Bridging the First Mile: Agricultural Investment in Africa and the Middle East
IFAD seeks to transform small-scale farmers into economic partners through strategic regional investment partnerships.
1The First Mile Challenge
The first mile represents the critical point where small-scale farmers operate before reaching larger markets. Significant gaps in financing, infrastructure, and technical knowledge often prevent these producers from capturing the true value of their crops. IFAD aims to bridge this divide by transforming farmers from aid recipients into active economic partners.
2Saudi Arabia Partnership Potential
IFAD is currently engaged in preliminary discussions with Saudi Arabia to deepen cooperation on agricultural investment. While an agreement exists with the Public Investment Fund, no joint projects have been implemented yet. The goal is to leverage Saudi expertise and capital to strengthen value chains and support sustainable rural development initiatives.
3Water Management in Egypt
In Egypt, the CROWN project is investing 153 million euros to improve water management across 30,000 feddans. IFAD contributes 63 million dollars to rehabilitate irrigation canals and upgrade systems with solar power. This initiative supports 90,000 households, helping them adapt to climate change while increasing agricultural productivity and overall farm income.
4Sustainability Beyond Funding
The true measure of success for agricultural projects is their longevity after external funding concludes. Initiatives like the SAIL project in Egypt have supported over 40,000 households by strengthening water user associations. These local institutions are essential for maintaining infrastructure and ensuring that skills remain within the community long-term.
5Desert Livelihood Support
In Egypt’s desert regions, the PRIDE project focuses on protecting households against unpredictable environmental conditions. By providing over 2,100 livelihood support packages, the project enables women to engage in livestock production and handicrafts. This diversification reduces dependence on single income sources, protecting families when rainfall declines or farming seasons fail.
6Resilience Amidst Conflict
In Sudan, solar-powered irrigation has allowed farmers to maintain production despite war and rising diesel costs. Investments in renewable energy and local institutions made before the conflict have proven vital for sustaining livelihoods. These communities have even provided refuge to displaced families, demonstrating the importance of building resilience before crises.
7Restoring Land in Yemen
Yemen’s agricultural sector faces severe damage from seasonal floods that strip away topsoil. Through the Crisis Response Initiative, local communities have constructed stone barriers and watershed structures to protect farmland. This work not only prevents further erosion but also restores previously lost land, enabling farmers to resume food production activities.
8Microfinance and Collective Trust
Access to formal banking remains difficult for smallholders, especially in conflict-affected areas like Sudan and Syria. Collective savings groups, such as Al-Wifaq, allow women to pool resources and secure microcredit. These community-based financing mechanisms demonstrate that trust and local organization can effectively bridge the rural financing gap without large banks.
9Leveraging Public Investment
IFAD manages a 2 billion dollar portfolio, where each dollar mobilized helps attract approximately six dollars in additional investment. The fund prioritizes infrastructure and credit lines to help producers expand their businesses. However, public investment remains a necessary precursor to attract private capital, as investors require basic infrastructure like roads.
10Efficiency and Innovation
Increasing output is insufficient if it depletes freshwater resources for future generations. IFAD advocates for systems that produce more with fewer resources through drought-tolerant crops and efficient irrigation. Technologies like artificial intelligence and early warning systems are being explored to predict crop risks and optimize resource management for small-scale farmers.
11Strategic Replenishment Priorities
As IFAD advances its 14th replenishment cycle, key priorities include building resilience to shocks and creating jobs for youth and women. The fund aims to increase private-sector involvement while ensuring that investment benefits reach the start of the supply chain. These efforts focus on creating lasting, scalable models for rural economic growth.
12Defining Future Success
The defining economic question for the region is whether communities can survive and continue producing tomorrow. Success is not just about current production levels but about the ability of farmers to withstand future crises. By fostering local institutions and market access, IFAD seeks to ensure that agricultural development remains truly sustainable.