CHAPTER 3
OPEC FUND SUPPORT TO FOOD SECURITY, AGRICULTURE AND RURAL DEVELOPMENT
Development Finance Institutions (DFIs) such as the OPEC Fund have long recognized the crucial role of strengthening the agriculture sector for food security, and more generally the importance of driving rural development for inclusive economic growth and improved livelihoods. In addition to providing direct support to farmers and the context they are working in (such as through the improve- ment of infrastructure and social services for rural popula- tions), DFIs have also supported agribusinesses throughout the value chain. A thriving agribusiness value chain can help rural communities by creating sustainable employment, en- hancing food security, and promoting economic prosperity. Moreover, agribusiness plays a vital role in connecting farm- ers to local, regional and international markets. Through value chains and supply networks, agribusiness enterprises provide a platform for farmers to sell their produce at fair prices, ensuring a steady income. By facilitating market link- ages, agribusiness reduces the risk of market fluctuations and enables farmers to access a wider customer base. This not only improves the financial well-being of farmers but also encourages agricultural expansion and investment in rural areas. Another focus of DFI support has been the integration of technology and innovation in agribusiness due to their po- tential to provide significant benefits to rural communities. Access to advanced farming techniques, precision agricul- ture and digital tools can significantly enhance productivity and efficiency. From soil testing and crop monitoring to im- proved irrigation systems, technology-driven solutions em- power farmers to optimize resource utilization and increase yields. This, in turn, drives economic growth, attracts invest- ment, and promotes sustainability in rural agriculture.
Support to the agriculture sector and rural development has long been a major focus of the OPEC Fund’s support to its partner countries. Responding to the recently exacerbated stresses on food systems and the resulting significant need for food aid and investment in agricultural resilience and value chains, the OPEC Fund approved a US$1 billion Food Security Action Plan (FSAP) to support its partner countries during these trying times (see box on page 39). In line with the OPEC Fund’s model of collaborating for impact, in June 2022 the Fund furthermore convened its fellow members of the Arab Coordination Group (ACG) 7 to issue a joint pledge of US$10 billion for food security action.
The OPEC Fund approved a
The following
US$1 BILLION FOOD SECURITY ACTION PLAN to support its partner countries.
7 The ACG comprises the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa (BADEA), the Arab Fund for Economic and Social Development, the Arab Gulf Programme for Development, the Arab Monetary Fund, the Islamic Development Bank (IsDB), the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development, the Qatar Development Fund; and the Saudi Fund for Development.
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