Source: European Investment Bank
The problem is that countries with the highest levels of food insecurity often have the hardest time accessing financing. Among the biggest obstacles are high transaction costs, fragmented agriculture markets, insecure land rights, poor administrative capacity, weak governance, and political instability.
One of the keys to overcoming these hurdles is to pursue stronger international partnerships. That is why the EIB, the Food and Agriculture Organization of the United Nations, and other international organizations are working together closely to promote food security, environmental sustainability, and climate resilience. By pooling resources and experience, especially in Sub-Saharan Africa, we can overcome the chronic financing challenges.
For example, by drawing on the expertise and convening power of FAO, we can provide more funding for agrifood and bioeconomy activities. In 2023 alone, the FAO Investment Centre helped mobilize $6.6 billion in new investment by designing 38 public investment projects backed by financing partners in 26 countries. And this came on top of implementation support to ongoing projects, representing a total of around $46.7 billion.
But scaling up such financing requires the right kind of tools, not least financial products that reduce risk for the private sector. For example, blended finance – which combines public and private funds – and innovative financing mechanisms like climate bonds can make these investments more attractive to capital that is still sitting on the sidelines.
Feeding the world is not just a moral responsibility; it is a strategic imperative. Hunger is an immediate global crisis that demands massive investments. Fortunately, the potential rewards are well worth it. Sustainable agrifood systems do far more than simply reduce poverty and hunger. They also create jobs, promote economic growth, reduce gender inequality, improve health, and build stronger communities. The return is enormous, and the cost of doing nothing is even greater.
This article was originally published by Project Syndicate.