News story | 17 April 2025

IFAD and IsDB Presidents call for closer coordination among development banks to support food systems at the first mile

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As global hunger rises and climate shocks intensify, the leaders of the International Fund for Agricultural Development (IFAD) and the Islamic Development Bank (IsDB) agreed to scale-up their partnership and called for all multilateral development banks (MDBs) and other financial institutions to urgently align to meet the growing needs of the world’s most vulnerable communities. 

In a wide-ranging conversation held at IFAD’s Rome headquarters, IFAD President Alvaro Lario and IsDB President Dr. Muhammad Al Jasser underscored the need for more integrated, scaled-up responses to rural poverty and food insecurity — starting where food systems begin.

“If we are serious about development, we have to start with agriculture,” said President Al Jasser. He urged a shift in thinking and investment strategies that puts early-stage food systems—the “first mile”—at the centre, rather than treating agriculture as an afterthought. 

President Lario echoed the call. “Rural poverty and rural hunger start at that first mile,” he said. “So, it's important that the people producing the food actually do not go hungry.” Infrastructure—such as roads and irrigation—and access to markets are key, he added, if small-scale farmers are to build resilience and expand their businesses. 

That shared vision has shaped the partnership between IFAD and IsDB, which has grown in recent years through co-financed investments across regions. Reflecting on joint work in Nigeria and Central Asia, the two leaders agreed the model is working—but not yet at the scale needed. “The needs are rising,” said President Al Jasser. “We need to scale up what we are doing.”   

One project seen as a blueprint for such scale is the Special Agro-Processing Zones initiative in Nigeria. President Lario described how it began as a small venture with private-sector involvement and expanded with support from development banks. “Now the government wants to bring it to many more regions,” he said. “We should be investing in storage facilities, in distribution, in how to facilitate certification for exporting—just the entire value chain.” 

For President Al Jasser, the takeaway is clear: “We should always be looking at the next one—and to become even more ambitious.” 

Throughout the conversation, both leaders stressed that coordination across institutions is not just a matter of efficiency but of effectiveness. President Lario welcomed IsDB’s leadership in bringing MDBs together to harmonize standards and investment approaches. Countries, he said, are asking institutions to show up not with fragmented initiatives, but with joined-up solutions. 

Their discussion also turned to the global financing landscape, ahead of the Fourth International Conference on Financing for Development in Seville. President Al Jasser emphasized the importance of preparation and local consultation: “You have to start from the down up,” he said, when it comes to financing solutions that reflect the real needs of rural communities. 

In closing, President Al Jasser reflected on the shared history of the two institutions, both shaped in part by the vision of the late King Faisal of Saudi Arabia. “These two institutions should be at the forefront of collaboration,” he said. “And as you said, MDBs this time have shown that they really know how to work together much better than before. We are a team.” 

“We can. We should,” President Lario replied. “And we will.” 

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