Increasing demand for food around the world – World



KfW significantly contributes to food security and rural poverty reduction

  • 400 million euros additional for the International Fund for Agricultural Development (IFAD)

  • Support for smallholders, financing of food production and agricultural development

  • Adapt to climate change, fight against the impacts of the pandemic

Today in Rome, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW signed a new promotional loan agreement in the amount of 400 million euros with the International Fund for Agricultural Development (IFAD). An initial amount of € 400 million was provided in 2014. As an international financial institution and a specialized United Nations agency based in Rome, IFAD aims to improve food security in developing countries. Key issues in this area include increasing agricultural production and adapting agriculture and the food sector to climate change. The current focus is on tackling the impacts of the coronavirus pandemic, which has negatively impacted supply chains around the world and thus also disrupted the food supply of poor rural people in particular. With funds from KfW, IFAD will be able to finance a significant portion of its planned investments – in total, up to USD 3.5 billion between 2022 and 2024. The funds help smallholders increase their production through improved cultivation and animal husbandry techniques as well as modern irrigation systems that conserve water, among other measures, and also enable them to better market their products and clarify land use rights. They are also used to establish rural finance systems. KfW funds support the work of IFAD, thereby contributing to the food security of poor rural people around the world.

“Global demand for food will double over the next 50 years. Climate change increases the risks of production and reduces harvests. In addition, smallholders face increasing challenges due to the gradual transformation of global and local food markets. For this reason, IFAD and KfW consider smallholders to be at the heart of agricultural development measures that serve both to increase food security and reduce poverty, ”said Christiane Laibach, Board member of the KfW.

Further information on the KfW Development Bank is available at

IFAD invests in rural people, empowering them to increase their food security, improve their families’ nutrition, increase their incomes and strengthen their resilience. Since 1978, IFAD has provided approximately US $ 23.2 billion in grants and low-interest loans to projects that have reached an estimated 518 million people. IFAD currently supports 203 projects around the world. IFAD is an international financial institution and a specialized agency of the United Nations based in Rome, the United Nations’ food and agriculture hub.


Portrait of Dr Charis Pöthig
Dr Charis Pöthig

+49 69 74 31 46 83
+49 69 74 31 32 66
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