The International Fund for Agricultural Development (IFAD), a United Nations agency, plays a pivotal role in boosting food security and sustainable development in Africa through its agriculture programs. Over the last four decades, IFAD, with its robust investment portfolio strategy, had increased the financing of its sustainable agriculture programs in the region by 26% to US$1.95 billion at the end of 2022 from US$1.9 billion in 2021. Furthermore, through a Private-Public-Partnership with the World Bank, the African Development Bank (AfDB) and local governments, IFAD has contributed approximately US$3 billion to African agriculture development.
Why Sub-Saharan Africa?
This region of the world is the main focus of donor-funded agricultural programs due to a rapidly increasing population, higher poverty rates, strong climate-change impacts on farming, and, not least, due to the challenges faced by small-scale rural farmers, particularly the disruptions to agricultural input supplies due to the Ukraine war.
In this article, we focus on five IFAD programs: The Kenya Cereal Enhancement Programme – Climate-Resilient Agricultural Livelihoods Window (KCEP-CRAL), The Project for Restoration of Livelihoods in the Northern Region (PRELNOR), the Sustainable Agricultural Production Programme Phase II (SAPP II) in Malawi, the Agriculture and Fisheries Development Programme (AFDP) in Tanzania, and the Participatory Agriculture and Climate Transformation (PACT) program.
Goals of IFAD’s international sustainable agriculture initiatives
Established in 1978, IFAD is an international financial institution that was formed with the mandate of investing in rural people, funding them to reduce poverty, improve nutrition, increase food security, and strengthen resilience. IFAD had been financing small-scale farmers to integrate sustainable agricultural practices for at least a decade through its normal programming financing of US$1.2 billion for sustainability activities between 2019-2021 and managing Adaptation for Smaller Scale Farmer Program (ASAP) for small-scale farmers.
By issuing grants and loans to farmers, the institution supports sustainable agriculture and development by:
- Reducing rural poverty and food insecurity among smallholder farmers.
- Fostering agricultural practices that build climate resilience.
- Supporting climate-smart agriculture techniques such as conservation agriculture.
- Investing in digital innovations that allow small-scale farmers access to financial services and markets.
- Supporting farmers with resources and training to boost economic resilience
Strengthening community capacities.
IFAD’s sustainable agriculture programs in sub-Saharan Africa
Reducing rural poverty and food insecurity through the KCEP-CRAL program in Kenya
Kenya Cereal Enhancement Programme – Climate-Resilient Agricultural Livelihoods Window (KCEP-CRAL) is a seven-year Public-Private Partnership program launched in 2014. It aims to support Kenyan smallholders via an innovative e-voucher framework based on a chain operator network, provide training on financial literacy, and strengthen their capacity to develop community-resilient assessments. The aggregate cost of KCEP-CRAL is around US$153 million, with IFAD offering financing of US$64 million as well as a grant component of US$10 million from its ASAP fund.
Strengthening Community Sustainability Capacities via the PRELNOR Initiative in Uganda
The Project for Restoration of Livelihoods in the Northern Region (PRELNOR) is a 10-year program that was launched in 2014 in Uganda. The aggregate cost of the program is around US$71, with IFAD’s share reaching US$60 million, while co-financiers such as the Ugandan National Government contribute around US$11 million. Through the provision of concession loans to farmers, the program aims to increase sustainable production and the climate resilience of smallholder farmers and increase accessibility to local and export markets.
Supporting Economic Resilience through SAPP II in Malawi
Sustainable Agricultural Production Programme Phase II (SAPP II) is a seven-year program that was launched by IFAD in collaboration with the Malawian government in 2023. The US$53 million sustainable agricultural development program aims to equip farmers with the skills and resources needed to address food insecurity, increase income levels, and improve the livelihoods of rural communities of Malawi.
Promoting Food Security and Nutrition through the AFDP Program in Tanzania
Agriculture and Fisheries Development Programme (AFDP) is a seven-year program launched in 2020 at an aggregate cost of US$79 million. IFAD provides funding amounting to US$59 million while co-financiers, particularly the Norwegian Agency for Development Cooperation, contribute nearly US$ 1 million, and the Tanzania government US$8 million. The program aims to promote sustainable productivity, profitability, and the commercialization of selected fisheries and aquaculture.
Reducing Poverty and Improving Resilience through PACT program in Ethiopia
Participatory Agriculture and Climate Transformation Programme (PACT) is a seven-year program that was launched in 2022 in Ethiopia, targeting at least 150,000 households. The program is a Private-Public-Partnership initiative with IFAD’s contribution reaching US$78 million, international co-financiers such as the European Union US$18 million, and the Ethiopian government contributing US$24 million. The programs aim to help rural farmers to improve incomes and food security and build resilience to climate shocks.
Final word
The International Fund for Agricultural Development (IFAD) financing of sustainable agriculture initiatives through the Public-Private Partnership strategy in sub-Saharan Africa promotes food security and sustainable development in a region that is severely affected by climate change and conflicts. The IFAD’s loans and grants to rural farmers aim to support climate-smart agricultural techniques, strengthen farmers with resources and training, improve community capacities for generating income, and adopt agricultural practices that create climate resilience.
