China Renews US$10M Contribution to IFAD's SSTC Facility, Launching Phase II to Boost Global South Rural Development

The China-SSTC Facility, inaugurated in 2018 with an initial US$10 million contribution from China, has been instrumental in promoting knowledge-sharing and collaboration among Southern countries.

During IFAD’s 48th Governing Council meeting in Rome, Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), and Liao Min, Vice Minister of Finance of the People’s Republic of China, announced China’s renewed US$10 million contribution to the China-IFAD South-South and Triangular Cooperation (SSTC) Facility. This funding marks the launch of Phase II of the Facility, which aims to expand its impact on rural development in the Global South.

The China-SSTC Facility, inaugurated in 2018 with an initial US$10 million contribution from China, has been instrumental in promoting knowledge-sharing and collaboration among Southern countries. By the end of 2024, the Facility had supported 20 SSTC projects across 40 countries in Africa, Asia and the Pacific, and Latin America and the Caribbean, directly benefiting over 50,000 people and indirectly supporting over 100,000 through shared best practices and innovations.

Phase II: Expanding Impact and Promoting Inclusive Growth

With this renewed funding, Phase II of the China-SSTC Facility will promote greater exchange of knowledge, technology, and resources among developing countries, contributing to rural poverty reduction, food security, and increased resilience for rural communities. The Facility’s strategic grants will focus on:

• Promoting innovative solutions to strengthen productive, entrepreneurial, financial, and marketing capacities of rural populations and small-scale farmers.
• Supporting inclusive production and business models to raise rural incomes in both agricultural and non-farm sectors.
• Facilitating investment opportunities and market linkages between developing countries.

Advancing Sustainable Development Goals

This second phase will further contribute to the achievement of the United Nations Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty) and SDG 2 (Zero Hunger). The initiative will enhance rural livelihoods, transform agri-food systems, and empower small-scale farmers by leveraging China’s experience in poverty alleviation and rural development.

Alvaro Lario praised China’s continued commitment, stating, “China’s success in lifting millions out of poverty offers valuable lessons for the world. This renewed contribution empowers us to accelerate progress in rural poverty reduction and promote knowledge-sharing through South-South and Triangular Cooperation.”

The renewed partnership between China and IFAD underscores their shared commitment to rural transformation and global agricultural development, driving progress toward a more sustainable and inclusive future for the Global South.