The Inter-American Development Bank (IDB) and the International Fund for Agricultural Development (IFAD) have signed a co-financing framework agreement to scale up joint investment in rural development, sustainable food systems and climate resilience across Latin America and the Caribbean.

The agreement, signed in New York on 24 September on the margins of the 81st UN General Assembly, targets the "first mile" of food systems, where most food is produced, with the aim of creating rural jobs and helping smallholder farmers and rural communities adapt to climate and economic shocks.

"This agreement sends a clear signal of our collective determination to scale up impact across Latin America and the Caribbean," IFAD President Alvaro Lario said. IFAD said the region faces constrained public resources and a looming, very strong El Niño.

The framework moves the partners from project-by-project collaboration to a more systematic approach to identifying and financing joint investments, combining IFAD's technical expertise with smallholders and the IDB's financial scale. They plan to expand joint operations to improve productive capacity and market access, including through AgriConnect, the World Bank Group initiative for 300 million smallholders in which both take part.

The partnership dates to 1978 and was reinforced by a memorandum of understanding in May 2024. The two institutions are co-financing three investments in Brazil worth a combined US$402.5 million, including US$270 million from the IDB.

Source: IFAD