World Bank launches new scheme for smallholder farmers, to double agribusiness investment to $9bn

The World Bank has launched ‘AgriConnect’, its flagshipinitiative meant to boost agriculture and assist smallholder farmers in movingfrom subsistence to surplus. Ajay Banga, president of the World Bank Group, spoke onFriday during the annual meetings of the International Monetary Fund (IMF)/World Bank in Washington DC, the United States. Banga said AgriConnect is the bank’s new initiative to turnsmall-scale farming into an “engine of lasting growth, jobs, and foodsecurity”. The president said the initiative builds on the ecosystemaround cooperatives that would integrate financing for farmers and SMEs, linkproducers to markets and harness digital tools, like artificial intelligence. This, he said, is underpinned by a pledge to doublefinancing in agribusiness to $9 billion yearly and mobilise an additional $5billion. He said the group is also finalising a minerals and miningstrategy to help countries move beyond raw extraction into processing andregional manufacturing. The president further said the move would enable more valueand more jobs to “stay local”. “We expect to share this strategy in the coming months,” hesaid. “So, how do we make this real? We begin with a singleCountry Partnership Framework across the World Bank Group, that is developedwith the country’s leadership and our subject matter experts.” Banja said each framework was a long-term strategic planthat united the full capacity of relevant institutions within the World BankGroup around a focused set of priorities. He noted that the priorities would be tailored to acountry’s unique needs and ambitions. “In one country, that might mean end-to-end mineral valuechains,” the president said. “In another, tourism rooted in nature and culture, perhapsstronger health systems that heal and employ or agribusiness ecosystems thatlift smallholder farmers. “The path is tailored, but the fundamentals are shared.” Banga listed the fundamentals to include buildinginfrastructure, setting clear, predictable rules and supporting privateinvestment. According to the World Bank chief, to reach scale and freeup the balance sheet for the toughest challenges, the group must unlock thefull power of the private sector. He said this is the reason why “we are breaking downbarriers to investment and creating conditions where private capital candeliver development impact”.

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