September 2011

IFC’s Approach in Agriculture is Part of Integrated World Bank
Group Action Plan
World Development Report
2008
Differentiated approaches for:
WBG Agriculture Action Plan
FY 10-12
Five areas of joint focus:
A.
Agriculture based countries
(mainly SSA and Asia): GDP growth through agriculture
1.
Raise agricultural productivity
B.
Transforming countries (e.g.,
China, India, Indonesia,
Morocco): Higher value products and linkages with the non-farm economy
2.
3.
Link farmers to markets and strengthen value chains
Reduce risk and vulnerability
C.
Urbanized countries (e.g.,
Brazil, Ukraine, Russia):
Contribution to global food supply, reduced rural poverty, growth in export crops and increased food safety
4.
Facilitate agricultural entry
5.
and exit and rural non-farm income
Enhance environmental services and sustainability
SOURCE: World Development Report 2008: Agriculture for Development; World Bank Group Agriculture Action Plan FY10-12
• Key Elements of the IFC
Global
Agribusiness
Strategic
Action Plan
(ASAP)
• IFC ASAP a
Collaborative
WB-IFC Effort with full integration of
WB and IFC
Agribusiness
Teams
1

Development Impact
• IFC investments made directly in the agricultural sector during FY11 are expected to:
• provide direct employment to 150,000 people, including 60,000 women,
• reach 870,000 farmers (equivalent to 4.4 million people supported)
• Reach about 90,000 micro, small, and medium enterprises.
• IFC Development Goal Targets:
• FY11: 200,000 farmers reached
• FY14: 800,000 farmers reached
2
1,5
1
0,5
0
4,5
4
3,5
3
2,5
IFC's Commitments in Agribusiness,
US$ Billions
Target
IFC'S AGRIBUSINESS PORTFOLIO BY SECTOR
US$4.5 bln
Food Retail
Financial 10%
Fertilizers
11%
Markets
6%
Agri
Infrastructure
4%
IFC'S AGRIBUSINESS PORTFOLIO BY REGION
US$4.5 bln
South Asia
9%
Africa
9%
Middle
East/North
Africa
20%
East Asia
13%
Agri
Production and
Processing
69%
Latin America
26%
Europe and
Central Asia
23%
2

IFC’s Strategic Objectives in Agriculture
 Contribute to Enhancing Food Security (e.g. increased investment, enhanced productivity)
 Contribute to Enhancing Economic Development and Inclusiveness (e.g. focus on smallholders, women, risk management)
 Make Environmental and Social Sustainability a business driver (e.g., resource utilization and efficiency)
3

Areas of Focus
 Enhance productivity through improved access to key agricultural inputs, dissemination of best practices, investment in modern and sustainable farming
 Help mitigate price and weather-related shocks through developing and rolling out risk management products
 Support agri SMEs access to finance, access to market and access to technology and inputs through agricultural and financial intermediaries and service providers
 Reduce post harvest waste and losses through improved agricultural practices, logistics and infrastructure
4

Integrated Agribusiness Value Chain Approach
Investment Climate
Infrastructure, PPPs
Input producers and distributors
Farmers Traders
Food
Processors
Distributors
Financial/Risk Management Products
Advisory/Technical Assistance
Environmental and Social Ecosystem Services
Retailers
Consumers
6+ billion
5

Enhanced IFC Environmental and Social Framework and Tools
6

Revised Performance Standards & Procedures
 Introduced requirement to reduce energy/water intensity
 Lowered GHG threshold for reporting to 25,000 tons CO2 equivalent per year
 Increased attention to supply chain (labor and critical habitats)
 Adopted Free Prior Informed Consent for Indigenous Peoples
 Changes to Categorization System (both real sector and FIs)
 Adopted new regime of information disclosure throughout the project cycle, including ESAP's implementation progress and DOTS.
7

Early E&S Risk Assessment and Screening Tool
Country-level
 National policy (international conventions, agricultural policy)
 Legal framework/Enforcement (labor law, environmental regs, land rights/tenure)
 Physical and human infrastructure (transport, health, education)
Sector/Project-level
 Workforce (wages, working conditions, sub-contractor suppliers)
 Client reputation
 Land ownership/tenure/disputes
 Current and previous land use (no primary forest conversion)
 Environmental assets/services (biodiversity, water, etc)
8

9