G20 backs landmark MDB roadmap to strengthen global fertilizer supply chains after 6 development banks pledge new financing

G20 finance ministers meeting in Asheville, North Carolina, on September 1 formally welcomed a new multilateral development bank commitment to build a coordinated roadmap for strengthening global fertilizer supply chains. The endorsement came in the G20 Chair’s Statement, which stressed that “the free, safe, and predictable navigation through the Strait of Hormuz and worldwide” is essential to sustaining growth, and urged countries to avoid unnecessary export restrictions.

The statement responded directly to a joint declaration issued the same day by six major development institutions — the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, International Fund for Agricultural Development, and the World Bank Group. The MDBs committed to support countries through increased financing for fertilizer production, processing, blending, storage, transportation, and other critical infrastructure.

The joint statement acknowledged that repeated shocks — from the 2022 Russia-Ukraine crisis to the ongoing Strait of Hormuz disruption — have exposed structural vulnerabilities that disproportionately affect smallholder farmers and low-income households. Beyond physical infrastructure, the MDB agenda includes promoting soil diagnostics, precision nutrient management, digital agriculture, and farmer advisory services.

The G20 fertilizer supply chain statement also aligned with the proposed G7+ Action Plan on Fertilizer Shocks and Food Systems Resilience, which calls for stronger monitoring, early warning systems, and timely financing to address fertilizer-related food security risks.

The coordinated announcement represents the most concrete multilateral policy response to fertilizer supply disruptions since the 2022 IFI Action Plan to Address Food Insecurity.

Source: U.S. Treasury