The International Fund for Agricultural Development (IFAD) and the World Bank Group have signed a new Co-Financing Framework Agreement aimed at expanding joint investment in rural economies, strengthening food systems and creating employment opportunities for rural communities.

The agreement was signed during the 2026 IMF–World Bank Group Annual Meetings in Bangkok, Thailand. It establishes a framework for closer collaboration between the two international development institutions as they work to address challenges affecting rural livelihoods, agricultural productivity and food security.

The partnership is intended to help mobilise financing for development initiatives that strengthen rural resilience, expand economic opportunities and improve the ability of communities to withstand economic and environmental shocks.

Joint Investment to Transform Rural Economies

Rural economies play a central role in food production, employment and economic development, particularly in countries where agriculture supports a large share of the population. However, smallholder farmers and rural businesses frequently face difficulties accessing finance, reliable water supplies, modern technology and markets.

Through the new framework, IFAD and the World Bank Group aim to strengthen coordination around investments that address these challenges. Closer cooperation can help align financial resources, technical expertise and development programmes to support projects with benefits for farmers and rural communities.

The institutions expect their partnership to contribute to stronger agricultural systems, improved livelihoods and expanded employment opportunities.

AgriConnect Targets 300 Million Smallholder Farmers

The agreement builds on existing collaborative initiatives, including AgriConnect, which aims to help transform agriculture for 300 million smallholder farmers by 2030.

Smallholder farmers are essential to food production in many developing economies, but they often face barriers that limit productivity and income growth. These can include limited access to agricultural financing, improved seeds, irrigation, equipment, storage facilities and reliable routes to market.

Efforts to transform agricultural systems can help farmers improve productivity, strengthen their commercial opportunities and become more resilient to climate-related risks. Achieving these objectives will require investment, effective implementation and coordination among governments, financial institutions and agricultural communities.

Water Security Through WaterForward

The partnership also builds on WaterForward, an initiative that seeks to improve water security for one billion people by 2030.

Reliable access to water is essential for agricultural production, household needs and rural economic activity. Water shortages and unreliable supplies can threaten harvests, reduce incomes and increase vulnerability to droughts and other environmental pressures.

Investments in water infrastructure, efficient water management and more resilient systems can help communities manage these challenges. Better water security can also support agricultural development and improve the long-term sustainability of rural livelihoods.

Creating Jobs and Strengthening Food Security

IFAD President Alvaro Lario highlighted the importance of combining the institutions’ financial reach and technical expertise to deliver greater development impact. He said the agreement would help translate shared ambitions into increased investment, more jobs, stronger resilience and improved food security for millions of people.

The framework reflects a broader effort to improve coordination in international development financing. By working together, IFAD and the World Bank Group aim to support rural communities through investments that address interconnected challenges involving agriculture, water, employment and economic opportunity.

The agreement’s ultimate impact will depend on how projects are selected, financed and implemented, as well as the extent to which benefits reach smallholder farmers and underserved rural populations.

With its focus on rural investment and stronger food systems, the partnership seeks to support more productive, resilient and inclusive rural economies while contributing to wider sustainable development goals.