The European Investment Bank (EIB) and the UN's International Fund for Agricultural Development (IFAD) have penned two agreements to further strengthen their cooperation in low- and middle-income countries worldwide, with a particular focus on AfricaThe agreements were signed today in Rome by EIB Vice-president Ambroise Fayolle and IFAD President Alvario Lario.
The first agreement allocates the second tranche of €350 million from the €500 million package announced in November 2022. This EIB financing will strengthen IFAD's response to help small-scale farmers adapt to climate change and cope with the ongoing global food crisis linked to high food, fertiliser, and fuel prices. IFAD will allocate most of the EIB resources to low- and middle-income African countries. In addition to improving food security, the deal will strengthen small-scale farmers' resilience to climate change and preserve natural resources, safeguarding the environment. The initial tranche of €150, disbursed in March 2023 aims at enhancing food security and diminish poverty in rural areas.
The signature of the Procedural Framework agreement between the EIB and IFAD will further strengthen synergies by facilitating project implementation and procurement monitoring for jointly financed public sector projects in shared countries of operation. This procedural framework supports the growing trend of cooperation and mutual reliance, drawing upon previously established frameworks with other Multilateral Development Banks (MDBs) to provide clear, consistent, and resource-efficient procurement structures.
"We can only defeat hunger and poverty and help millions of small-scale farmers affront climate change successfully by joining forces. This partnership with the EIB will make a difference in the lives of millions of rural people and small-scale farmers who are on the frontline of global climate and economic crisis but remain essential to global food security by producing one third of the world's food," said Alvaro Lario, President of IFAD.
"The EIB-IFAD strengthened partnership will allow both organisations to further increase the support to 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 around 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 its the EIB Global branch, launched last year and through which the Bank invested €10.8 billion beyond the European Union in 2022.
Background information
The European Investment Bank (EIB) 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's operations outside the EU. As a key partner in the EU's Global Gateway, we aim to support at least €100 billion of investment by 2028, one third of the strategy's target. With offices across 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 United Nations specialized agency. Based in Rome - the United Nations food and agriculture hub - 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 US$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 are available for download from our Image Bank.
