Gulf Today, Jul 31, 2022 | Muharram 02, 1444
IsDB announces a $10.54 billion package for global food security
The Islamic Development Bank (IsDB) Group endorsed a $10.54 billion
comprehensive Food Security Response programme (FSRP) package that will support
member countries in addressing the ongoing food crisis and, most importantly,
scale up the Group’s continued efforts to contribute to strengthening its
members’ resilience to food security shocks in the future.
The package was approved during an extraordinary joint meeting of the IsDB Board
of Executive Directors, the Board of Directors of the Islamic Solidarity Fund
for Development (ISFD), and the Board of Directors of the Islamic Corporation
for the Insurance of Investment and Export Credit (ICIEC).
As part of the IsDB Group comprehensive package, the IsDB will contribute up to
$5.7 billion in total financing to member countries, comprising new approvals
worth $4.0 billion and fast-tracking of disbursements for existing projects
worth $1.7 billion. In addition, as part of its “One Group-One Goal” approach,
the programme involves significant and direct contributions by IsDB Group
entities as follows: (i) International Islamic Trade Finance Corporation (ITFC):
$4.5 billion in trade financing; (ii) Islamic Corporation for the Development of
the Private Sector ( ICD): $269 million in private sector development
operations; (iii) ISFD: $75 million in loans, grants, and capital resources; and
(iv) ICIEC: $500 million in political and credit insurance coverage. To
complement the financial package of the IsDB Group, the Islamic Development Bank
Institute (IsDBi) will provide critical data, analytics, and evidence-based
support for effective and impactful decision-making.
To jump-start the programme, the financing package is expected to provide
immediate financing of up to $3.2 billion (over the coming 18-month period) for
short-term interventions by providing (i) emergency food and agricultural supply
and (ii) social protection and livelihood support to the most vulnerable
populations.
The primary focus of the programme and the bulk of the financing envelope of the
remaining $7.3 billion, which will span over the next three years, will be on
developing innovative medium- and long-term interventions to address structural
weaknesses and root causes of food insecurity in the member states.
These include low productivity, rural poverty, climate change, and weak
resilience of regional and national agricultural and food systems through six
(6) key initiatives: (i) building agricultural resilience to climate change;
(ii) food and input value-chains; (iii) smallholders’ productivity and market
access; (iv) rural livelihood support; (v) livestock and fisheries development;
and (vi) building resilient food supply systems.
The total IsDB Group’s financing support for agriculture and food security
currently stands at $20.6 billion, comprising 1,538 operations.
Separately, during its second meeting for 2022 on Thursday, the Emirates Food
Security Council (EFSC) discussed the latest global developments in the
agricultural sector, in addition to food availability locally and the Food and
Agriculture Organization of the United Nations (FAO) Food Price Index (FFPI),
with relevant federal and local authorities.
The Council members addressed several vital issues related to local and global
food security challenges. They also examined recommendations of the National
Committee for Developing Local Production and Technology, explored the current
state of food prices locally and mechanisms for regulating them, and reviewed
the National Nutrition Strategy.
Mariam Bint Mohammed Almheiri, Minister of Climate Change and Environment and
Chair of EFSC, emphasised that the UAE prioritizes food security, and places
great importance on reinforcing its capabilities to address the challenges
created by global developments that impact the stability of food supply chains
and food availability worldwide.
She said: “Enhancing food security primarily relies on understanding its unique
nature, as it is directly affected by changes in all sectors while influencing
other sectors in turn. Thus, addressing it demands an integrated and agile
ecosystem of cooperation and coordination across all relevant sectors,
authorities, and institutions. Creating such an ecosystem is the mandate of EFSC.”
She clarified that understanding pressing global challenges is the only way to
tackle them and reduce the risk of global food insecurity. That aim requires
urgent steps by everyone concerned to see food from a more inclusive
perspective, and to consider its role as a critical factor in achieving a major
shift towards a better future.
During their second meeting of this year, the Council members assessed the
latest developments in the agricultural sector worldwide through early
monitoring data on agricultural production, using reports produced by the
Agricultural Market Information System (AMIS) and FAO’s Food Outlook. AMIS
tracks the monthly production of several key commodities, including wheat, rice,
and other grains, legumes, and soy.
EFSC reviewed the outcomes of the FFPI, which records monthly variations in
global average prices across five basic food groups according to the volume of
consumption.
The meeting’s agenda also featured a comprehensive analysis of current food
prices locally, and a discussion on the pricing policy of basic consumer goods
and their monitoring and regulatory mechanisms.