World Bank to Double Agricultural Investments by 2030

WASHINGTON (Reuters) – The World Bank will double its commitment for investments in agricultural financing and businesses to $9 billion a year by 2030, announced the lender's president on Wednesday.

Ajay Banga stated, "We've examined the challenges from every angle — how to increase food production, boost productivity, and resolve issues around water scarcity, fertilizers, infrastructure, and financing," during an event at the Annual International Monetary Fund/World Bank Group meetings.

"We are combining a new way of working with a new level of investment."

The Washington-based multilateral lender noted that several recent shifts in the agribusiness landscape, along with internal reforms at the World Bank, would enable an increase in funding for agriculture.

One key strategy is to leverage more climate finance resources, as the sector, which is both vulnerable to climate risks and a significant contributor to emissions, currently receives only 4% of global climate finance.

Ajay Banga emphasized that increasing the use of de-risking tools, such as credit guarantees, first-loss facilities, and insurance instruments, would make lending safer and more commercially viable, attracting more private capital.

Advancements in digitalisation also facilitate the aggregation of farming businesses, connecting them with buyers and financial service providers.