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 Africa. The agreements were signed yesterday 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.

 

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.