This complements the AA+ Fitch rating that IFAD received on 2 October, when IFAD became the first fund in the United Nations system to receive a public credit rating.
Gilbert F. Houngbo, President of IFAD said:
As hunger grows in rural areas, the demand for our services is greater than ever and we need to broaden our investor base as much as possible.
With two positive ratings, we can mobilize more funds from various potential investors at a favourable cost. And this means we can do more to increase the incomes and food supply of the poor rural people who desperately need it. This is a prerequisite for building global stability and resilience.
As the leading global development organization dedicated exclusively to eradicating poverty and hunger in rural areas, IFAD plays a critical role in achieving the Sustainable Development Goals (SDGs) by 2030.
IFAD-supported projects and programmes are currently funded through contributions from its 177 Member States, investment income and reflows, as well as cofinancing from other sources.
Due to the COVID-19 pandemic, there could be up to 132 million more hungry people in 2020 alone, and extreme poverty looks set to increase for the first time in decades.
With only 10 years left to achieve the SDGs, there is an urgent need to increase investment in the rural areas where most of the world’s extremely poor and hungry people live, and where IFAD focuses its activities.
IFAD is currently advocating for greater funding commitments from its Member States for its Twelfth Replenishment period (2022–2024).
Increased investments to IFAD by 2030 could help:
- Increase the production of 201 million small-scale producers
- Improve the resilience of 111 million project participants
- Raise the incomes of 264 million rural women and men by at least 20 percent
(Source: IFAD Press release)