Investing in Agrifood Systems: IFAD’s Federica Diamanti in conversation with the Donor Platform

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GDPRD/Michelle Tang: Why is it important to focus on financing agrifood systems now? Why should the international community pay attention, given that every sector is as important as the next? 

IFAD/Federica Diamanti: The agrifood system extends far beyond agricultural production. It encompasses all activities and actors involved in bringing food from farm to table, spanning the entire value chain—from production and processing to distribution and consumption. Adequate infrastructure is essential; without it, food cannot be efficiently produced, transported, or accessed. Moreover, the agrifood system is deeply interconnected with climate resilience and adaptation, as well as nutrition and food security.

Investing in agrifood systems today is a strategic choice for governments and investors. Evidence from the World Bank and IFAD shows that every dollar invested in resilient food systems generates two to four dollars in economic and social returns — in jobs, health, reduced losses, and climate stability. The challenges are real — fiscal constraints, political uncertainty and climate shocks — but the opportunities are greater: resilient food systems, inclusive growth and trillions in investable potential. This is a strategic investment. It is about standardizing data, mitigating risks and building platforms where public and private capital can flow together.

In 2025, with the 4^th International Conference on Financing for Development (FfD4) and the UN Food Systems Summit +4 Stocktake, agrifood systems have become more prominent. Even more recently, at the IMF-World Bank Annual Meetings, agriculture took centre stage with the launch of Mission AgriConnect, which IFAD, among other partners, joined with strong commitment. Through this partnership, led by The World Bank Group, we have pledged to improve the livelihoods of at least 70 million small-scale food producers by 2030.

The Global Donor Platform for Rural Development has also played an important role in raising visibility and strengthen the case for addressing root causes across the entire investment chain. IFAD stands ready to partner — bridging donors, investors and communities — so that food systems become the next frontier of sustainable investment. IFAD’s fourteenth replenishment (IFAD14) will build on this momentum with an integrated investment framework focused on rural people and centred around food security, economic growth and resilience. Through IFAD14, we aim to align financing and partnerships in ways that expand reach and scale, ensuring that resources flow where they are most needed.

Michelle: Recent global events have featured discussions around the reform of official development assistance (ODA) and the international financial architecture. What key messages would you like to convey on these areas?

Federica: ODA alone can no longer meet today’s development challenges. We need innovative financing approaches that unlock investment and bring in the private sector to the table at a scale that have not happened so far. In this context, grants should play a catalytic role: the traditional model of funding standalone projects can no longer work, we need to crowd in private finance, and the private sector must be meaningfully engaged from the outset.

The private sector will only engage when the investment makes financial sense. That means that we need to create conditions that attracts investors, supported by reliable data to allow them to assess risk accurately. Too often, perceived risks are driven by misperceptions.

There is significant work to do on blending finance, innovative financial instruments, and ensuring a conducive regulatory environment, including standardized contracts and effective enforcement. When donors, investors, governments and rural communities align, food systems transformation becomes not only possible but truly investable. The private sector needs a space in which it feels comfortable stepping in. Of course, in many low-income and in fragile contexts, concessional finance is still indispensable. Institutions such as IFAD play a critical role in reaching the most remote and vulnerable populations. For this reason, donor support must remain central to the international financial architecture.

Michelle: As Co-Chair of the Donor Platform's High-Level Advisory Group, what makes the group meaningful in your view? What are your reflections on the development and contributions of the group-led White Paper “Financing Agrifood Systems for People, Planet and Prosperity”, including how the donor community should act on the recommended action areas?

Federica: The strength of the Donor Platform is that it offers a trusted space with no vested interests. The dialogue is genuine, and the White Paper gave us a collective voice to advocate for agrifood systems. It grew out of internal negotiations around what should be included, making it a true product of the Platform and it now serves as a reference point for participants in global agendas, to make our voice, and the voice of rural and agrifood systems, louder and clearer.

The Paper contains concrete recommendations for how the system can act together, and the Platform itself shows how coordination across the system can happen and make an impact.

Michelle: In these fast-changing times, what value does the Donor Platform’s informal donor-to-donor space provide?

Federica: The Donor Platform is especially valuable because it provides a safe space to discuss which messages are most convincing, which investments have delivered the greatest impact, and how we can achieve better results with fewer resources. Members can share information openly and informally to explore alignment in other negotiations.

For example, IFAD’s next replenishment process begins next year. The Platform offers a space where members can informally shape discussions by exploring priorities, expectations and what IFAD can realistically deliver in the current environment.

Michelle: What is one takeaway you would like readers to have? Any final thoughts for those involved in agrifood systems?

Federica: Investing in agrifood systems is investing in prosperity, climate resilience, and stability. It is one of the most powerful tools we have — and we must scale it now.

Investing in rural development generates a double dividend: it feeds families while driving broader economic stability and growth, particularly for young people and vulnerable rural communities. Despite its potential, the agrifood system still has not received the level of investment it needs. The estimated global requirement of 300 to 350 billion dollars per year is within reach, yet external development finance alone is not enough.

We must bring in the private sector while continuing to position agrifood transformation as one of the major transitions needed for a peaceful and prosperous world.

Interview conducted by Michelle Tang, Secretariat of the Global Donor Platform for Rural Development (GDPRD) on 7 October 2025.