NIGERIA- The International Fund for Agricultural Development (IFAD) has issued a US$50 million bond under its Sustainable Development Finance Framework (SDFF) to the Japanese association Zenkyoren (National Mutual Insurance Federation of Agricultural Cooperatives) to enhance food security in developing countries.
The funding is IFAD’s first nutrition bond under SDFF.
The bond is intended to support IFAD’s investments in various rural development programs, especially in Nigeria and the rest of Africa, and enhance nutrition and food security for millions of people.
According to IFAD, the funds will be used to fully integrate nutrition in the various IFAD-funded programs and meet nutrition commitments for the 2025-2027 SDFF program. IFAD reiterated that it intends to use bond issuance to address the underlying causes of malnutrition in at least 60% of its financed agriculture development projects.
Although the funds will be primarily used to enhance food production in targeted developing countries, the funds will also be used to address issues like inadequate healthcare for mother and child feeding practices and unhygienic environments.
IFAD hailed the move, stating the bond issuance and the objectives of the partnership aligns with its development goals.
IFAD said in a statement, “Nutrition is one of IFAD’s four cross-cutting thematic commitments, as a nutrition lens is applied in the design and implementation of investments in agriculture, supporting rural people to improve their diets by growing and consuming diverse, nutritious, safe and affordable foods.”
Zenkoyen also welcomed the move, reiterating that it would help the association tackle malnutrition in small-scale rural areas by offering much-needed support to farmers in Africa and beyond. The association reiterated that although it is important to tackle the causes of malnutrition in health and hygiene, the most important aspect of the program will be providing assistance to these small-scale farmers to enhance their production.
As such, its assistance through IFAD’s SDFF program will mirror support offered to its 10 million members in japan, which prioritize offering services, training and equipment with a net positive impact of first enhancing production of high-quality, nutritious products then the oher underlying factors surrounding malnutrition.
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