The International Finance Corporation (IFC) and the World Bank Group, supported by the European Union, on 7 April announced a major initiative to boost private sector agriculture output in Southern Africa to help the region meet a growing demand for food, and to support economic growth and job creation.

To launch the initiative, IFC, the World Bank, and the European Union hosted a Regional Agricultural and Food Security Forum from 6-9 April in Livingstone, Zambia, attended by industry leaders, private and public sector partners, financial institutions, farmer organisations, and civil society groups.

Participants discussed ways to help emergent and small-scale farmers more easily access finance, and improve the quantity and quality of their products.

The forum was  supported by the Netherlands’ Rabobank and the Zambia National Commercial Bank, and facilitated by Dalberg.

Peter Daka, Zambia’s Minister of Agriculture, said, “Broader access to agriculture finance will require both public and private finance to support high impact interventions. Finding a formula for a sustainable partnership between the two will stimulate private sector led agriculture growth in the region.”

Karen Brooks, Sector Manager for the Agriculture and Rural Development Department of the World Bank, said, “Agriculture plays a critical role in Africa’s economic development and is a priority sector for IFC and the World Bank Group on the continent. The World Bank Group and its partners are supporting private-sector -ed growth across Africa’s agriculture sector to help commercialize subsistence agriculture.”

Francesca Di Mauro, Head of Section Economics and Rural development from the European Union Delegation in Zambia, said, “Agriculture is the main employer for most countries in Southern Africa, and has the potential to lift many people out of poverty. The European Union fully recognises agriculuture’s pivotal role and promotes a private-sector led development of the sector, with predictable government policies, and an enabling environment for small-scale farmers.”

IFC is increasing support for African agribusiness in response to growing demand and rising prices for basic crops, a combination that threatens to send millions back into poverty. IFC’s direct investments and investments through financial intermediaries into African agribusiness companies totaled $160 million in FY09.

IFC launched the Africa Agriculture Finance Project (AAFP) in September 2009 to support farmers across sub-Saharan Africa. A program in Zambia was the first project to be rolled out under the AAFP.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, IFC is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including supporting the growth of Africa’s important agriculture sector

IFC is a member of the World Bank Group.

(Source: The Financial global news channel – http://www.finchannel.com/Main_News/Business/61784_World_Bank_Group_Launches_Drive_to_Support_Agribusiness_Growth_in_Southern_Africa)