BANGKOK, Thailand, 13 October 2026 The World Bank Group and the International Fund for Agricultural Development (IFAD) have agreed to expand joint financing for rural economies and food systems, with a focus on creating jobs, improving food security and helping communities withstand economic and climate related shocks.
The two international development institutions signed a new Co-Financing Framework Agreement during the 2026 Annual Meetings of the International Monetary Fund and the World Bank Group in Bangkok, Thailand.
The partnership comes as countries face the challenge of creating employment for a growing young population amid slowing economic growth and rising uncertainty. Agriculture and rural enterprise are expected to play a greater role in providing livelihoods, attracting investment and strengthening local economies.
IFAD President Alvaro Lario said the agreement would enable the institutions to combine their resources and experience to increase investment in rural communities.
“Together, the World Bank and IFAD bring the scale, reach and expertise to transform rural economies and agrifood systems,” said Lario.
“This agreement will enable us to turn our shared ambition into greater investment, more jobs, stronger resilience and improved food security for millions of people.”
The agreement builds on existing cooperation between the institutions, including AgriConnect, an initiative targeting the transformation of agriculture for 300 million smallholder farmers by 2030, and Water Forward, which aims to improve water security for one billion people over the same period.
World Bank Group President Ajay Banga said agricultural development could provide economic opportunities for young people while strengthening food production and market access.
“The next generation needs opportunity, and agriculture can be a powerful source of jobs, growth, and food security. That is what AgriConnect is designed to deliver,” said Banga.
“By bringing together the World Bank Group’s financing and global reach with IFAD’s deep expertise in rural communities and food systems, we can help smallholder farmers become more productive, connect them to markets, attract private investment, and create jobs where millions of young people live.”
The World Bank Group is IFAD’s largest multilateral development bank partner. Their cooperation covers joint financing, policy engagement and international development programmes.
Financial commitments under the partnership have grown significantly. IFAD’s co-financing with the World Bank’s International Development Association (IDA) more than doubled, rising from approximately US$646 million in 2021 to US$1.56 billion in 2025.
Under the new framework, the institutions intend to identify and develop additional joint projects throughout the investment cycle, building on programmes already underway in developing countries.
One example is a US$70.5 million national investment programme in Lesotho, which has created nearly 1,500 jobs and delivered nutrition education to 217,000 people.
The programme has also supported the adoption of climate smart agricultural practices by more than 106,000 people, while agro-weather services have reached over 900,000 people.
For African countries, such investments are particularly relevant as governments seek to improve agricultural productivity, strengthen rural livelihoods and create employment opportunities beyond major urban centres.
The agreement will also support IFAD’s 14th replenishment cycle, covering 2028 to 2030. The cycle is intended to accelerate investment in climate resilience, expand economic opportunities and improve livelihoods in rural communities.
The revised framework updates how the two institutions co-finance investments at country level. It also makes it easier for them to use shared arrangements for technical assistance, procurement, financial management, disbursement and environmental and social oversight.
Despite the closer operational cooperation, both organisations will retain their independent policies, financing decisions and accountability requirements.
The partnership dates back to 1978, reflecting nearly five decades of cooperation on international development. The new agreement will initially run for five years, with an automatic renewal for another five year period.
AgriConnect, one of the initiatives linked to the partnership, is implemented by the World Bank Group in collaboration with the African Development Bank, IFAD, the Inter-American Development Bank, Google and Bayer.
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