ASIAN DEVELOPMENT BANK ANNUAL MEETING Session on Transforming Food Systems for the Future of Asia and the Pacific Panel 1: “Policies and Partnerships” Opening Remarks

Excellences,

Ladies and Gentlemen,

I am delighted to be with you today to reflect on a matter of global urgency and shared responsibility: the transformation of our agrifood systems to be more efficient, more inclusive, more resilient and more sustainable under the overarching guidance of the Four Betters, and to ensure a prosperous future and food security for generations to come. 

We are at a critical juncture. Around the world, we face complex and interconnected challenges that directly impact food availability, food accessibility, food affordability and food diversity for health security.

According to the FAO’s State of Food Security and Nutrition in the World report, one in every 11 people globally - about 733 million individuals - experienced hunger in 2023. Even more alarming is that more than one-third of the global population, approximately 2.8 billion people, could not afford a healthy diet in 2022.

The drivers of these challenges are well known: conflicts, economic disruptions, natural and man-made disasters, rising inequalities, and the growing frequency of climate-related shocks such as floods, droughts, and extreme weather events.

To address these challenges and turn them into opportunities for all, we must take bold and coordinated action for agrifood systems transformation.

This means rethinking how we produce, distribute, and consume foods. Essentially it means producing more with less.

To meet the needs of a growing global population and improvement of life standards, we have to significantly increase agricultural productivity.

Producing more with less is not just a slogan - it is a necessity solution.

It means using natural resources wisely, investing in innovation, improving infrastructure of agrifood systems and rural communities, and adopting cost-effective solutions.

One major challenge in this effort is the financing gap and smart investment with innovative business models.

Development banks, such as the Asian Development Bank, have a key role to play in mobilizing capital and aligning it with impactful, scalable projects.

Blended financing - where public funds are used strategically to increase the marginal utility and to attract private investment - can be a game changer.

FAO is actively working to create enabling environments that support this transformation.

The FAO Food Import Financing Facility (FIFF) launched during the Indonesia G20 Presidency in 2022, is highly recognized by the G20 and beyond as an emergency financial relief tool for low- and lower-middle-income countries affected by surges in food and key input costs, such as fertilizers and energy prices.

Now, one of our key initiatives, especially focusing on the most vulnerable, is the Financing Facility for Shock-Driven Food Crises. This global facility is designed to deliver rapid financing in anticipation of acute food insecurity, helping to prevent crises before they escalate, save lives, and making donor investments more effective.

The Facility, endorsed under the Italian G7 Presidency, is expected to be launched in the coming months and marks a major step forward in risk-informed and anticipatory action.

Our approach focuses on the hand-in-hand approach and through the FAO Hand-in-Hand Initiative, which I launched in 2019 as a FAO flagship initiative, focuses on accelerating agrifood systems transformation to move farmers out of hunger and poverty, especially in the most vulnerable countries.

The Hand-in-Hand Initiative prioritizes those facing the greatest food insecurity - low-income, landlocked, and Small Island Developing States (SIDS) - where capacity and investment are most needed.

The Initiative works toward improving the targeting of financing by supporting value chain development, agro-industrial growth, better water and land management, and the integration of digital and precision agriculture.

It is an example of how strategic, country-led partnerships can unlock opportunities and lift communities sustainably out of hunger and poverty.

Ladies and Gentlemen,

FAO has been working for over 60 years with financial institutions to de-risk investments, foster innovation, and scale up public and private financing for agriculture.

One of our most valued partners in this journey has been the World Bank and regional banks, especially those such as the Asian Development Bank and the African Development Bank, and others.

Our collaboration has produced tangible results.

For example, in Indonesia, the Productivity Enhancement for Tree Crops Project improved smallholder incomes through better services and sustainable farming practices.

In Bangladesh, the Northwest Crop Diversification Project enabled farmers to shift to higher-value crops and gain better access to markets.

Appreciating life-changing achievements financed by the ADB through support to FAO in Afghanistan. To date, the ADB has contributed USD 165 million towards implementation, with 5.6 million people (800 000 rural households) reached in all 34 provinces of Afghanistan with ongoing projects, with an additional USD 100 million currently under discussion.

These are powerful examples of how aligned investments can create real impact.

Today, I am pleased to announce that FAO and ADB are deepening this partnership with renewed commitment and a shared vision. Together, we are launching new joint work in three key areas:

One: Advancing digital and AI-powered agricultural solutions across 9 Central and South Asian countries to empower smallholders and build resilience.

Two: Conducting in-depth economic and financial analyses to support science-based and climate-smart investments in China, the Philippines, and Central Asia.

And Three: Strengthening policy dialogue and investment planning to encourage inclusive public-private partnerships in countries such as Bangladesh, Kyrgyzstan, Pakistan, Tajikistan and Uzbekistan.

This collaboration also aligns with our broader efforts, such as the Pacific SIDS Investment Programme under the umbrella of the Hand-in-Hand Initiative, to promote high-quality investments that transform agrifood systems across the Asia-Pacific region.

In conclusion, investment is the engine that will drive agrifood systems transformation.

By working together in an efficient, effective and coherent manner, and by harnessing the strengths of both public and private sectors, we can deliver on the Four Betters: better production, better nutrition, a better environment, and a better life – leaving no one behind.

Thank you.