The event was held to showcase the strategic approach of the FAO, Italy, Spain, Egypt, WFP and IFAD to the use of debt swaps as instruments to promote food security, nutrition, and climate; and to gather a range of relevant sovereign and multilateral actors that have been engaged in recent years in debt-for-food security swaps, as well as other programmes. In line with the Sevilla Commitments (a comprehensive, agreed high-level agenda for the reform of the global financial architecture and mechanisms to finance sustainable development into the future).
Themes discussed during the event:
What is Dept Swap? and FAO’s initiatives
- A debt swap is a collaborative agreement where creditors forgive external debt on the condition that the debtor nation reinvests the equivalent capital into local sustainability initiatives.
- Provide technical alignment, where they ensure that fiscal commitments specifically target the transformation of agrifood systems; programmatic design, where they create results-based initiatives with rigorous monitoring to ensure transparency; and strategic integration, which aligns these local investments with national priorities and global Sustainable Development Goals (SDGs).
Spain’s Strategic Leadership & The Sevilla Commitment
Key Achievements & Impact
- Proven Record: €1.6 billion mobilised via 47 agreements across 27 countries.
- Current Reach: €810 million, currently funding 23 active programs in 17 nations.
- Future Pledge: A new €300 million commitment over five years dedicated to food security.
The Global Hub
In partnership with the World Bank, Spain launched a Global Hub for Debt-for Development Swaps. This initiative aims to:
- Standardise international processes.
- Provide essential technical support.
- Lower the high transaction costs and fragmentation that previously limited these financial tools.
Italy’s “Shared Responsibility” & The Mattei Plan
Strategic Initiatives
- The Africa Initiative: Announced in June 2025, this €268 million debt relief program targets 15 African nations.
- Sector Evolution: While initially focused on health and education, the program underwent a rapid pivot to prioritise food security within its first two years.
- Climate Resilience: The February 2026 Climate Toolkit pioneered “debt-suspension clauses,” allowing nations hit by natural disasters to pause repayments and redirect funds to emergency recovery.
Models of Success
- The Egypt Blueprint: A landmark partnership that converted $350 million in debt into local development, with 45% specifically allocated to food security projects.
- Co-Generation Model: A collaborative approach requiring transparency and “co-writing” projects with local governments, the private sector, and civil society to ensure local ownership and long-term sustainability.
The Egypt Case Study: A Blueprint for Food Security
Since 2001, Italy and Egypt have set a global standard for debt-for-development conversions, proving that debt relief can directly fuel sustainable growth.
- Financial Impact: Converted $350 million in debt into high-impact investments across three phases.
- Food Security Focus: Nearly 45% of funds are dedicated to nutrition and modernising irrigation/supply chains, supported by experts from the FAO, IFAD, and WFP.
- The Success Formula: Built on transparency and “co-generation,” ensuring that projects are designed collaboratively for the long-term sustainability of the local agrifood sector.
WFP’s Scalable Financing Model
The World Food Programme (WFP) is transitioning from isolated debt deals to a systematic, scalable financial architecture.
Proven Impact
- The Pakistan-Italy Model: A national social protection program addressing malnutrition through 560 facilitation centres, supporting 4.5 million women and children.
- Global Portfolio: WFP has facilitated 14 debt swap agreements across 6 countries, with 5 leading nations mobilising $160 million for food security and education.
Strategic Evolution
- From Deals to Solutions: Advocating for a shift from “one-off” individual transactions to scalable financing frameworks.
- Long-Term Vision: Moving beyond temporary relief to integrate food security directly into national budgets through strengthened partnerships with donors like Italy and Spain.
IFAD’s Call for Global Stability
- Global Instability Context: Noted that current geopolitical and economic volatility reinforces the urgent need for sustainable food security as a foundation for global peace.
- Managing Historical Debt: Acknowledged the immense pressure on developing countries struggling to repay historical debts, arguing that these nations should be empowered to reinvest those funds into their own development rather than being stifled by interest.
- A Willingness to Work: Focused on supporting countries that demonstrate a strong desire to reform their agrifood systems but are currently held back by financial constraints.
Core Challenges & Solutions
- Critical Lens: Both nations agreed that debt swaps must be viewed critically to ensure they lead to long-term agrifood resilience rather than just short-term relief.
- Technical Capacity: The focus has shifted toward building the technical and legal capacity of developing nations to negotiate better terms.
- Sustainability: By linking debt relief to the Sevilla Project goals, these financial mechanisms are now being integrated into global climate and nutrition frameworks to guarantee a “Just Transition.”
Autor: Ruby Thapaliya, Youth Intern, Nepal
