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  04 Oct 2022, 12:59
Update : 04 Oct 2022, 13:28

IFC launches financial platform to respond to global food crisis, build resilience food systems

DHAKA, Oct 4, 2022 (BSS) - Responding to surging levels of food insecurity,
IFC has launched a new, $6 billion financing facility to strengthen the
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.

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, said a
press release.

The release said 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.

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 IFC Managing Director Makhtar Diop.

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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