Rome, Italy:  12 February 2025 – Islamic Development Bank (IsDB) President, H.E. Dr. Muhammad Al Jasser, told world leaders attending the 48th session of the Governing Council of the International Fund for Agricultural Development (IFAD) in the Italian city of Rome that investing in agriculture is critical to addressing poverty, food security, and economic growth in the world, especially in developing countries.

Responding to questions during a high-level Leaders’ Dialogue amongst development finance leaders  exploring inclusive and catalytic approaches to financing the SDGs, including through rural transformation and strong partnerships to deliver results, President Al Jasser highlighted the IsDB’s strategy for agriculture and rural development, stating that the Bank is uniquely positioned as the only MDB from the South, by the South, and for the South, with solidarity at its core, and with realigned strategic pillars focused on building Green, Resilient, and Sustainable Infrastructure, as well as  Inclusive Human Capital Development.

He said investing in agriculture is critical to addressing poverty, food security, and economic growth, and that explains why agriculture is vital to IsDB member countries, contributing nearly US$ 823 billion (9.3% of GDP) in 2023, surpassing the global average of 4.1%. Additionally, IsDB member countries account for 28.8% of global agricultural land and are major commodity producers. 

Dr. Al Jasser stressed the significance of repositioning agriculture as a viable business, as it could unlock greater financing for rural transformation. He emphasized that shifting the perception of agriculture from a subsistence activity to a profitable business venture is key, as it has the potential to drive rural economic transformation if harnessed efficiently, sustainably, and inclusively.

Dr. Al Jasser highlighted the major challenges in agricultural development, including enabling small-holder farmers to scale up, land ownership and tenure security, limited access to financial services, technology and innovation gaps, weak institutional capacity, and infrastructure deficiencies. These challenges, he noted, are significant hurdles that need to be addressed for successful agricultural development.

The IsDB Chief proposed that the Fourth International Conference on Financing For Development could implement two key changes to facilitate greater investments in agri-food systems. He stressed the need to integrate agri-food and climate considerations into the development narrative, which would establish a long-term agri-food finance framework to mobilize and scale up climate finance from diverse sources.  He also underscored the importance of enhancing the use of innovative financing mechanisms to expand blended finance by combining public, private, and philanthropic investments.