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ICC-FAO Pathway to the Hand-in-Hand Initiative Investment Forum 2025. Accelerating investment in agrifood systems transformation

Concept Brief, June-October 2025










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    Innovative Evidence-Based Solutions and Investments in Agrifood Systems Transformation and Rural Development in Bhutan in the Context of Hand-in-Hand Initiative - TCP/BHU/3805 2024
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    Bhutan’s agrifood systems face multifaceted challenges given the country’s mountainous terrain and rugged topographic features. Less than 20 percent of arable land in Bhutan is irrigated and almost 30 percent of arable land is currently left fallow. Yields for almost all crops and livestock produce remain below regional averages and production for most crops has remained stable over the last two decades for such reasons as small landholdings, issues with inputs, little innovation or investment in research and development, low adoption of technology and growing environmental stress. Shifts in farm labour demographics (youth migration from rural to urban areas for employment and education) coupled with an ineffective extension service have further impacted on production, distribution and income generation from food products. Farming has also become more vulnerable as a result of climate change. Post-harvest loss remains high and agriprocessing infrastructure inadequate, while markets and standards continue to be weak. The prevalence of food insecurity and malnutrition is relatively high. Diets, particularly in remote areas, remain poor.
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    Hand-in-Hand Initiative: Supporting Agricultural Transformation through Informed Agricultural Planning and Investment - TCP/MLW/3805 2025
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    Malawi's economy heavily depends on agriculture, with over 80 percent of the population relying on smallholder farming. However, agricultural production and productivity remain below potential, failing to meet growing domestic and export demands. This shortfall is driven by factors such as environmental degradation, population pressure on arable land, limited access to modern farming technologies, low mechanization, poor infrastructure and the effects of climate variability. Additionally, limited access to up-to-date information and data hampers informed investment planning in the agricultural sector. To address these challenges, the government launched the Malawi 2063 Vision in January 2021, which focuses on three pillars: agricultural productivity and commercialization, industrialization and urbanization. A key aspect of this strategy is to identify areas with high agricultural potential to optimize investment outcomes, aligning with the goals of the Food and Agriculture Organization of the United Nations (FAO) Hand-in-Hand (HiH) Initiative. This initiative uses advanced data and Geographic Information System (GIS) tools to support agricultural transformation and sustainable rural development, targeting poverty reduction, hunger eradication and the reduction of inequalities by leveraging evidence-based data for better-targeted investments. It utilizes sophisticated econometric modelling and geospatial data to assess the agricultural and economic potential of specific micro-regions.
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    Mapping and proposal of action plan to promote investment for the transformation of agrifood systems in the Near East and North Africa region 2025
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    The transformation of agrifood systems in the Near East and North Africa (NENA) region is critical to addressing food security, environmental sustainability, and economic resilience. This report analyzes the enabling and hindering factors shaping investments in the sector, identifies policy and regulatory gaps, and proposes actionable recommendations with a phased action plan to attract investment and foster innovation.A review of policies across the region reveals a diverse landscape shaped by national priorities and global commitments. While countries such as Saudi Arabia and the United Arab Emirates have developed strong investment frameworks, others face challenges including bureaucratic inefficiencies, weak infrastructure, and inconsistent regulations. Key enablers include tax incentives, subsidies, public–private partnerships, and innovative financing models, while persistent obstacles include water scarcity, climate risks, and outdated policies.Comparisons with international best practices highlight gaps in areas such as irrigation, wastewater recycling, and integrated value chains. For example, advanced systems in the Netherlands serve as benchmarks for NENA countries. Priority areas for improvement include expanding smallholder farmers’ access to finance, modernizing irrigation, building climate resilience, and enhancing regional collaboration.The report identifies several thematic investment areas: promoting agritech solutions such as precision agriculture and smart irrigation; investing in water management through desalination and recycling; developing climate resilience strategies; and improving infrastructure, including storage, cold chains, and transport. Supporting smallholder farmers through credit access, cooperative models, and modern technologies is highlighted as essential. These priorities complement existing national strategies, such as Morocco’s Green Generation Strategy and Egypt’s Sustainable Agricultural Development Strategy.To attract and sustain investments, the report recommends strengthening policy and regulatory frameworks, simplifying administrative procedures, and standardizing investment policies. The introduction of blended finance models, alongside tax incentives and subsidies for advanced technologies, would enhance investment appeal. Capacity-building and regional platforms for sharing knowledge and best practices are also emphasized. Infrastructure investments should target reducing post-harvest losses and improving market access, leveraging public–private partnerships for large-scale projects.The proposed action plan outlines three phases: short-term reforms, pilot projects, and training; medium-term scaling of successful initiatives and infrastructure expansion; and long-term systemic transformation through sustainable and integrated agrifood systems driven by regional cooperation.

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