Arab Coordination Group announces $10bn package to support food security goals

The Arab Coordination Group (ACG) has announced it will provide an initial $10bn to alleviate the global food supply crisis, while continuing its long-term support towards food security. According to the latest estimates by the United Nations, about 49 million people worldwide are at risk of falling into famine conditions in the months ahead.

The Arab Coordination Group comprises 10 national, regional, and international institutions such as the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Arab Gulf Programme for Development, the Arab Monetary Fund, the Islamic Development Bank, which is the AAA-rated multilateral development bank (MDB) of the Global South, the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development, the Qatar Fund for Development and the Saudi Fund for Development.

The group coordinates actions, co-finances projects and in many cases, pools resources towards key initiatives with the goal of providing effective and impactful development support through projects and specific programmes.

Speaking at a meeting of the ACG Heads of Institutions in Vienna recently, OPEC fund director general Dr Abdulhamid Alkhalifa, said: “With this bold initiative we are taking quick, decisive and forceful action. Millions of people are facing hunger today, and this is something we simply must address urgently. As a dedicated ACG member, the OPEC Fund fully stands by this commitment.”

The amount represents the total of the ACG members’ commitments, which includes the OPEC Fund; it has already announced a $1bn “Food Security Action Plan”.

The funds will be deployed over the next three years, as immediate support to cover the import costs of basic commodities, such as seeds, grains and fertilisers, while supporting medium and long-term security of food supply in partner countries.

Additionally, the group has agreed to provide financing to mitigate the impact of climate change. It will launch a comprehensive action plan at the UN Climate Conference COP27 in November in Egypt. The initiative will include a collective financial commitment and a roadmap to accelerate energy transition, increase climate resilience and promote energy security.

ACG has also launched a refreshed brand identity and logo, which reflects the common values and objectives of the development finance group. The new logo embodies the shared values of collaboration, excellence, trust and sustainability.