September 5, 2023– During the Finance in Common 2023 Summit being held in Cartagena, Colombia, the Latin American Association of Development Financing Institutions (ALIDE) and the United Nations International Fund for Agricultural Development (IFAD) signed a letter of intent to collaborate in promoting agricultural and rural development in Latin America and the Caribbean.
The signature represented the commitment of the two institutions to support the formulation of regional, subregional, or specific strategies to fight rural poverty and permit the implementation of joint work plans, as well as the promotion of collaboration with other organizations and partners.
The agreement will also make it possible for IFAD and ALIDE to explore service networks to support the development of green finance, particularly through ALIDE’s participation in the Platform of Public Agricultural Development Banks led by IFAD, as well as IFAD’s incorporation as an Associate Member of ALIDE.
IFAD is a United Nations international financial institution that invests in the rural population by empowering it to reduce its poverty, enhance its food security, improve its nutrition and strengthen its resilience. Since 1978, the Fund has disbursed over 24,000 million U.S. dollars in subsidies and low-interest loans to finance projects in developing countries.
“ALIDE is a strategic ally of IFAD in the Latin American and Caribbean region in raising funds from Public Development Banks and in entering into alliances and joint efforts to raise the level of investment intended for the development of small rural producers,” stated IFAD President, Alvaro Lario.
The IFAD Regional Director for Latin America and the Caribbean, Rossana Polastri added that the fund “seeks to serve as a financial coupler for transforming food systems and thereby contribute towards reaching the Sustainable Development Goals,” and that at present it maintains close collaborative relations with Public Development Banks in the region, such as BNDES, FIRA, COFIDE and BANCOLDEX, among others, in an effort to create opportunities for investment, cofinancing and joint actions.
ALIDE, for its part, seeks to reinforce the role played by development financing institutions in the economic and social growth of the Latin American and Caribbean countries by promoting technical cooperation, innovation and good practices.
“This collaboration between ALIDE and IFAD constitutes an important milestone in our efforts to shore up rural development in Latin America and the Caribbean. Together, we are committed to the fight against rural poverty and the promotion of sustainable agri-food systems that will not only improve food security, but also contribute towards reaching the Sustainable Development Goals in the region,” stated ALIDE President, Luis Antonio Ramírez.
It should be emphasized that ALIDE and IFAD will strive to collaborate in promoting green finance and in supporting the development of resilient agri-food systems, two issues that are of vital importance to the sustainable development of the Latin American and Caribbean region.
ALIDE is the community of financial institutions that produce banking solutions for Latin American and Caribbean development. Founded in 1968, its main purpose is to contribute to the region’s economic and social development by promoting the use of good development finance practices among its members. It is comprised of more than 80 member institutions operating in over 20 countries of Latin America and other regions of the world.
This article was originally published by: ALIDE