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IFC launches financing platform to respond to global food crisis

The war in Ukraine and an uneven global recovery from the COVID-19 pandemic have added to rising levels of hunger and malnourishment, (File Photo: AFP)Premium
The war in Ukraine and an uneven global recovery from the COVID-19 pandemic have added to rising levels of hunger and malnourishment, (File Photo: AFP)

Financing will also focus on long-term actions to improve the resilience of the global food system and lessen its climate and ecological footprint. This includes investing in increasing efficient crop production, improving access to fertilizers, greening fertilizer production and use, among others

NEW DELHI: Responding to rising food insecurity, World Bank’s private sector investment arm, the International Finance Corp. (IFC) has launched a new, $6 billion financing facility to strengthen private sector’s ability to respond to the crisis and help support food production.

The war in Ukraine and an uneven global recovery from the COVID-19 pandemic have added to rising levels of hunger and malnourishment, which already have been worsened by climate change and increasingly severe weather events that are damaging harvests and reducing yields, the statement reads.

A core part of the financing, which will be provided through the new Global Food Security Platform (the Platform), will support sustainable production and delivery of food stocks to countries affected by food instability.

“Support will be aimed at facilitating trade of food commodities, delivery of inputs to farmers, supporting efficient production in major origins, including Ukraine, and effective distribution of food products in destination countries," it added.

Financing will also focus on long-term actions to improve the resilience of the global food system and lessen its climate and ecological footprint. This includes investing in increasing efficient crop production, improving access to fertilizers, greening fertilizer production and use, reducing crop loss and food waste, improving supply chain efficiency, and mitigating infrastructure bottlenecks.

The $6 billion will be used to support private sector companies along the food value chain by leveraging IFC’s sectoral expertise in agribusiness, manufacturing, infrastructure, and technology, as well as the financial sector and trade finance.

“The private sector has an essential role to play in alleviating food insecurity and in creating lasting solutions. By strengthening supply chains and ensuring that people have access to and can grow affordable food, this initiative will contribute to building resilient food systems in the most vulnerable regions," said Makhtar Diop, Managing Director, IFC.

The platform will supplement the World Bank’s commitment of US$30 billion in response to the food crisis.

IFC is also stepping up engagements with other partners, including development finance institutions, foundations, banks as well as a range of private companies, in order to mobilize collective action to address global food security challenges.

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