IFAD Impact Report: US$40 Billion Mobilized for Global Rural Transformation; India’s REAP Project Leverages Over US$480 Million
SDG 1: No Poverty | SDG 2: Zero Hunger | SDG 13: Climate Action
Ministry of Finance | Ministry of Agriculture & Farmers Welfare
The International Fund for Agricultural Development (IFAD) Impact Report 2024 showcases the institution’s role as a key international financial institution and UN specialized agency dedicated to rural development and poverty reduction. IFAD’s core mission is to transform rural economies and food systems by making them more inclusive, productive, resilient, and sustainable.
Key Global Scale and Impact:
Institutional Scope: Established in 1977, IFAD is owned by 180 Member States and is actively engaged in 87 countries globally with 182 ongoing projects.
Direct Benefit: Ongoing IFAD projects have cumulatively benefited 95.6 million rural poor people since their entry into force.
Financial Mobilization: IFAD has provided over US$25 billion in loans and grants and has successfully mobilized over US$40 billion in domestic and international cofinancing over 47 years.
Financial Standing: The institution holds a long-term rating of AA+ from Fitch and Standard & Poor’s, reflecting robust membership support and strong financial risk management.
Global Alignment: IFAD’s program of work contributes to 16 out of 17 Sustainable Development Goals (SDGs).
India-Specific Relevance
As a founding member and major beneficiary of multilateral development banks, India’s economic and social goals are deeply intertwined with IFAD’s mandate. This report highlights alignment in two core areas: strategic goals and operational models.
Strategic Alignment and Poverty Reduction: IFAD’s mission—focused on transforming rural economies, supporting smallholder farmers, and enhancing livelihood security—directly aligns with India’s national priority to uplift its large rural population and achieve the SDG 1 (No Poverty) and SDG 2 (Zero Hunger) targets. The report’s implicit focus on making food systems resilient and sustainable is critical for India, given its high vulnerability to climate change impacts on agriculture.
Flagship Project and Financing Blueprint: India features prominently through the Rural Enterprise Acceleration Project (REAP), approved in 2021. This project serves as a model for leveraging MDB finance:
Total Financing: The project mobilized over US$480 million, with IFAD financing of US$105 million complemented by US$378 million in cofinancing from the government, beneficiaries, and other institutions.
Target Goals: REAP is a policy/institutions project aiming at doubling rural household incomes, reducing distress migration, and promoting cluster-based, climate-resilient production.
Expected Impact: The project is expected to reach 2.744 million household members, with anticipated outcomes including 35,000 rural enterprises accessing business services and 280,000 households adopting sustainable practices.
The success of IFAD in mobilizing US$40 billion in cofinancing globally provides a tangible blueprint for the Ministry of Finance to accelerate domestic resource mobilization and design similar cofinancing models for India’s large-scale rural development and climate-resilient infrastructure projects. India is also noted as being among 15 countries in the bond-supported portfolio in the Asia-Pacific region.
What is the International Fund for Agricultural Development (IFAD)?→ IFAD is an international financial institution and United Nations specialized agency founded in 1977. It is dedicated to eradicating rural poverty and hunger globally by financing and supporting agricultural and rural development projects, emphasizing climate resilience and sustainable food systems.
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