WILLAGRI
According to the United Nations, the goal of eradicating hunger by 2030 is on hold, by which time the world is expected to have 532 million undernourished people. Massive investments in food systems are indeed necessary. The International Fund for Agricultural Development (IFAD) – a specialized agency of the UN – works to attract private investment to support sustainable food initiatives, but emerging countries often lack “bankable” projects. Blended finance models could reduce risks for private investors.
Since 2019, the number of hungry people has increased by 152 million, reaching 733 million. IFAD estimates that $350 billion to $400 billion a year is needed to improve food systems. IFAD issues nutrition bonds to finance food projects, including a $50 million one for school feeding programs and agricultural infrastructure, among other things. In addition, thematic bonds, such as green and social bonds, have seen strong growth since 2015, but few funds are investing in emerging markets. Only blended finance models could reduce the risks for private investors in emerging markets.
Source : The Wall Street Journal