IFAD partners with Bank Al-Maghrib to enhance food security with $150 million bond

The International Fund for Agricultural Development (IFAD) has announced a renewed partnership with Bank Al-Maghrib, Morocco’s central bank, aimed at bolstering food security and supporting rural communities globally. This collaboration is underscored by the issuance of a $150 million sustainable bond, which Bank Al-Maghrib has purchased as part of its commitment to IFAD’s mission.

This bond, with a term of ten years, marks the second investment from Bank Al-Maghrib in IFAD’s bond program. The initial investment of €100 million occurred in July 2024, reflecting the bank’s ongoing support for IFAD’s development initiatives set for the upcoming year.

“Having the Bank Al-Maghrib as a repeat investor makes us particularly proud,” remarked Natalia Toschi, Head of Funding at IFAD. “It demonstrates the importance of long-term relationships in advancing IFAD’s global mission, which is increasingly vital for fostering a more stable world.”

The funds raised will directly support IFAD’s efforts to assist small-scale farmers, enhancing their incomes, food security, and overall resilience. Additionally, these investments will fund projects promoting sustainable development while combating poverty and hunger.

Donal Brown, Associate Vice-President of IFAD’s Country Operations Department, emphasized the deep-rooted ties between Morocco and IFAD. “This renewed collaboration builds on over four decades of partnership, highlighting Morocco’s significant role in our portfolio,” he stated.

Morocco’s commitment to rural development is notable, with more than $1.7 billion invested across 16 projects since 1979, positively impacting over 700,000 rural households. Current projects, valued at $250 million, align with Morocco’s “Génération Green 2020–2030” strategy, focusing on empowering women and youth in mountainous regions.

IFAD’s initiatives are increasingly critical as the organization highlights that approximately 3 billion people reside in rural areas of developing nations. Among these, small-scale farmers generate one-third of the world’s food yet continue to grapple with poverty and hunger; currently, about 730 million people suffer from hunger, equating to nearly one in every eleven individuals. Investing in rural areas is pivotal for achieving the Sustainable Development Goals, particularly SDG 1 (No Poverty) and SDG 2 (Zero Hunger).