IFAD and Bank Al Maghrib Partner to Boost Global Rural Food Security

In a robust affirmation of their shared vision for sustainable rural development, the International Fund for Agricultural Development (IFAD) and Bank Al Maghrib—the central bank of Morocco—have expanded their financial collaboration for a second time. This renewed alliance marks another significant step in scaling up global investment toward food security and poverty reduction in rural areas.

On May 14, 2025, IFAD announced the issuance of its 11th sustainable bond, structured as a private placement under its Sustainable Development Finance Framework. Valued at US$150 million and set with a 10-year tenor, the bond was purchased by Bank Al Maghrib and will directly support IFAD’s funding initiatives for 2025. This milestone builds on a prior transaction in July 2024, where the Moroccan central bank invested EUR100 million, signaling the beginning of IFAD’s 2025 fundraising cycle.

“Having the Bank Al Maghrib as a repeat investor makes us particularly proud,” said Natalia Toschi, Head of Funding at IFAD. “It shows the value of long-term relationships for IFAD’s global mission that is more than ever important to build a better and more stable world. This is even more valuable in times of global uncertainty, where markets surprise us every day. The Bank applies a Corporate Social Responsibility Policy that is aligned with IFAD’s values.”

The newly raised funds will bolster IFAD’s ability to implement transformative rural development projects worldwide. These efforts are aimed at making rural areas more productive, self-sustaining, and resilient—especially in the face of climate change and persistent poverty. Key priorities include expanding access to financial services, improving infrastructure, promoting sustainable agriculture, and empowering marginalized populations, particularly women and youth.

A Growing and Strategic Partnership

This bond issuance represents a continuation of a strategic partnership rooted in decades of cooperation between IFAD and the Kingdom of Morocco. According to Donal Brown, Associate Vice-President of IFAD's Department for Country Operations, “This renewed collaboration builds on IFAD’s longstanding relationship with Morocco, a cornerstone of its portfolio for over four decades. Morocco stands out not only for the scale of its engagement but also for its visionary leadership in rural development, climate resilience and agricultural transformation.”

Since 1979, the partnership has mobilized over US$1.7 billion through 16 major development projects, improving the livelihoods of more than 700,000 rural households across Morocco. The current project portfolio, valued at US$250 million, is aligned with Morocco’s ambitious “Génération Green 2020–2030” initiative. The program focuses on food sovereignty, youth employment, and environmental sustainability, with special attention to underserved mountainous regions and rural women.

Tackling a Global Challenge with Local Commitment

Today, approximately 3 billion people reside in the rural areas of developing nations. These regions, though vital to global food production—providing at least one-third of the world’s food—remain among the most impoverished and vulnerable. A staggering 80% of the world’s poorest individuals live in rural areas, many of whom are smallholder farmers who often face hunger and marginalization. Globally, 730 million people are hungry, equating to one in every eleven individuals.

IFAD’s sustainable bonds and targeted investments play a crucial role in reversing these trends. By mobilizing capital toward rural development, the organization addresses the root causes of hunger and poverty. Furthermore, these investments yield triple dividends—economic, social, and environmental—while directly contributing to the achievement of the United Nations Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty) and SDG 2 (Zero Hunger).

Conclusion: Resilience Through Partnership

As global uncertainties—from climate change to geopolitical instability—continue to place strain on food systems and development financing, partnerships like that of IFAD and Bank Al Maghrib are more important than ever. This bond issuance is not just a financial transaction—it is a powerful testament to the shared commitment to inclusive, sustainable development that uplifts rural communities worldwide.

Through long-term collaboration and visionary leadership, IFAD and Morocco are setting a benchmark for how public institutions can work together to generate lasting global impact where it is most needed.