With rising instability threatening global food supplies, investing in young entrepreneurs working in food systems is critical to building a more resilient and prosperous future for everyone.
Conflict in the Middle East has exposed just how vulnerable rural populations are to global shocks. The crisis is disrupting energy and fertilizer supply chains, driving up costs of every step of the food production process and creating supply uncertainty just as nearly half the world enters critical planting seasons. The likely consequences – lower food production, higher costs, and falling incomes – risk triggering a prolonged global food shock with cascading social, economic, and political consequences.
When rural economies, and the agri-food activities that underpin them, are neglected, the impact of these challenges is put into sharper focus. But it doesn’t have to be this way.
According to the International Fund for Agricultural Development (IFAD), with the right investment – especially in young people – rural communities could be transformed. Home to nearly half of the world’s 1.2 billion youth and the foundation of our food systems, rural communities could become an engine for growth; one that starts at the base of the agri-food economy and provides a foundation for global food security, shared prosperity, and resilience.
Investing in agriculture
IFAD is the only international financial institution exclusively focused on transforming rural economies. Working at the “first mile” of food systems, IFAD works with public and private partners to finance investments building shared economic growth, resilience, and food security.
In partnership with governments, multilateral organizations, private investors, and small and medium-sized agri-food businesses that make up rural economies, its primary aim is to deliver real-world impact that improves economic and market outcomes in rural areas of low- and middle-income countries.
For example, IFAD is a core partner to World Bank’s AgriConnect initiative, pledging to reach at least 70 million small-scale farmers and significantly transform their lives by increasing incomes, productive capacity, and market access by 2030. Overall, AgriConnect aims to reach upwards of 300 million farmers, mobilizing $9 billion to transform livelihoods and strengthen global food security through a network of partners.
Such investments – especially those involving young entrepreneurs – deliver real and sustainable results. In the last three years alone, impact assessments have shown that IFAD investments have enabled 49 million people to increase their incomes, 39 million to improve their market access, and 40 million to increase production, critical to food security and economic growth. This support is not only strengthening the resilience of rural people exposed to the sharp end of climate shocks and other challenges, but also national food supplies and food systems.
As 2026 bears the weight of new stress points, it also marks IFAD’s 14th replenishment (IFAD14). Launched in February and continuing throughout the year, it seeks to address three main priorities: deeper market integration, expanded rural employment, and strengthened resilience to climate, conflict, and economic shocks – with investment in rural youth at its heart.
The 14th Edition of the International Fund for Agricultural Development
The opportunity of youth
There will be 1.3 billion 15- to 24-year-olds worldwide by 2030. This is the largest cohort in history, and around half will live in rural areas of developing countries.
That’s why many IFAD initiatives contain specific activities targeted at young people. Through investments in training and technology, IFAD works with young people to ensure they have the tools they need to succeed – fostering creativity, innovation, and an entrepreneurial spirit.
In Nigeria, for example, IFAD is supporting private sector investment in food logistics. Starting with a $5 million loan in 2021, IFAD’s investment in Babban Gona Farmer Services has enabled tens of thousands of young Nigerian farmers to access training alongside high quality seeds and fertilizers, helping to drive agricultural transformation.
As a result, 377,000 small-scale rice and maize producers have been able to access funding not only from IFAD but also from additional sources, doubling the amount invested. Collectively, they now represent the largest group of maize producers in Africa.
This approach shows that investing in financing and training can encourage young people to build businesses locally – rather than migrating to cities or overseas in search of opportunity – and as a result, create jobs, improve agricultural yields, and bolster global food supplies.
Food systems of the future
IFAD’s nearly 50 years of experience show that even in a constrained financial environment, smart investment is possible – by turning public funds, private capital, and development finance into long term, scalable solutions. But financing alone is not enough.
The greatest return comes when these investments are deliberately directed toward young people who represent the future workforce of food systems and rural economies. As IFAD scales up its lending and partnerships as part of its 14th replenishment, the message is clear: investing in youth driven food systems is not a cost, but a strategic opportunity to drive growth, strengthen stability, and build resilience for a rapidly changing world.
Learn more about IFAD’s plan for its next replenishment here.
