Rome, 3 December 2010 – The International Fund for Agricultural Development (IFAD) and the OPEC Fund for International Development (OFID), today announced an enhanced partnership which will promote innovative financing mechanisms to attract private sector investment in agriculture, as well as develop inclusive business models that bring benefits for investors and local small farmers. The two institutions called for an increased investment in agriculture to guarantee food security.

The announcement followed the signature of a framework agreement between the two institutions, by Suleiman J. Al-Herbish, Director-General of OFID, and Kanayo F. Nwanze, President of IFAD. The agreement aims at enhancing the scope of existing cooperation and includes a common pipeline of projects for a three-year rolling programme, for the period 2011-2013.

“Today, our partnership is more important and vital than ever, as we jointly seek to improve global food security,” said the IFAD President.

“We must ramp up investment in agriculture at every level starting from the smallholders. IFAD and OFID have established a strong track record of cooperation. The agreement will benefit a large number of smallholder farmers, enabling them to improve their livelihoods, which is a fundamental priority for both institutions,” concluded Nwanze.

The new agreement builds on existing policies already adopted by the two institutions. Its overarching goal is to assist developing countries to address poverty alleviation and increase the level of food security. The agreement places more emphasis on an integrated approach to on-farm and off-farm investments, supply chains, and the development of entrepreneurships. Rural infrastructure and services, such as those advocated by the Energy for the Poor Initiative, in the global efforts to alleviate energy poverty, is also a key concern.

The Director-General of OFID, said that the signature of this agreement “gives us not just directions for our future operations but actually sets us off on a stronger path of cooperation”. Al-Herbish also spoke of OFID’s active support for an Energy for the Poor Initiative to achieve sustainable development, especially in the rural areas where poverty is more prevalent: “For us available and affordable energy is such a potent lever of economic and social development that we have made alleviating energy poverty a cornerstone of our lending programs”.

OFID cooperation with IFAD is a cornerstone of OPEC Member countries commitment to eradicating poverty and boosting agricultural productivity in developing countries. Rural development, as an essential means for the economic growth and social welfare of developing countries, has been on top of the agenda of OPEC Member countries. To date, both institutions have jointly implemented a total of 81 projects in 44 countries.

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Press release No.: IFAD/78/2010

About IFAD

The International Fund for Agricultural Development (IFAD) works with poor rural people to enable them to grow and sell more food, increase their incomes and determine the direction of their own lives. Since 1978, IFAD has invested over US$12 billion in grants and low-interest loans to developing countries, empowering more than 360 million people to break out of poverty. IFAD is an international financial institution and a specialized UN agency based in Rome – the UN’s food and agricultural hub. It is a unique partnership of 165 members from the Organization of the Petroleum Exporting Countries (OPEC), other developing countries and the Organisation for Economic Co-operation and Development (OECD).

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About OFID
The OPEC Fund for International Development (OFID) is a development finance institution which was established in 1976 by the Member States of the Organization of the Petroleum Exporting Countries (OPEC). The primary aim of OFID is to contribute to the social and economic advancement of developing countries.  All developing countries, with the exception of OPEC Member Countries, are in principle eligible for OFID assistance. Today, 129 countries spread across Africa, Asia, Latin America, the Caribbean, the Middle East and Europe have benefited from OFID's assistance.
For further information please visit: www.ofid.org

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Notes to Editors

A joint communiqué was issued by IFAD and OFID calling for more investments in agriculture and rural development, and outlining the areas of interest to both parties and the best way forward in accomplishing them.

OFID has been a long-standing supporter of IFAD and a key partner since 1979. IFAD and OFID have crafted a unique partnership that transcends mere financial cooperation. The partnership is rooted in a common goal: enabling poor people, especially in rural areas, to secure a better life.

With nearly US$484.2 million in co-financing, OFID is the third largest co-financier of IFAD-sponsored programmes and projects in all developing regions of the world. IFAD shares with OFID, and OPEC member states a determination to achieve the Millennium Development Goals - particularly the first goal of halving the proportion of people living in extreme poverty and hunger.