- Two agreements were signed today in Rome to strengthen EIB-IFAD cooperation in low- and middle-income African countries, in line with the EU’s Global Gateway strategy.
- Under one agreement, the EIB will grant IFAD a €350 million loan to strengthen food security, reduce poverty and build resilience to climate change in rural areas.
- The other agreement sets a procedural framework for streamlined procurement in jointly financed projects.
Today the European Investment Bank (EIB) and the UN’s International Fund for Agricultural Development (IFAD) signed two agreements to further strengthen their cooperation in low- and middle-income countries worldwide, with a particular focus on Africa. The agreements were signed in Rome by EIB Vice-President Ambroise Fayolle and IFAD President Alvario Lario.
One agreement, for a total of €350 million, is the second finance contract under the framework agreement for the €500 million package announced in November 2022. In line with the European Global Gateway strategy, this EIB financing will bolster IFAD’s ability to help small-scale farmers adapt to climate change and cope with the high food, fertiliser and fuel prices linked to the ongoing global food crisis. In addition to improving food security, the deal will make these farmers more resilient to climate change and preserve natural resources, safeguarding the environment. The initial tranche of €150 million was disbursed in March 2023.
The other EIB-IFAD agreement, for a procedural framework, will further strengthen synergies by facilitating project implementation and procurement monitoring for jointly financed public sector projects in shared countries of operation. The framework supports the growing trend of cooperation and mutual reliance, drawing upon previously established frameworks with other multilateral development banks to provide clear, consistent and resource-efficient procurement structures.
“By joining forces, we can eradicate hunger and poverty, and help millions of small farmers be more resilient to climate change. The partnership with the EIB will make a difference in the lives of millions of rural people and small-scale producers who are on the frontlines of the global climate and economic crisis, and remain essential to global food security by producing one third of the world’s food,” said Alvaro Lario, President of IFAD.
“The strengthened EIB-IFAD partnership will allow both organisations to further increase support for low- and middle-income countries outside Europe, with a specific focus on Africa. By sharing synergies and best practices, our organisations aim to improve food security and support small farmers across the globe in their efforts to adapt to the consequences of climate change and turn agriculture into a more resilient and sustainable business,” said Ambroise Fayolle, Vice-President of the EIB.
The agreements signed today fall within the EIB’s strategy to increase its cooperation with clients, EU Member States, development finance institutions, civil society and many other partners under the EIB Global branch launched last year (through which the Bank invested €10.8 billion beyond the European Union in 2022).
Background information
The European Investment Bank is the long-term lending institution of the European Union, owned by its Member States. It finances sound investment contributing toward EU policy goals. EIB Global carries out EIB operations outside Europe. As a key partner in the EU Global Gateway, we aim to support at least €100 billion of investment by 2028, one third of the strategy’s target. With offices around the world, EIB Global is close to local people, firms and institutions, and fosters strong Team Europe partnerships with development finance institutions.
IFAD is an international financial institution and a UN specialised agency. Based in Rome — the food and agriculture hub of the United Nations — IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than $24 billion in grants and low-interest loans to fund projects in developing countries. A wide range of photographs and broadcast-quality video content of IFAD’s work in rural communities can be downloaded from our Image Bank.