IFAD’s Impact Report 2023: Transforming Lives with Sustainable Bonds
The International Fund for Agricultural Development (IFAD) is taking bold steps to uplift over 8.1 million people in the world’s most vulnerable farming communities. Through new agricultural projects fueled by an impressive $344 million raised via sustainability bonds, IFAD’s transformative efforts shine brightly in its Impact Report 2023, released today.
A Legacy of Change
Since its founding in 1977, IFAD has championed the fight against hunger and poverty by empowering small-scale farmers and revitalizing rural economies. By the end of 2023, its initiatives touched 95.6 million lives, a leap from 78.6 million in 2022. The recent bond funding promises to extend this reach, fostering resilience and growth in even more underserved rural communities.
Real Impacts on the Ground
The Impact Report highlights how proceeds from these bonds are driving tangible benefits:
- Boosting production: Enabling small-scale farmers to grow more and better crops.
- Improving access to markets: Creating opportunities for farmers to sell their produce and earn more.
- Enhancing nutrition: Encouraging diverse diets and better health.
- Job creation and infrastructure: Building and rehabilitating water systems and other critical facilities.
- Climate resilience: Equipping communities with sustainable farming practices to combat climate challenges.
Small-scale farmers, who produce one-third of the world’s food, are pivotal to global food security. Yet, they face mounting challenges, including climate change, poverty, and hunger. IFAD’s initiatives aim to bridge this gap and empower these unsung heroes.
Innovative Financing for a Better World
“By bringing together like-minded investors, including private impact investors, we can drive finance to make a real difference in the lives of millions and contribute to a world free from hunger and poverty,” said Alvaro Lario, IFAD’s President.
He emphasized that sustainable investments not only yield financial returns but also bolster food supplies, enhance climate resilience, and promote global stability.
Key Achievements at a Glance
- Sustainable Development Impact: IFAD’s bonds contributed directly to 10 SDGs and 16 SDG targets, with indirect contributions to 16 additional SDGs and 58 SDG targets.
- Investment Priorities: Nearly half of the funds ($154.8 million) focused on improving market access, followed by $98 million dedicated to environmental projects.
- Expanding Reach: Projects grew from two regions in 2022 to five in 2023, spanning Latin America, Africa, Asia, and more.
A Groundbreaking Approach
In 2022, IFAD became the first United Nations Fund to issue a sustainability bond, stepping into international capital markets to amplify its impact. By 2024, the organization expects to raise a total of $644 million through eight bond issuances. This financial innovation is a game-changer, enhancing IFAD’s lending capacity at a time when government budgets are strained.
Looking Ahead: A Call to Action
As IFAD prepares for its 13th replenishment, it is targeting a record $2 billion in new capital for 2025-2027, enabling a work program worth at least $10 billion. With hunger affecting 735 million people and extreme poverty gripping nearly 700 million, IFAD’s mission is more urgent than ever.
Through innovative financing and unwavering commitment, IFAD is lighting the path toward a future where every rural community thrives. Join this mission to transform lives and build a world free from hunger and poverty.
