DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND ELEVENTH MEETING WASHINGTON, DC – APRIL 24, 2025 DC/S/2025-0013 April 24, 2025 Statement by Mr. Qu Dongyu Director-General Food and Agriculture Organization of the United Nations Statement by Mr. Qu Dongyu Director General Food and Agriculture Organization of the United Nations 111th Meeting of the Development Committee April 24, 2025 Washington, DC The State of Food Security and Nutrition in the World (SOFI) 2024 report indicates that in 2023, an estimated 28.9 percent of the global population did not have regular access to adequate food. In addition, between 713 and 757 million people may have experienced hunger in 2023, representing approximately one in every 11 people globally. This figure increases to one in every five people in Africa, which is also the continent with the largest proportion of the population facing hunger, estimated at 20.4 percent. According to the SOFI report, Africa is projected to surpass Asia as the continent with the largest number of hungry people. This shift is driven also by rapid population growth in the region, which compounds existing challenges such as extreme weather events, conflict, and economic instability. As the global population continues to rise, the challenge of nourishing it grows even more urgent. According to the World Bank 1, this demographic shift also means that approximately 1.2 billion young people will enter the workforce in developing countries over the next decade, with 800 million potentially facing a lack of clear pathways to meaningful employment. Among those who manage to secure employment, few will have access to quality jobs that offer decent wages, financial stability, job security and opportunities for growth. Creating more and better-paying jobs will be crucial for reduction of poverty and hunger. The mandate of the Food and Agriculture Organization of the United Nations (FAO) highlights the critical role that agrifood systems play a key role in absorbing this growing labor force, improving food security and access to healthy diets, enhancing livelihoods in rural areas and driving inclusive economic growth. This year marks FAO’s 80th anniversary, a milestone that invites us to reflect on our rich history and the progress we have made in eradication of hunger and malnutrition. As we look ahead, we are committed to amplifying the role of agrifood systems and the significant impact they are poised to have as a cornerstone for global development. Agrifood systems represent the world’s largest labor sector, employing approximately 1.3 billion people, or 39.2% of the global workforce, with an even larger proportion in many developing countries. Africa leads with 64.5% of employment in agrifood systems, followed by Asia with 41.5%, while other regions reflect more diversified economies with lower reliance on employment in this sector (FAO2). In order to fully unlock this potential, we need to accelerate the transformation to more efficient, inclusive, resilient and sustainable agrifood systems for better production, better nutrition, a better environment, and 1 Growth and Jobs Overview 2 FAO adds to data coverage of employment in agrifood systems a better life. Ultimately, this transformation is about ensuring access to healthy diets for a growing population, generating rural employment with a focus on women and youth, fostering inclusive economic growth, and driving sustainable development, for the wellbeing of all on this planet. Natural and man-made disasters, resource scarcity, geopolitical tensions, limited access to land, finance, and market, technology and infrastructure gaps are only some of the major challenges impacting the sector and small-scale agriculture, particularly in developing countries. In Sub- Saharan Africa for example, although the region has seen notable agricultural growth, this remains largely driven by land expansion rather than improvements in productivity (GAP initiative 2024). The future of agrifood systems hinges on our ability to create meaningful jobs that respond to evolving skills demands, rapid technological shifts, and demographic trends. Increased and targeted investment in agrifood systems offer the potential to create jobs, particularly in countries with large, young populations (Townsend et al., 2017; Tschirley et al., 2015; Yeboah and Jayne, 2018). Governments, the private sector and development partners need to design policies and investment programmes to drive growth, while creating more and better jobs (Christiaensen et al., 2021). The scale of investment required to transform the world’s agrifood systems is substantial, with an estimated need of trillions of USD to meet global food security and nutrition goals by 2030 (SOFI 2024). However, many developing countries are facing limited fiscal space and macroeconomic challenges, with total global public debt expected to exceed 100 per cent of GDP by 2030 (IMF 2024). Going forward, it will be crucial to enhance the quality of public spending, ensuring that investments are directed towards high-impact areas such as agricultural productivity, infrastructure, and to prepare for extreme weather events. Furthermore, traditional forms of finance and development aid alone are insufficient to meet the scale of the challenge. Public finance must play a catalytic role in leveraging greater volumes of responsible private investment, which are part of the solutions to bridge this financing gap. The private sector – ranging from large corporations to smallholder farmers and agri-Small and Medium Enterprises, often lacks the enabling environment needed to thrive. Structural barriers, limited access to finance, inadequate infrastructure, and regulatory constraints, inadequate capacity continue to hinder their potential, however numerous pathways exist to overcome these challenges, and FAO has been pioneering many innovative approaches. Through its Investment Centre, recently transformed to become even more fit-for purpose, FAO has scaled up agrifood investment and finance solutions to support its Members. With strategic public and private investment planning and policy as well as innovative financing along with knowledge and capacity development for investment. Additionally, annual forums such the Global Youth Forum, the Science and Innovation Forum, and the Hand-in-Hand Initiative Investment Forum, all integral components of the broader Work Food Forum initiative led by FAO, highlight numerous innovative ways that policy, science, technology, innovation and investment can transform global agrifood systems. First of all, knowledge is a powerful tool to de-risk investment. Providing evidence-based analysis, data and strategic guidance, as well as capacity building, help countries and investors in making informed investment and finance decisions. Second, innovating finance strategies, instruments and mechanisms can be pivotal in channeling more public and private resources to fund the massive investments needed to make agrifood systems more productive and sustainable. These solutions include new financial products, risk mitigation mechanisms, the use of technology and innovative partnership approaches to financing. 2 Some examples are impact investing, fintech, risk-insurance, and blended finance, that leverage the strengths and resources of different stakeholders to deliver sustainable development outcomes. Currently, the private capital leveraged by blended finance for agrifood investments amounts to only USD240 million a year. This number must grow. Innovative solutions can also help fill the financing gap that continues to hinder farmers and agri-Small and Medium Enterprises (agri-SMEs). In Sub-Saharan Africa, it is estimated that three out of four agri-SMEs struggle with inadequate access to finance, limiting their ability to grow at scale (Aceli 2020). Lastly, partnerships, bringing together diverse expertise, resources and shared commitments can contribute to a more supportive environment for investments. FAO is eager to continue working with the World Bank and the International Monetary Fund (IMF), as well as many other International Financing Institutions, knowledge partners and investors to help our Members in achieving food security and nutrition, zero poverty, economic growth and jobs creations, building a brighter future together. Together, we will work to ensure that no one is left behind, paving the way for a more prosperous, sustainable, and food-secure world. 3