IsDB and IFAD Sign $500 million Agreement to Tackle Climate Change and Improve Food Security

Jeddah, Kingdom of Saudi Arabia 14 April 2021: The Islamic Development Bank (IsDB) and the International Fund for Agricultural Development (IFAD) have  signed a Cooperation and Co-financing Agreement (CCA) aimed at tackling climate change, improving food and water security and other strategic priorities in common Member Countries. As part of the agreement, each of the two institutions will contribute US$250 million over the next five years (2021-2025).

The agreement was signed virtually on Wednesday 14 April 2021 by IsDB President Dr. Bandar Hajjar and the President of IFAD Mr. Gilbert F. Houngbo.

Commenting on the signing of the agreement, IsDB President Dr. Bandar Hajjar stated: “The renewal of our partnership comes at a time when the world is facing unprecedented socio-economic challenges caused by the COVID-19 pandemic. Food and water security are strategic priorities for IsDB member countries, most of which are in arid and semi-arid areas. Demographic growth and climate change are increasing the pressure on these vital resources.”

“The partnership we are signing today, will allow us to co-create financing and investment programs that will address these challenges but also help our Member Countries tap into emerging global value chain opportunities to build resilience and create wealth in post COVID-19 world.” Dr. Hajjar added. 

The agreement signed by IsDB and IFAD would explore working in several areas such as agricultural and rural development, agribusiness, value chains development, improved access to markets and rural financial services, improved access to employment opportunities and South-South and triangular cooperation.

“IFAD and IsDB have a long history of collaboration,” said Houngbo. “Both institutions strive to improve the lives of the world’s most vulnerable people and contribute to ending poverty. Through this agreement we can strengthen our impact in areas of common interests, including improving access to markets and rural financial services, increasing climate resilience and using technology and innovation to maximize impact.”

Other areas of interest include water for rural development, building resilience to climate change and natural disasters to achieve the SDGs; Science, Technology, and Innovation as well as community-based approaches and policy dialogue.

IsDB and IFAD have long history of cooperation going back to 1979, four years after IsDB was established.