The International Fund for Agricultural Development (IFAD) and the Development Bank of Southern Africa (DBSA) have signed a Memorandum of Understanding (MoU) to join forces in rural development projects across the African continen
The MoU creates a framework for both IFAD and DBSA to mutually benefit from each institution’s expertise, with the goal of investing in people-centred projects that enhance wider rural economic development in African member states.
The agreement was formalized during a signing ceremony held on the sidelines of the Finance in Common Summit (FiCS) in Cape Town today. It provides a pathway for a co-financing partnership between one of Africa’s leading development finance institutions with a four-decade long track record of financing sustainable infrastructure and a United Nations agency and international financial institution (IFI) specializing in lifting rural populations out of poverty with almost 50 years of experience in rural and agricultural development.
Agricultural machinery
“We are excited to be working with a leading Public Development Bank such as DBSA,” said IFAD President Alvaro Lario. “The partnership offers an important opportunity to jointly leverage additional resources and expertise for our projects, enhancing their impact on rural development, poverty reduction, climate resilience and economic growth across Africa.”
“Infrastructure is at the heart of what we do at DBSA, and our impact is strengthened through the power of partnerships. By working together with like-minded stakeholders, we unlock innovative solutions, drive sustainable development, and create lasting change in communities. It is through collaboration that we harness our collective strength to build a more resilient and prosperous future for all,” said Boitumelo Mosako, CEO of DBSA.
Under the agreement, IFAD and DBSA will actively support a co-financing pipeline where IFAD-supported projects are further bolstered financially and technically by the bank, contributing to improved project design and implementation, ultimately ensuring enhanced development outcomes in rural communities.
The ambitious partnership embraces both financial and technical aspects of development. IFAD and DBSA will cooperate on six areas: integrated sustainable development that enhances the well-being of targeted rural communities; environmental conservation and resilience through innovative practices and financing instruments; empowerment of rural communities with improved value chains and social infrastructure that contributes to dynamic economies; knowledge sharing and capacity building; regional collaboration and financing for transforming rural areas; governance and policy support.
Source :Farmers Review Africa
