The World Bank has committed $9 billion in agribusiness investments, calling for the creation of a comprehensive global ecosystem as food demand is set to increase by up to 60 per cent.
The call follows the Bank’s observation of four emerging shifts that could reshape the agribusiness landscape such as improving productivity, climate resilience, and providing job security for the world’s 1.2 billion young people in the next decade.
Mr Ajay Banga, President of World Bank Group, echoed the need for world leaders and development partners to ensure that the opportunities in the agribusiness sector were harnessed for the good of 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).
The four pivotal shifts – climate finance, private capital flow, advancements in digitalisation, and the linkage between smallholder farmers and large food companies and traders, he said, presented opportunities for reshaping 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 to create a comprehensive ecosystem for agribusiness,” he said.
Mr Banga noted that the Bank had for the past 16 months examined the challenges from every angle – how to increase food production, boost productivity, and resolve issues around 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.