Report 2023
Viet Nam
The Ben Tre Coconut Investment Joint Stock Company received a loan that enabled it to expand its operations and create income-generating opportunities for local coconut producers.
Nigeria
The use of improved cassava varieties has led to better harvests and higher earnings, which can be invested in expanding production to create a more secure future for the community.
Argentina
Rural producers construct a well that will ensure better access to water for goats in Patagonia.
Jordan
Muneira Ali Awad, here with one of her goats bought with a loan, aims at being self‑sufficient and grows food for herself and her three children in her greenhouse.
Rural people hold the key to overcoming the compounding crises of climate change, instability and growing inequality. Providing a model for sustainable stewardship of the land, they produce nutritious food for a growing population and manage crucial natural resources.
The year 2023 was the hottest on record. The latest estimates indicate that up to 783 million people still suffer from hunger. And rural people are more likely to be affected by food insecurity than people living in peri-urban and urban areas.
IFAD was founded in the 1970s when food shortages and an energy crisis loomed large. Today, the world needs to come together again with a united, impactful response. I am pleased to say this is already happening.
During 2023, IFAD Member States stepped up with record pledges for the 13th Replenishment of IFAD’s Resources (IFAD13), paving the way for IFAD13 to be our largest replenishment ever.
We also issued two euro-denominated sustainable bond private placements – worth EUR 180 million – under our Sustainable Development Finance Framework.
At COP28, we introduced, with our partners, the Africa Rural Climate Adaptation Finance Mechanism, an innovative financing model that will support small-scale food producers and rural microenterprises adapt to climate change in several African countries.
In November, we issued our first impact report at the London Stock Exchange, showing how the proceeds of bonds IFAD issued in 2022 are being invested in two million rural households and directly contributing to eight Sustainable Development Goals.
Throughout the year, our Enhanced Adaptation for Smallholder Agriculture Programme (ASAP+) continued to catalyse climate finance for the countries that need it most. This included pioneering market-based mechanisms to fairly compensate small-scale farmers for ecosystem services; the establishment of an Innovation Lab; and a new instrument to provide funding directly to rural people’s organizations for climate-focused projects.
The year 2023 also reinforced our conviction that while our strength lies in our ability to galvanize investment where it is needed most, it is the role of our people – their dedication, their energy and their expertise – that enables us to do so.
During the year, we strove to ensure our staff have the support, the tools and the working environment they need to thrive. We continued efforts to bring our staff closer to the rural people we serve and reached our target of 40 per cent of staff in field duty stations. We also brought the share of women in senior positions above 45 per cent.
So, while the challenges we face are significant, we enter 2024 better equipped than ever before to respond to them and to continue our mission to help rural people find sustainable solutions.
We are grateful for the continued support of our partners – including Member States, other development organizations, private sector partners, and – most importantly – rural people and their organizations the world over.
Together, we can achieve our ultimate ambition of a world without hunger and poverty.
Alvaro Lario
PRESIDENT OF IFAD
America
and the
Caribbean
programmes
in 16 countries
millionongoing
IFAD financing
the Pacific
programmes
in 18 countries
millionongoing
IFAD financing
and Southern
Africa
programmes
in 17 countries
millionongoing
IFAD financing
North Africa
and Europe
programmes
in 15 countries
and Gaza and
the West Bank
millionongoing
IFAD financing
Central
Africa
programmes
in 22 countries
millionongoing
IFAD financing
million
in the region’s
ongoing portfolio
million
approved in 2023
programmes
and projects
18 countries in the region
at the end of 2023
programmes
and projects
Bangladesh (2 projects),
Indonesia and Solomon Islands
strategic opportunities
programme
Highlighted project
Bangladesh
The Promoting Agricultural Commercialization and Enterprises Project (PACE) restored activities in the pandemic-hit rural enterprise sector. In addition to financing, the project provided technical, technological and marketing support to rural microenterprises. It also provided market infrastructure, e-commerce services and support for decent rural employment.
Over 1 million people have been reached
More than half of those benefiting from the project (59 per cent) were women
Support has been offered to more than 225,000 rural entrepreneurs and other people involved in rural business activities
More than 400,000 people have been provided with access to financial services
“The water canal system was actually a dream of our ancestors,” said Muhammed Abbas, a small-scale farmer in Pakistan. “The prosperity we are seeing in our village now is indescribable.”
million
in the region’s
ongoing portfolio
million
approved in 2023
programmes
and projects
programmes
and projects
strategic opportunities
programme
Highlighted project
Rwanda
The Rwanda Dairy Development Project has invested in milk collection and processing infrastructure, in addition to climate-proofing existing infrastructure. It has increased the number of rainwater harvesting facilities and provided training in production and marketing techniques through livestock farmer field schools.
More than 150,000 rural households have benefited (more than double the initial target)
Participants’ income has increased by an average of 19 per cent
74 per cent of participating women have reached minimum dietary diversity
58 milk collection centres have been rehabilitated and 50 milk collection points have been constructed
“Even if we get a poor harvest in the field, we can sell the rabbits and we can have a meal at home,” explained Violet Banda, a rabbit farmer who participated in Rural Poor Stimulus Facility activities in Zambia.
million
in the region’s
ongoing portfolio
million
approved in 2023
programmes
and projects
programme
strategic opportunities
programme
Highlighted project
Bolivia, Guatemala,
Haiti, Honduras
and Peru
The AGRIdigitalización project was implemented in Peru and several other countries in Latin America and the Caribbean by Agriterra as part of IFAD’s Rural Poor Stimulus Facility programme. The initiative has helped small-scale farmers and their producer organizations find innovative ways to preserve their livelihoods and recover from the COVID-19 pandemic. The project connects farmers to online services, many of which are offered by small youth-led tech companies, as a means of reaching new markets and accessing technical assistance and financial services.
3,000 farmers will receive virtual technical assistance and training in internal remote communication systems
More than 10,000 family farmers are expected to benefit from the project
86 producer organizations have been supported to market their products
“The mill has great cultural and commercial value,” says Fabiana, an indigenous Kiriri in Brazil. “It helps strengthen our culture – not lose it. Now I have big hopes for the future.”
Learn more about IFAD’s work in Latin America and the Caribbean.
million
in the region’s
ongoing portfolio
million
approved in 2023
programmes
and projects
programmes
and projects
strategy notes
Highlighted project
Djibouti
The Soil and Water Management Programme (PROGRES) is bringing about improvements in natural resource management and nutrition and is changing the positions of women in communities. A major focus is the improvement of water infrastructure. PROGRES has constructed multiple cisterns and reservoirs, reducing the travel time for fetching water and providing communities with safe water. The programme supports income-generating activities for women and training for improved nutrition.
Time spent collecting water for households is down from 35 to 10 hours per week
Fivefold increase in annual production of pastures
240 counsellors trained to disseminate life-saving practices to prevent maternal and child malnutrition
Improved care for stunted children provided through a community fund
“After just one rainy season, we could see the results,” says Togirkhon Aymatov, a horticulturist in Tajikistan. “There was no erosion on the hectare with pistachio trees, whereas the adjacent area was further eroded by heavy spring rains. That was enough to convince us.”
Learn more about IFAD’s work in the Near East, North Africa and Europe.
million
in the region’s
ongoing portfolio
million
approved in 2023
programmes
and projects
programmes
and projects
Highlighted project
Ghana and Nigeria
The Promoting Sustainable Cage Aquaculture in West Africa (ProSCAWA) project strengthened rural livelihoods in Ghana and Nigeria by applying knowledge, technologies and expertise in cage aquaculture. Implemented in collaboration with two private sector companies, ProSCAWA developed the capacity of fish farmers for profitable cage culture businesses. Productivity increased, for example, from 700 kg of fish every eight months to 3,000 kg in six months at one of the project sites in Nigeria.
Over 500 smallholder fish farmers were trained in small-scale cage aquaculture best management practices and business development
Increased availability of affordable fish protein improved nutrition in local communities
An online fish marketing platform was developed
“I built a processing factory with good equipment such as stainless fryers, a grating machine, and pressers which I accessed through the use of digital technology,” said Watsaji Angye. “I have also built and opened up a new shop where I sell my products.”
Leading the way towards a more sustainable planet
Climate change, damage to ecosystems and biodiversity loss are epochal global challenges. They are central to IFAD’s work and to the livelihoods of the rural people we serve.
Rural people are among those most affected by the impacts of climate change. At the same time, they are underserved by existing climate finance. IFAD has an important role in channelling climate finance to rural communities.
We also work with small-scale farmers to reduce their emissions from their agricultural activities and to find solutions to safeguarding the rich sources of biodiversity of which they are custodians.
Find out more about how IFAD is leading the way towards a sustainable planet.
Financing for the future
IFAD is aware that official development assistance (or ODA) will not be sufficient to take us where we need to go. That’s why, over recent years, we have embarked on a series of ambitious reforms to our financial architecture.
Backed by the confirmation of its credit ratings, in 2023 IFAD continued to broaden its funding sources and to deepen its presence in capital markets. We also launched our first impact report, aligned with the International Capital Market Association harmonized framework for impact reporting, showing how the proceeds of the bonds we have issued would directly contribute to the SDGs.
Catalysing donor investment for rural areas
It has become clear that the Sustainable Development Goals are unlikely to be achieved by 2030. Poor rural communities are among the most severely hit by multiple crises – such as climate change, conflict and economic instability. To step up progress towards the SDGs, investment in rural people must be scaled up significantly.
In 2023, IFAD Member States met to agree on priorities and targets for the IFAD13 cycle (2025 to 2027), reaching a broad consensus on the need to invest in ambitious solutions to today’s challenges.
Influencing the global agenda and widening impact through partnerships
IFAD participates in global processes, sharing its knowledge and advocating for more investment in rural people. In 2023, we were given lead responsibility for a major G7 initiative on strengthening engagement with small-scale producers. We also contributed to some important global policies and guidelines developed by the Committee on World Food Security.
We continued to strengthen the contribution of South-South and Triangular Cooperation and Rome-based agency collaboration in IFAD-supported projects and programmes.
Find out more about these and other initiatives in IFAD’s global engagement in 2023.
Providing IFAD’s staff with what they need to succeed
As an organization with a people-focused mandate, we cannot fail to realize that our strength lies in our people. IFAD continues efforts to provide staff with the working environment they need to thrive.
During the year, we surpassed the 2023 target of 40 per cent of staff in field duty stations and are on track to reach the 45 per cent target by the end 2024. Thanks to streamlined recruitment practices and increased collaboration across the organization, IFAD’s vacancy rate was brought down below the 12 per cent threshold indicated in our corporate risk dashboard.
Find out more about these and other milestones in IFAD’s internal processes.
Putting knowledge and innovation to use for greater impact
State-of-the-art knowledge is a prerequisite for IFAD to succeed. In 2023, IFAD delivered a range of knowledge products that will contribute to our work – and that of our partners – in the years ahead.
We also continued to advance our innovation work, bringing together partners, sharing insights, new ideas and new instruments for new solutions. We benefited from evaluations from our Independent Office of Evaluation and from sharing knowledge from project review.
Tracking projects using cutting-edge technologies
A thorough understanding of conditions on the ground in remote rural communities is fundamental to the success of IFAD-supported projects. That’s why we are increasingly using cutting-edge geographic information system (GIS) technologies in IFAD-supported projects.
If a picture is worth a thousand words, then a precise map is surely worth many more. GIS allows us to pinpoint the location of communities and map project activities, even in highly remote rural areas, where many IFAD-supported projects take place.
Find out more about how GIS technology is contributing to our investments in rural communities.
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