IFAD Highlights Youth Entrepreneurs as Key to Food Security

The call came during the 49th session of IFAD’s Governing Council, where leaders underscored the urgency of investing in rural youth to drive productivity, resilience and long-term food security.

At a time of mounting geopolitical tensions and global food insecurity, the International Fund for Agricultural Development (IFAD) has placed young entrepreneurs at the centre of efforts to transform food systems and stabilize rural economies worldwide.

The call came during the 49th session of IFAD’s Governing Council, where leaders underscored the urgency of investing in rural youth to drive productivity, resilience and long-term food security.

“Young entrepreneurs bring energy, digital skills and creativity,” said IFAD President Alvaro Lario in his opening address.“IFAD can help turn these strengths into viable businesses by investing in training, access to finance, market linkages and the networks that enable rural enterprises to grow.”

“This is not simply about supporting projects — it is about building rural productivity as a pillar of global food security,” he added.

1.3 Billion Young People, Many Facing ‘Opportunity Deficit’

Globally, 1.3 billion young people make up the largest generation in history. Roughly half live in rural areas of developing countries, where limited access to capital, infrastructure and markets has created what IFAD describes as an “opportunity deficit.”

Closing that gap is seen as essential to meeting rising global food demand while generating employment across agricultural value chains — from farming and storage to processing, marketing and exports.

“Investing in young entrepreneurs is not a choice, but a necessity if we are to build sustainable and resilient food systems,” Lario said.

Private Sector Leadership and Africapitalism

The session featured a high-profile dialogue between Lario and Tony Elumelu, Chairman of Heirs Holdings and founder of The Tony Elumelu Foundation, who emphasized agriculture’s strategic importance to Africa’s economic future.

“Agriculture is not just a livelihood — it is a strategic resource that feeds our towns and cities, powers rural economies and sustains communities,” Elumelu said.“We cannot grow Africa without power and we cannot grow Africa without food.”

Elumelu highlighted the concept of “Africapitalism,” which promotes private sector-led development driven by African entrepreneurs rather than long-term reliance on aid.

“When we invest in young entrepreneurs, we do not just support individuals — we strengthen communities, reduce poverty, create jobs, and enable rural communities to grow from within,” he said.

Of the 24,000 entrepreneurs supported by The Tony Elumelu Foundation, about 21 percent operate in agriculture and agribusiness, collectively creating more than 400,000 direct and indirect jobs.

“This is clear proof of the potential of agriculture to uplift communities across Africa,” Elumelu added.

IFAD’s First-Mile Investment Model

As the only international financial institution dedicated specifically to investing at the “first mile” of food systems — targeting smallholder farmers and rural enterprises — IFAD leverages public funding to crowd in additional investment.

According to the Fund, every dollar it receives generates approximately six dollars in high-impact investment on the ground. Impact assessments indicate that these investments typically raise rural incomes, productive capacity and market access by more than 30 percent.

Renewed Push Ahead of Replenishment

Approaching its 50th anniversary and preparing to launch consultations for its fourteenth replenishment, IFAD signaled a renewed focus on measurable, results-based partnerships with governments, rural communities and private investors.

“We are all invested in this mission, and we will all share its success,” Lario concluded.

With global food systems under strain from climate change, conflict and economic volatility, IFAD leaders argue that empowering rural youth entrepreneurs may be one of the most effective pathways to building stability and shared prosperity.