Norway and IFAD Deepen Partnership to Boost Rural Investment, Food Security and Global Stability

Norway and the International Fund for Agricultural Development (IFAD) have reaffirmed their strategic partnership, pledging to scale up investments in rural communities as a cornerstone of global food security, economic inclusion, and stability.

The commitment was formalised following high-level talks in Oslo between Åsmund Grøver Aukrust, Norway's Minister of International Development, and Alvaro Lario, President of IFAD, amid ongoing consultations for IFAD's next funding cycle.

Rural Investment Framed as a Global Stability Priority

Both sides stressed that investing in rural economies is not just a development goal, but a strategic necessity in a volatile global landscape.

"Rural development is not only a development priority, but also a strategic investment in stability and social cohesion," said Lario.

With 80% of the world's poorest people living in rural areas, the focus on agriculture and food systems is seen as critical to:

• Reducing poverty and inequality

• Preventing instability and forced migration

• Strengthening local and global food systems

IFAD14: A Key Financing Platform for 2028–2030

The discussions come as IFAD prepares its Fourteenth Replenishment (IFAD14), which will fund operations from 2028 to 2030.

The replenishment aims to:

• Expand investment in the "first mile" of food systems—the most underserved rural areas

• Reach communities typically excluded from mainstream financing

• Scale solutions that improve productivity, incomes, and resilience

IFAD positions this phase as a high-impact investment opportunity for development partners seeking measurable outcomes.

Strong Returns and a Proven Model

IFAD highlighted its track record of leveraging public funds into large-scale impact:

• Every $1 invested generates approximately $6 in total financing

• Over the past three years:

  • Participant incomes increased by over 30%

  • Similar gains were recorded in production and market access

These results reinforce IFAD's model of combining public investment with co-financing from governments, partners, and the private sector.

Private Sector Central to Scaling Impact

A major focus of the renewed partnership is mobilising private capital to drive rural transformation.

Key insights include:

• Projects with strong private sector involvement achieved 64% income gains

• This is four times higher than projects without such engagement

The IFAD14 framework will expand tools such as:

• Blended finance mechanisms

• Guarantees to reduce investment risk

• Partnerships with agribusiness and financial institutions

"We reaffirm the central role of the private sector across food systems," the joint statement emphasized.

Norway's Expanding Role

Norway remains one of IFAD's key contributors and has significantly increased its support:

• 170% rise in contributions since 2018

As Norway reforms its development cooperation strategy, IFAD14 is seen as a strategic vehicle to deliver targeted, high-impact investments.

Focus Areas for Future Collaboration

Norway and IFAD agreed to deepen cooperation in several priority areas:

• Improving conditions for responsible private investment in rural areas

• Mobilising additional financing for inclusive rural development

• Raising global awareness of food security challenges and solutions

Investing in the "First Mile" of Food Systems

The partnership highlights the importance of investing at the earliest stages of food systems, where:

• Smallholder farmers operate

• Infrastructure gaps are greatest

• Poverty levels are highest

By targeting this "first mile," IFAD aims to unlock long-term economic growth and resilience.

A Strategic Response to Global Challenges

With rising food insecurity, climate pressures, and geopolitical instability, both Norway and IFAD framed rural investment as a critical global priority.

The renewed partnership signals a broader shift toward integrated development financing, combining public resources, private capital, and policy reform to deliver sustainable outcomes.

As IFAD14 takes shape, the collaboration is expected to play a key role in scaling solutions that improve livelihoods, strengthen food systems, and promote global stability.