger, with Mukeshimana emphasizing the importance of scaling up efforts to avoid this scenario. She pointed out the meager allocation of climate finance to small-scale farming communities, with only 0.8% of mobilized funds directed towards this vulnerable group. This lack of investment poses a significant challenge in building resilience and ensuring food security for rural farmers. IFAD, however, is actively working to bridge this gap by supporting rural communities and small-scale farmers to enhance agricultural productivity and market access. Despite these efforts, Mukeshimana stressed the need for increased investments in rural areas to achieve food system transformation in Africa. The organization estimates a requirement of $5 billion annually in Africa alone to address food security challenges and contribute to global food production. Yet, the current levels of investment fall short, with a notable gap of $7 billion per year needed for Africa to meet its food security needs. Climate change and biodiversity loss are exacerbating challenges in African nations and globally, prompting IFAD to intensify its actions and resource allocation for developing countries in Africa. The organization allocates 65% of its resources to combat food insecurity and enhance small-scale farmers' resilience to climate change. Through initiatives focused on climate adaptation, agricultural productivity, and market linkages, IFAD aims to uplift rural communities and improve food security outcomes. In the current cycle, IFAD channeled 55% of its resources to address these pressing issues, with plans to further increase this allocation to 65% in the next cycle starting next year. This commitment translates to a significant boost in resources, with an expected allocation of close to $2 billion to tackle climate change and biodiversity loss in rural communities. Globally, IFAD is set to expand its portfolio to $10 billion next year, up from $8.5 billion, to fund various projects aimed at enhancing food security and agricultural development worldwide.