The World Bank has pledged US$9 billion towards agribusiness investments, urging the establishment of a robust global ecosystem in light of anticipated food demand growth of up to 60 percent.
This appeal comes after the Bank identified four emerging trends that could transform the agribusiness sector: enhancing productivity, building climate resilience, and securing employment for the world’s 1.2 billion young people in the coming decade.
Ajay Banga, President of the World Bank Group, emphasized the importance of global leaders and development partners working together to ensure that the benefits of the agribusiness sector are accessible to all.
He spoke on “Agriculture and food as an engine for sustainable growth and jobs,” on Wednesday, October 23, at the 2024 International Monetary Fund (IMF)/WBG Annual Meetings in Washington, DC (USA).
He stated that the four crucial changes—climate finance, the flow of private capital, advancements in digital technology, and the connection between smallholder farmers and large food companies and traders—offer significant opportunities for transforming agribusiness.
“We are combining a new way of working with a new level of investment – doubling our agri-finance and agribusiness commitments to $9 billion annually by 2030,” Mr Banga said.
“Taking advantage of this opportunity will not happen without a new approach. For us, that change begins today with the goal to create a comprehensive ecosystem for agribusiness,” he said.
Mr. Banga highlighted that over the last 16 months, the Bank has thoroughly investigated the challenges related to increasing food production, enhancing productivity, and addressing concerns surrounding water scarcity, fertilizers, infrastructure, and financing.
“It moves us beyond fragmented efforts to a constellation of solutions that includes everything from warehousing to logistics to production, but with smallholder farmers and producer organizations at the centre,” he said.
He stated that with the Bank’s newly simplified Guarantee Platform, there would be a boost in agric and agribusiness transformation, making it easier to deliver tailored solutions to meet the diverse demands of various partners.
“The effort to transform agribusiness is not only about securing the food systems of tomorrow—it is fundamentally a jobs initiative… delivering quality of life and job opportunities,” Mr Banga said.
The provision of jobs, he said had become necessary as in the next 10 years, 1.2 billion young people in developing countries would enter the workforce, with only 420 million jobs projected to be available, leaving nearly 800 million without a clear path to employment.
“We stand at a crossroads, and the path we choose today will determine the future. By transforming agriculture and agribusiness, we can create the food system of tomorrow, raise living standards, and create jobs,” he stated.
“The increase in agricultural productivity—and incomes—will help create jobs, boost revenues, and improve the quality of food and nutrition. Climate-smart production practices will mean fewer emissions and cleaner air and water. Overall, a better quality of life,” the World Bank President said.