EIB agrees to Euro 350 million loan to IFAD to strengthen food security, reduce poverty

Rome [Italy], May 17 (ANI/WAM): 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 in Rome by EIB Vice-president Ambroise Fayolle and IFAD President Alvaro Lario.

The agreement signed today for a total of Euro 350 million is the second finance contract under the Framework agreement for the Euro 500 million package announced in November 2022.

This EIB financing, in line with the EU's 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 initial tranche of Euro 150 million was disbursed in March 2023.

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 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 Euro 10.8 billion beyond the European Union in 2022. (ANI/WAM)