Globally rising demand for food / KfW contributes significantly to food security and rural poverty reduction

Frankfurt am Main (ots) -

- Innovative financing agreement amounting to EUR 400 million for
the International Fund for Agricultural Development (IFAD)
- Supporting small farmers, financing food production,
agricultural development and rural development

On behalf of the German Federal Ministry for Economic Cooperation
and Development (BMZ), KfW Development Bank has signed a framework
agreement with the International Fund for Agricultural Development
(IFAD) totaling EUR 400 million and - as part of the agreement - a
first promotional loan over EUR 100 million. The objective of IFAD,
an international financial institution and a specialized United
Nations agency headquartered in Rome, is to improve food security and
rural livelihoods in developing countries. IFAD will use the KfW
funds for rural investment in middle income countries; they will
facilitate an increase in agricultural production, especially through
better production technology in crop farming and livestock husbandry
as well as modern, water-saving irrigation systems. The funds will
further support small farmers in marketing their produce and securing
land use rights; they shall also serve to establish rural financing
systems. The.KfW funds will assist IFAD's work to support poor rural
women and men reach food security worldwide.

"The globally rising demand for food will double in the next 50
years. This is why a massive expansion in agricultural investments is
required. Our promotional loan supports IFAD's continued development
work especially in rural regions of the emerging countries, where
poverty is prevalent. At the same time, grants and concessional funds
can be concentrated on the poorest countries, particularly in Africa.
IFAD was created to invest in, work with and empower rural people,
the majority of whom depend on agriculture for their livelihoods.
Therefore small farmers are always in the focus of both IFAD's and
KfW's agricultural development engagements, with the aim of securing
food and reducing poverty", said Dr Norbert Kloppenburg, Member of
the Executive Board of KfW Group.

"The world's 500 million small farms provide food and livelihoods
for billions of people, accounting for up to 80 per cent of food
produced in sub-Saharan Africa and parts of Asia," said IFAD
President Kanayo F. Nwanze. "Small farms are not just here to stay,
their numbers are increasing and demand for the kind of projects IFAD
supports is also growing. Our partnership with KfW means that we can
leverage additional resources for our continued innovative approaches
in remote areas where few others venture. Partnerships like this one
are essential to transforming rural areas into vibrant places where
women and men can thrive.

Further information on KfW Development Bank can be found at:
www.kfw-entwicklungsbank.de.

Find out more about IFAD:

IFAD invests in rural people, empowering them to reduce poverty,
increase food security, improve nutrition and strengthen resilience.
Since 1978, we have provided about US$15.8 billion in grants and
low-interest loans to projects that have reached some 430 million
people. IFAD is an international financial institution and a
specialized United Nations agency based in Rome - the UN's food and
agriculture hub. www.ifad.org

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Dr. Charis Pöthig,
Tel. +49 (0)69 7431 4683, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de