Innovative and targeted approaches to development are increasingly in demand, as demonstrated by the growing participation in the Hand-in-Hand Investment Forum 2024. The forum commenced today in Rome during the World Food Forum, attracting a large global audience.
Expansion of the Hand-in-Hand Initiative
The Hand-in-Hand Initiative, launched by QU Dongyu, Director-General of the Food and Agriculture Organization (FAO), now includes 72 participating countries. The initiative continues to expand, underscoring the global commitment to sustainable agrifood systems.
- Key Numbers:
- 29 countries and five regional initiatives are participating in the 2024 forum.
- 115 high-impact agrifood investment cases will be showcased.
- Over 400 meetings between investors and stakeholders are scheduled.
- To date, the initiative has catalyzed more than $3 billion in prioritized agrifood investments. These cases have the potential to rise by six times that amount.
The Role of Finance and Investment
QU Dongyu, while opening the three-day event, emphasized the critical role of finance and investment in transforming agrifood systems. Such transformation is essential to sustainably providing food for all, now and in the future.
He also highlighted the success of the Hand-in-Hand Initiative in addressing financing gaps for Small Island Developing States (SIDS), least-developed countries, and regions experiencing food crises.
Partnership-Building Through the Investment Forum
The Hand-in-Hand Investment Forum serves as a platform to build partnerships by bringing together various stakeholders, including:
- Investors
- Multilateral development banks
- The private sector
- Development partners
- Foundations
- Impact funds
This forum facilitates direct presentations of agrifood investment opportunities by FAO Members, enabling stakeholders to engage in bilateral “matchmaking” meetings with ministers and senior officials. QU encouraged ministers to share lessons learned and emphasized the need for enabling policies to support the proposed investment cases.
FAO’s Territorial Approach to Agrifood Investment
The ongoing work under the Hand-in-Hand Initiative focuses on identifying better investments in agrifood systems using a territorial approach. This approach relies on:
- Granular biophysical and socio-economic data
- FAO’s geospatial toolkit to identify opportunities with the greatest potential to alleviate poverty and hunger
FAO assists countries in implementing policies to accelerate market-based transformations in agrifood systems, improving income, nutrition, and resilience to climate change.
2024 Investment Prospects and New Regional Initiatives
In 2023, 114 investment cases were presented, targeting $16.59 billion in investments and benefiting 155 million people. The average internal rate of return on these cases was 24.5%.
In 2024, the Hand-in-Hand Initiative expands further with three new regional initiatives focusing on:
- Small Island Developing States in the Caribbean
- The Amazonia region
- Southern Africa
These initiatives build on ongoing efforts in the Sahel and Central America’s Dry Corridor.
Climate-Smart Strategies for Agrifood Development
To achieve sustainable outcomes, climate-smart strategies are essential. FAO’s Environmental Externalities Accounting Tool (EX-ACT) helps track and estimate the impacts of agricultural interventions on greenhouse gas emissions. This tool assists policymakers and contributes to global financial support for sustainable agrifood systems.
Multiple-Choice Questions (MCQs):
- What is the Hand-in-Hand Initiative?
a) A scheme for healthcare development
b) A partnership program for climate research
c) An initiative launched by FAO for agrifood investments
d) A global education program
Answer: c) An initiative launched by FAO for agrifood investments - How many countries are part of the Hand-in-Hand Initiative as of 2024?
a) 29
b) 72
c) 50
d) 114
Answer: b) 72 - What was the total amount of investment cases presented in 2023 under the Hand-in-Hand Initiative?
a) $3 billion
b) $6 billion
c) $16.59 billion
d) $1 billion
Answer: c) $16.59 billion - Which of the following regions is a focus of the new regional initiatives under the Hand-in-Hand Initiative in 2024?
a) Southeast Asia
b) Southern Africa
c) Eastern Europe
d) Northern America
Answer: b) Southern Africa - What tool does FAO use to estimate the impacts of agricultural interventions on greenhouse gas emissions?
a) EX-ACT
b) GIS Mapping System
c) Eco-Tool
d) Agri-Finance Model
Answer: a) EX-ACT