Norway and the International Fund for Agricultural Development (IFAD) today reaffirmed their strong strategic partnership and commitment to investing in rural people as a foundation for food security, inclusive economic growth and global stability.
Following a meeting last week in Oslo between Åsmund Grøver Aukrust, Norway’s Minister of International Development, and Alvaro Lario, President of IFAD, Norway and IFAD issued a joint statement to underscore the urgency of sustained and well targeted investment in agriculture, food systems and rural development, as rural communities are home to 80 per cent of the world’s poorest people.
The discussion took place as consultations for IFAD’s Fourteenth Replenishment of core resources (IFAD14), which will finance the Fund’s programme of work from 2028 to 2030, are ongoing.
“Rural development is not only a development priority, but also a strategic investment in stability and social cohesion,” said Lario. “When rural communities have access to markets and opportunities, incomes rise, productivity increases, and the risks of instability and distress migration decline. Partners like Norway are key to help take these investments to scale.”
Participant incomes risen sharply
Lario highlighted IFAD’s record of turning public contributions into impact at scale. Since its creation, IFAD’s multiplier effect has turned every dollar received into around six dollars of high-impact investment at the first mile of food systems, mobilizing cofinancing from governments, development partners and the private sector. Recent results show strong returns: over the last three-year assessment, participant incomes have risen by over 30 per cent, alongside similar gains in production and market access.
As Norway advances reforms to sharpen the effectiveness and impact of its development cooperation, IFAD14 offers a strategic investment platform focused on the first mile of food systems—where most of the world’s poorest people live and where mainstream investors rarely operate.
The replenishment will contribute to de-risk investment at the first mile by blending concessional finance, guarantees, and commercial capital to mobilize private sector partners and reach excluded communities. Projects with strong private sector participation achieved 64% income gains—four times higher than projects without such engagement—when paired with market access, bundled services, and finance. As stated in the joint statement: “We reaffirm the central role of the private sector across food systems”.
Norway and IFAD agreed to continue their cooperation toward improving conditions for responsible private investment in rural areas; mobilizing more financing for inclusive rural development; and stepping up joint efforts to raise awareness of global food security challenges and solutions. Norway is among IFAD’s leading partners and increased its contribution by 170 per cent since 2018.