Empowering Public Development Banks in agriculture financing
Closing financial gaps for sustainable food systems
Public development banks (PDBs) account for almost two-thirds of formal agriculture financing, and they can contribute to covering the financial gaps in economic sectors that are not adequately supported by commercial banks. With their current annual investment of nearly $1.4 trillion and their role in public development, PDBs would be ideally situated to direct the world’s financial systems towards addressing the inequities and inefficiencies of our food systems more effectively and sustainably. In order to effectively fulfill their leadership role, most PDBs can support these challenges by continuously adapting their processes and financial service offerings.
Recognizing Public Development Banks vital role
During the first Finance in Common Summit in Paris (FiCS, 2020), PDBs were recognized as playing a critical role in financing and supporting investments that contribute to achieving the 2030 agenda and the Paris Agreement.
Formation of
Agricultural PDB Platform
Following this, both the UN Food Systems Summit and the FICS confirmed the interest of implementing a Coalition of PDBs financing agriculture and rural development. It was decided to create an Agricultural PDB Platform to help the members to assess their portfolio quality and climate change impacts, as well as ensure that all projects will progressively be carbon neutral and protect ecosystems.
Fostering Green
and Inclusive Food Systems
The Agricultural Public Development Banks Platform for Green and Inclusive Food Systems (Agri-PDB | Platform) is hosted by the International Fund for Agricultural Development (IFAD) in partnership with the French Development Agency (AFD). The access is free for Public Banks or institutions which have a public mandate to finance agriculture.
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11rst FICS Paris 2020Ag. Cluster affirmed thair commitment to increase investments in sustainable food asystems.
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2UNFS Summit 2021UNFS endorsement to create a robust PDB Platform for Green Inclusive Food Systems.
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32nd FICS Rome 2021Hosted by CDP, formal launch of the PDB Platform supported by G20.
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4PDBs leading by IFADIFAD is leading the cluster of agricultural PDBs (about 130 in 98 countries), which is part of the Public Development Banks Coalition (about 530 PDBs) coordinated by the Finance In Common general secreatariat hosted by the AFD.
Agri-PDBs regional Organisations
In 2024, the Agri-PDB coalition counts 134 Agri-PDBs Members and 8 regional Organizations and Networks:
- AADFI (Association of African Development Finance Institutions)
- ADFIAP (Association of Development Financing Institutions in Asia and the Pacific)
- ADFIMI (Association of National Development Finance Institutions in Member Countries of the Islamic Development Bank)
- ADFIP (Association of Development Financing Institutions in the Pacific)
- AFRACA (African Rural and Agricultural Credit Association)
- ALIDE (Latin American Association of Development Financing Institutions)
- APRACA (Asia-Pacific Rural and Agricultural Credit Association)
- NENARACA (Near East North Africa Regional Agricultural Credit Association)
Advancing sustainable agriculture in ACP Nations
The European Commission is supporting the platform as part of the “Investing in Livelihood Resilience and Soil Health in ACP countries” program. It will promote agroecology and sustainable agricultural practices aimed at improving and sustaining soil fertility, managing water sustainably, and providing inputs tailored to local conditions to small-scale farmers. Further, the program will foster the main activities of the Platform in selected priority countries.
To find out more
The European Commission is supporting the platform as part of the “Investing in Livelihood Resilience and Soil Health in ACP countries” programme. It will promote agroecology and sustainable agricultural practices aimed at improving and sustaining soil fertility, managing water sustainably, and providing inputs tailored to local conditions to small-scale farmers. Further, the programme will foster the main activities of the Platform in selected priority countries.