IFAD’s Engagement with the Private Sector in pro-poor agricultural value chain development
From 10-12 July 2019, a member of PCU Mr. Tuan participated in the 2nd Mekong Knowledge Learning & Fair (MKLF) organized by the IFAD’s Mekong Hub in Bangkok, Thailand, on behalf VCB-N. In this event, VCB-N had a joint booth with the Grow Asia network, with which a collaboration in promoting inclusive VC in agricultural sector is being discussed. Beside learning experiences shared by IFAD loan projects implemented in some countries in the Mekong region such as Cambodia, Laos, Thailand and Vietnam, updated trend and adjustment of IFAD’s vision towards pro-poor agricultural investments globally and regionally, have been shared.
Photo credit: The 2nd MKLF, Bangkok, Thailand (10-12 July 2019)
With the commitment toward achieving of the SDGs, IFAD has so far given effort to increasing poor rural people’s productive capacities, their benefits from market participation and strengthen the environmental sustainability and climate resilience of economic activities. This effort is visible through financial resources allocated to different priority areas such as integration of the rural poor in value chains (35%), agricultural technologies and effective production services (26%) and inclusive financial services (14%).
In the Asian and Pacific Region, the trend is in financing by sectors prioritizes on market and related infrastructure, natural resources management, agricultural production and community driven development.
Given the above trend, IFAD has recently amended its visionary plan, namely ‘IFAD 2.0 Vision’ for the period from 2016 to 2025. The new plan emphasizes ‘Private-Sector Strategy including Private Sector Window to crowd-in funding’. The amendment enables space to authorize direct funding to the private sector. The current vision highlights the importance of VCs in all development activities. VCs are seen as one of leverage ways to increase poor’s people’s benefits from market participation. These will be channeled via multiple entry points, not only at primary production, but private sector partnerships. Therefore, an approach tailored to the specific contexts and win-win opportunities to cover corporate commitments (e.g. gender, nutrition, youth and climate change) will be mandated. The Regional Value Chain Capacity Building Network (VCB-N) is among the list of models of the IFAD’s plan which provides professional advisory services and capacity building on Value Chain and Market System (VC & MSD) in Asia and Pacific Region (APR).
Download for more details: MKLF 2019 IFAD Private Sector Engagement