The World Bank Group and the International Fund for Agricultural Development (IFAD) have signed a new co-financing agreement to scale up investments in rural economies, strengthen food systems and create jobs.
The agreement was signed on Tuesday during the 2026 Annual Meetings of the International Monetary Fund and the World Bank Group in Bangkok, Thailand.
It is designed to strengthen collaboration between the two institutions in promoting rural transformation, building resilience, supporting entrepreneurship and improving food security amid slowing economic growth and rising uncertainty.
IFAD President Alvaro Lario said the partnership would combine the institutions’ resources, reach and expertise to drive investment and improve livelihoods in rural communities.
“Together, the World Bank and IFAD bring the scale, reach and expertise to transform rural economies and agrifood systems,” Lario said.
He said the agreement would translate their shared ambitions into increased investment, job creation, stronger resilience and improved food security for millions of people.
World Bank Group President Ajay Banga said agriculture could provide significant opportunities for employment, economic growth and food security, particularly for young people entering the labour market.
He said the agreement would combine the World Bank Group’s financing capacity and global reach with IFAD’s expertise in rural communities and food systems.
According to Banga, the collaboration would help smallholder farmers improve productivity, access markets, attract private investment and create jobs in rural areas.
The agreement builds on existing joint initiatives, including AgriConnect and Water Forward.
AgriConnect aims to transform agriculture for 300 million smallholder farmers by 2030, while Water Forward seeks to improve water security for one billion people by the same year.
The World Bank Group is IFAD’s largest multilateral development bank partner, with cooperation spanning co-financing, policy engagement and global initiatives.
IFAD’s co-financing with the World Bank’s International Development Association rose from about $646 million in 2021 to $1.56 billion in 2025, more than doubling in four years.
The new framework will enable the institutions to identify and develop joint operations throughout the investment cycle, building on existing programmes, including a $70.5 million national investment in Lesotho.
The Lesotho programme has reportedly created nearly 1,500 jobs and provided nutrition education to 217,000 people.
It has also supported more than 106,000 people in adopting climate-smart agricultural practices, while agro-weather services have reached over 900,000 people.
The agreement is expected to advance IFAD’s 14th replenishment cycle for 2028 to 2030 by accelerating investments that strengthen resilience, expand economic opportunities and improve rural livelihoods.
It also updates arrangements for co-financing country-level investments and facilitates the use of common procedures for technical support, procurement, financial management, disbursement, and environmental and social oversight.
However, the agreement preserves the independent policies, financing decisions and accountability requirements of both institutions.
The framework, which builds on cooperation dating back to 1978, will initially remain in force for five years and automatically renew for another five-year period.
