Two major forces in the African development financing arena are collaborating to boost rural development projects across the continent.

The United Nations’ International Fund for Agricultural Development (Ifad) and the Development Bank of Southern Africa (DBSA) have signed a MoU to invest in people-centred projects that enhance wider rural economic development in African member states, reports Africa Business Communities.

Ifad’s regional office in East and Southern Africa will work closely with the DBSA, based in South Africa, to implement the MoU, focusing on six areas. The focus areas include integrated sustainable development to improve the wellbeing of targeted rural communities; innovative practices and financing instruments to promote environmental conservation and resilience; improved value chains and social infrastructure to empower rural communities and promote a dynamic economy; knowledge sharing and capacity building; regional collaboration and financing for transforming rural areas; governance and policy support.

‘The partnership offers an important opportunity to jointly leverage additional resources and expertise for our projects, enhancing their impact on rural development, poverty reduction, climate resilience and economic growth across Africa,’ Ifad president Alvaro Lario said after the signing of the MoU on the sidelines of the Finance in Common Summit in Cape Town.

11 March 2025
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