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The World Bank Group has announced an increase in its financial commitment to agribusiness, pledging to double its funding to $9bn annually by 2030.
According to the Bretton Woods institution in a statement on Wednesday, the initiative aims to create a comprehensive ecosystem for the agribusiness sector, addressing critical challenges and opportunities in the industry.
This significant funding increase comes in response to transformative trends reshaping agribusiness, including climate change, advancements in financial technology, and the need for digital solutions.
“We stand at a crossroads, and the path we choose today will determine the future,” said World Bank Group President Ajay Banga.
“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 multilateral lender noted 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.
“The more integrated approach will bring together all the institution’s resources to offer comprehensive support and tailored solutions,” it stated.
The World Bank said it was developing a continuum with IBRD and IDA’s experience building capacity and services of the public sector; and IFC and MIGA financing and private sector access.
“Ultimately, this contiguous way of working will be seen and felt by business and government partners alike, with a goal to increase mobilisation to $5bn in 2030,” it added.
According to the bank, the increase in agricultural productivity—and incomes—will help create jobs, boost revenues, and improve the quality of food and nutrition.
“Climate-smart production practices will mean fewer emissions and cleaner air and water. Overall, a better quality of life,” it expounded.
As part of its ongoing support for Nigeria, the World Bank has initiated projects, such as the Agro-Climatic Resilience in Semi-Arid Landscapes project, which has already made strides in boosting agricultural productivity in the Federal Capital Territory.
The project includes the procurement of tractors and the construction of solar-powered boreholes, aimed at enhancing irrigation capabilities and providing sustainable water sources for local communities.
The World Bank’s efforts are focused on improving agricultural inputs, such as providing farmers with access to improved seedlings, fertilizers, and pesticides.
According to the bank, those initiatives were designed to enhance crop yields and combat the adverse effects of climate change, ensuring food security and fostering economic development in the region.
