The International Fund for Agricultural Development (IFAD) has issued its first nutrition bond, under its Sustainable Development Finance Framework, to provide $50 million in financing to Zenkyoren, a National Mutual Insurance Federation of Agricultural Cooperatives (Japan).
The bond agreement will see the funds used to support IFAD’s rural development programmes, with the aim of improving food security and nutrition for millions of rural people in developing countries. The investment is expected to contribute to achieving the 2030 Sustainable Development Goals.
The funds will be utilised to provide insurance protection for small-scale farmers and cooperatives in rural areas, thereby contributing to more inclusive and sustainable agriculture practices and food systems resilience.
Zenkyoren was established in 1951 as an insurance organization to insure members of the farming community in Japan. The organization has grown significantly in recent years, with Zenkyoren’s membership reaching 10 million people. The group plays a leading role in providing insurance coverage and services to farmers and cooperatives in rural communities, as well as promoting sustainable agriculture practices and food systems resilience.
IFAD is committed to promoting inclusive and sustainable agriculture and food systems resilience. The Fund’s work supports rural communities and small-scale farmers in more than 90 countries, with a focus on improving food security and nutrition and building resilience to climatic or economic shocks. IFAD is working with a wide range of partners, including governments, cooperatives, and private sector stakeholders, to achieve its vision of a world free from hunger and malnutrition.