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FAO advances a new agenda to mobilize investment in Latin America and the Caribbean’s agrifood systems

Ecuador

On August 18 and 19, the Food and Agriculture Organization of the United Nations (FAO) brought together 70 representatives of governments, regional integration mechanisms, international cooperation agencies, development banks, financial institutions, the private sector, and family farming organizations from Latin America and the Caribbean. The regional gathering identified the conditions, instruments, and partnerships needed to turn productive opportunities into concrete investments and scale up financing for agrifood systems.,

The region plays a strategic role in global food production while facing high exposure to climate risks. However, the financing available to its agrifood systems remains insufficient and fragmented given the scale of the challenges and opportunities.

“Latin America and the Caribbean is a global agrifood powerhouse, yet 32 million people still face hunger, and nearly 70% of those who produce food encounter barriers to accessing formal financing,” said Rene Orellana Halkyer, FAO Assistant Director-General and Regional Representative for Latin America and the Caribbean.

“We have both an opportunity and a shared responsibility: to turn the region’s agrifood potential into concrete investments that strengthen food security, climate resilience, and rural development opportunities,” he added.

For his part, Chilean Minister of Agriculture Jaime Campos Quiroga, who participated in the closing session, said: “In our view, financial solutions must take into account different scales of production, the particular characteristics of each territory, and the specific conditions farmers face every day.”

From financial inclusion to impact investment

During the two-day gathering, participants identified five priorities for strengthening the financing of agrifood systems in Latin America and the Caribbean. These included the need to move beyond isolated projects and develop territorial investment portfolios that connect production, value chains, infrastructure, connectivity, technical services, markets, evidence, and financial instruments tailored to the characteristics of each territory.

The gathering also underscored the importance of investing in human and organizational capacities in rural areas through financial education, technical assistance, business management, and collective action. Participants also emphasized the need to consolidate collaborative ecosystems involving governments, development banks, financial institutions, cooperatives, companies, investors, academia, international cooperation agencies, and territorial organizations.

Another priority was to place climate action at the center of investment decisions by translating environmental commitments into bankable portfolios that promote sustainable production practices, restore ecosystems, develop resilient infrastructure, improve water management, and expand access to agricultural insurance.

Finally, participants agreed that small- and medium-scale family farmers, their organizations, and rural communities must be at the center of this agenda. To achieve this, they called for financial solutions tailored to their needs and integrated into territorial financial ecosystems capable of combining financing, technical assistance, information, risk management, market access, and partnerships.

FAO’s role

During the gathering, FAO highlighted its work with countries across the region to help create the conditions needed to connect the needs and opportunities of individual territories with financial resources, knowledge, innovation, and investment.

“FAO currently manages more than USD 1 billion through over 400 projects in the region’s 32 countries,” said Orellana Halkyer. This presence enables FAO to work directly in the territories while linking public policies, technical capacities, evidence, and partnerships with financial institutions and development partners.

The gathering also contributed to a longer-term regional dialogue on the need to build territorial financial ecosystems capable of addressing the diverse needs of producers, organizations, cooperatives, and agrifood businesses and turning opportunities into viable, sustainable, and inclusive investments.

As part of this work, the Hand-in-Hand Initiative and its Geospatial Platform use advanced analytics to identify the territories where investment can have the greatest impact on reducing poverty and hunger. Since its launch in 2019, the Initiative has helped mobilize USD 1.75 billion in Latin America and the Caribbean by structuring investment portfolios aligned with national priorities and the Sustainable Development Goals.

A regional dialogue among governments, development banks, investors, and organizations

The event brought together government authorities from across the region, including Jaime Campos Quiroga, Minister of Agriculture of Chile; Vanderley Ziger, Secretary for Family Farming and Agroecology at Brazil’s Ministry of Agrarian Development and Family Farming; Enrique Estuardo Maldonado, Undersecretary for Investment for Development at Guatemala’s Secretariat for Planning and Programming of the Presidency (SEGEPLAN); and Julián Arias, Administrative Vice Minister at Costa Rica’s Ministry of Agriculture and Livestock.

Representatives of public and development banks and regional financial institutions also participated, including Crédito Agrícola de Habilitación (CAH) of Paraguay, Banco del Nordeste of Brazil, Banco de Desarrollo Productivo of Bolivia, the Central American Bank for Economic Integration (CABEI), and the Development Bank of Latin America and the Caribbean (CAF).

The gathering also included representatives of private financial institutions and organizations working in investment and financial inclusion, including Cresol, Fundación PROFIN, Aliados de Impacto, BBVA, and Vox Capital.

Representatives of international organizations and regional integration mechanisms also participated, including the Amazon Cooperation Treaty Organization (ACTO), the Caribbean Community (CARICOM), the World Bank, the Specialized Meeting on Family Farming of MERCOSUR (REAF/MERCOSUR), and the Office of the United Nations Resident Coordinator.

The dialogue highlighted the need to advance a new generation of investments that combine productivity, inclusion, climate resilience, and territorial development, while strengthening coordination among public- and private-sector stakeholders to expand financing opportunities in rural areas.