Sustainable Agrifood Systems Project in Lao PDR

In 2024, one in five rural households in the Lao People's Democratic Republic (Lao PDR) faced food insecurity, despite agriculture employing more than half the population. Smallholder farmers remain vulnerable to climate shocks and market barriers due to limited infrastructure, degraded resources, and rising input costs. 

On 3 July 2025, ADB approved the $65.8 million Sustainable Agrifood Systems Project in Lao PDR. The ASEAN Catalytic Green Finance Facility (ACGF) supported the project’s development from inception to approval with technical assistance funded by the Green Climate Fund and the United Kingdom, and $20 million in cofinancing provided by the ASEAN Infrastructure Fund (AIF) and the European Union. 

Designed to enhance climate resilience and food security, the project will expand access to climate finance, build rural infrastructure, and support women’s economic empowerment. It is expected to benefit 32,000 rural households and increase the export value of high-value commodities, such as bamboo, cassava, durian, coffee, and tea, by 20%. 

This brochure highlights how early-stage technical assistance and blended finance helped shape an ADB-supported project to strengthen food security and rural livelihoods in Lao PDR. It is part of the Catalytic Finance Stories, a series that highlights how AIF, ACGF, and their partners are unlocking climate-smart, high-impact projects across Southeast Asia through innovative finance.