1. IFAD’s Investments for Food Security
in the Arab World
Omer Zafar
Near East, North Africa and Europe Division
International Fund for Agricultural Development
Food Secure Arab World – A Roadmap for Policy & Research
Beirut, 6-7 February 2012

2. Cereals demand and supply in Arab Countries
Cereal demand and supply in Arab countries (2000 – 2030)

3. IFAD’s investments to improve food security
 managing natural resources
 increasing agriculture productivity
 promoting rural finance
 upgrading value chains
 creating economic opportunities
 public-private partnerships

4. Natural resource management - water
Water scarcity
 75% decline in per capita renewable
water resources since 1950
 projected further 40% decline in
water resources by 2050
IFAD’s investments
Improved Water Management
Local
Appropriate Water
Institutions
Technologies Infrastructure
(WUAs)

5. Natural resource management - water
IFAD investments include:
 soil and water conservation
 rainwater harvesting
 alternative water resources
 distribution systems
 on-farm water use efficiency
 livestock water points

6. Natural resource management - land
Syria: investing in land reclamation through de-rocking
 total area reclaimed is more than
700,000 hectares, or 12% of total
cultivable area
 IFAD investments contributed to de-
rocking 180,000 hectares
 directly benefitting 70,000 households,
doubling arable land in targeted areas

7. Natural resource management - rangelands
Status: rangelands are at risk of degradation, with economic losses
IFAD investments include:
deferred grazing veterinary services linking pastoralists’
institutions with
shrub plantation genetics improved
services and
reseeding water availability markets
Resource Resource Institutional
Conservation Management Support

8. Increasing agricultural productivity
Status
 cereals yields are 50% of world average
 cereals productivity growth is declining
 horticulture productivity growth is
relatively good

9. Increasing agricultural productivity
IFAD investments include:
 R&D partnerships
 improved varieties
 improved management practices
 demonstration plots & field schools
 increased private sector role
Agricultural Extension Delivery
Technologies Services Systems
Increased Agricultural Productivity

10. Promoting rural finance
 support access to a variety of financial services
 promote a range of financial institutions and modalities
 support demand-driven and innovative approaches
 encourage market-based approaches
 focus on sustainability and poverty outreach
 promote an enabling environment for rural finance

11. Promoting rural finance:
Sanadiq in Syria, Sudan, Somalia, Yemen

12. Promoting rural finance:
Sanadiq in Syria
Achievements
 76 sanadiq created, with 13,500 members (45% women)
 22,000 loans disbursed, amounting to USD 17 million
 loans are short-term with maximum one year duration
 investments in agriculture, livestock, off-farm micro-businesses
Way Forward
 legalisation of sanduq as financial institution
 creation of Apex institution for financial and other services
 linkages for refinancing from financial institutions
 innovative forms of capitalisation

13. Promoting rural finance:
Refinancing
Smallholders
(producers'
associations)
Financial
loan Ministry of Refinancing loan Institutions
IFAD Markets
repayment Finance Facility repayment loan forward
repayment contract
Agribusiness
(enterprises)

14. Promoting rural finance:
Refinancing
Refinancing helps financial institutions to:
 increase rural outreach and attract new clients
 adapt financial products to rural demand
 invest own funds and leverage additional funds
 introduce innovative collateral requirements (e.g forward contracts)
Way Forward
 diversify financial instruments (micro-leasing, equity financing)
 technical assistance to mobilise deposits and savings (exit strategy)

15. Promoting rural finance:
Equity financing
 temporary strategic investments in rural enterprises (often family-owned
or cooperative) with market demand, growth potential and job creation;
 combined with non-financial advisory services (managerial, technical,
market access);
 the foundation is the value chain approach (agriculture, fisheries,
livestock, off-farm and non-farm sectors)
 economic benefits for the rural poor through backwards linkages with
producers, job creation for unemployed and under-employed, and rural
economic multiplier effects

16. Creating economic opportunities - investments
Market driven investments to promote economic opportunities and create jobs
 selected value chains with comparative advantage, market demand and
growth potential (agriculture, livestock, fisheries, non-farm)
 broad range of rural financial services (savings & credit groups,
microfinance, debt finance, refinancing, equity financing)
 market-derived infrastructure development linked to the selected value
chains
 producers’ associations and win-win contractual arrangements with
processors, traders and markets
 agribusiness development (SMEs linked to smallholders and/or creating job
opportunities) and non-farm enterprises

17. Creating economic opportunities - services
Services for smallholders
 smallholder producers’ associations
 climate-smart, environmentally-friendly technologies
 access to a range of financial services
 access to technical and business services
 GGAP training and certification
 skills development and rural labour market intermediation
Services for enterprises
 access to a range of financial services
 access to managerial, business, technical services
 HACCP / ISO compliance and certification
 market promotion

18. Upgrading agricultural value chains:
operational experiences
Services:
Financial
Business
Marketing
Market
promotion
HACCP / ISO
Services:
PA support
Producers'
forward Agribusiness Market
Technology Association
contract (enterprises) (domestic; export)
(smallholders)
Financial
Business
GGAP
Market-derived Infrastructure

19. IFAD’s active portfolio in the Arab region
 IFAD’s active portfolio in the region covers 10 borrowing/recipient
countries and amounts to USD 930 million
 of this, USD 450 million is financed by IFAD and USD 480 million by
cofinanciers (domestic & external)
 this portfolio is now directly reaching some 2.9 million poor rural
people across about 3,100 communities
 as such, the active portfolio is reaching 2.4% of the rural population
or 6.5% of the rural poor in borrowing/recipient countries
 in 2011, the average investment cost (loan/grant) per beneficiary
amounted to about USD 52

20. IFAD’s active portfolio in the Arab region:
some results
 380,000 ha of land under improved
management practices
 250,000 ha of land under irrigation
scheme constructed or rehabilitated
 220 livestock water points constructed
or rehabilitated
 3,200 drinking water systems
constructed or rehabilitated

21. IFAD’s active portfolio in the Arab region:
some results
 270,200 poor rural people in
strengthened community organisations
 32,000 poor rural people in savings and
credit groups
 23,500 poor rural people trained in
income generating activities
 20,500 poor rural people trained in post-
production, processing and marketing

22. IFAD’s active portfolio in the Arab region:
some results
 1,500 km of roads constructed
or rehabilitated

23. IFAD’s active portfolio in the Arab region:
some results
 1,400 savings and credit groups
formed and/or strengthened
 460 savings and credit groups with
women in leadership positions

24. IFAD’s active portfolio in the Arab region:
Partnerships (selected)
Cofinancing
 Islamic Development Bank
 OPEC Fund for International Development
 World Bank
 Arab Fund for Economic and Social Development
 Global Environmental Facility
 borrowing/recipient Governments
 private sector such as commercial banks and investors
 beneficiaries
Knowledge
 UN Economic and Social Commission for Western Asia
 International Center for Agriculture Research in Dry Areas
 International Center for Biosaline Agriculture
 International Food Policy Research Institute
 Food and Agriculture Organisation
 National agriculture research institutes

25. Thank you