Support to Investment

It is estimated that by 2050 the world will need 60 percent more food than is available today. Policies to address food security and eradicate hunger will require massive investment in agriculture and rural economies.

Strengthen the links between policy and investment.

Since 1964, FAO has helped mobilize over USD 120 billion in agricultural investment. To achieve this, FAO works in partnership with governments and over 30 financing institutions and banks.

FAO supports governments by providing technical advice, economic analysis, public-private dialogue and capacity building to improve investments. This work promotes sustainable agriculture, rural development, food security and improved nutrition.

Through the Committee on World Food Security, FAO has brokered international guidelines to ensure that large foreign and domestic investment benefits local communities and respects tenure rights. FAO emphasizes the importance of small-scale producer’s investment and advocates for social protection and improving rural infrastructure as well as providing incentives to invest.

Key policy messages

· Investing in agriculture is one of the most effective ways to reduce hunger and rural poverty. Agriculture and rural development policy frameworks must attract investment in order to turn policy goals into practice.

· Agriculture and nutrition policies and investments must be coordinated and aligned across government ministries. This includes not only the ministry of agriculture but also those for economic planning, trade, education, social affairs, health, energy and rural electrification, transport and the environment.

· A large share of investment in agriculture is made by farmers and small-scale producers. Government and donor policies must support these groups by addressing barriers to savings and investment; facilitating access to technology, markets and financial services; strengthening equitable land tenure; improving rural infrastructure and public services; and reducing vulnerability to risks.

· Secure tenure rights are essential to attract and guarantee investment. Policy-makers and investors should adopt the guidance and good practices in the Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI) and the Voluntary Guidelines for the Responsible Governance of Tenure (VGGT).

· Investing in sustainable food security, nutrition, agriculture and rural development is essential to achieve the 2030 Agenda for Sustainable Development. The Addis Ababa Action Agenda (AAAA), agreed in July 2015 at the Financing for Development Conference, provides the financial framework to fulfill this Agenda. The Rome-based agencies (FAO, IFAD and WFP) have estimated that additional resources of USD 265 billion per year during 2016-2030 (i.e. 0.3% of the average projected world income for that period) are required to fund further investment in social protection and pro-poor investment in productive activities.