MANILA, Philippines — The International Finance Corp. (IFC) has launched a $6 billion financing facility to help the private sector respond to the food crisis and boost food production.
In a statement yesterday, IFC said the amount would be used to support private sector companies along the food value chain.
It will leverage on IFC’s sectoral expertise in agribusiness, manufacturing, infrastructure, and technology, as well as the financial sector and trade finance.
The facility is being made available by the private sector arm of the World Bank Group as the war between Russia and Ukraine, and the uneven global recovery from the 2019 pandemic have added to the rising levels of hunger and malnourishment.
IFC said hunger has already been worsened by climate change and severe weather events that are damaging harvests and reducing yields.
“The private sector has an essential role to play in alleviating food insecurity and in creating lasting solutions. By strengthening supply chains and ensuring that people have access to and can grow affordable food, this initiative will contribute to building resilient food systems in the most vulnerable regions,” IFC managing director Makhtar Diop said.
IFC’s financing facility will supplement the World Bank’s commitment to make $30 billion available to address food insecurity.
World Bank’s financing will be made available for existing and new projects that encourage food and fertilizer production, enhance food systems, facilitate greater trade, and support vulnerable households and producers.
Aside from the financing facility, IFC said it is also working closely with development finance institutions, foundations, banks, as well as a range of private companies, to mobilize action to address global food security challenges.
In the World Bank’s Macro Poverty Outlook report released last week, it said food security and disasters are among the risks seen to the Philippines’ growth outlook.
“Food security may be challenged amid low productivity in domestic agriculture,” the World Bank said.
“Climate-related disasters pose a risk to lives and livelihoods and may impose additional fiscal costs to the government,” it said.