EIB, IFAD seal agreement to strengthen food security, accelerate project implementation in Africa

By Cynthia Ezekwe 

The European Investment Bank (EIB) and the United Nation (UN) International Fund for Agricultural Development (IFAD) have sealed agreements to strengthen food security, climate adaptation, and accelerate project implementation in low-and-middle-income African countries.

The agreements were signed recently in Rome by Ambroise Fayolle, EIB Vice-president, and Alvario Lario, IFAD president, for a total of  €350 million, which  is the second finance contract under the Framework agreement for the €500 million package announced in November 2022.

A statement made available to Business a.m disclosed that the initial tranche of €150 million was disbursed in March 2023, noting that the EIB financing, in line with the European Union (EU) global gateway strategy, 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.

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 statement also noted that 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.

It added that the 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.

Alvaro Lario, president of IFAD, while commenting on the agreement said, “By joining forces, we can eradicate hunger and poverty, and support millions of small-scale farmers to be more resilient to climate change.

Lario noted that 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 frontline of the global climate and economic crisis and remain essential to global food security by producing one third of the world’s food.

Also commenting,Ambroise Fayolle, vice president of the EIB, said: “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.”

The signed agreements  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 EIB Global branch, launched last year and through which the bank invested €10.8 billion beyond the European Union in 2022.