IFAD and EADB Partner to Boost Food Systems and Rural Investment in East Africa

The agreement sets the stage for enhanced collaboration between IFAD and EADB, with the goal of increasing investment in IFAD’s existing and future rural development projects across East Africa.

In a significant move to scale up agricultural investment and strengthen food systems across East Africa, the International Fund for Agricultural Development (IFAD) and the East Africa Development Bank (EADB) signed a landmark cofinancing agreement during the UN Food Systems Summit +4 Stocktake, held today in Addis Ababa, Ethiopia. The partnership marks a new chapter in public development finance, aligning efforts to tackle rural poverty, improve food security, and enhance climate resilience in the region.

A Strategic Alliance to Maximize Impact

The agreement sets the stage for enhanced collaboration between IFAD and EADB, with the goal of increasing investment in IFAD’s existing and future rural development projects across East Africa. By pooling resources and expertise, the two institutions aim to deliver greater outcomes for small-scale farmers, rural entrepreneurs, and marginalized communities.

“Partnering with public development banks like EADB is increasingly important at a time when we need to achieve maximum impact with fewer resources,” said IFAD President Alvaro Lario. “Representing two-thirds of formal financing to agriculture, these PDBs can play a key role in transforming food systems—making them more sustainable, inclusive, and resilient for rural farmers.”

Building on a Strong Foundation of Rural Investment

Africa, and particularly East and Southern Africa, is at the core of IFAD’s global strategy. Over half of IFAD’s 182 active projects are located on the continent. To date, IFAD has committed approximately US$2.3 billion in 51 investment projects across 22 countries in East and Southern Africa. These projects support a wide array of initiatives, from agricultural value chains and irrigation systems to financial inclusion, land governance, and climate-smart technologies.

With this new partnership, EADB will cofinance a select number of these projects, enabling faster disbursements, broader reach, and deeper local engagement. By leveraging EADB’s regional presence and financial mechanisms, IFAD expects to expand its footprint and catalyze new investments from additional stakeholders, including national governments, commercial banks, and private agribusinesses.

Key Areas of Investment

The IFAD–EADB collaboration will focus on several critical development priorities:

• Agricultural value chain development, to enhance production, processing, and market access

• Rural infrastructure, such as roads, storage facilities, and irrigation systems

• Climate change resilience, with a focus on adaptation strategies for smallholders

• Youth and women’s inclusion, through job creation, entrepreneurship, and capacity building

• Strengthening national food system pathways, aligning with broader African Union and UN development goals

These areas are essential to accelerating East Africa’s progress toward food sovereignty, rural economic transformation, and sustainable livelihoods.

Responding to a Growing Food Security Crisis

The agreement comes at a time when food insecurity remains a major concern across Africa. According to UN statistics, one in five Africans cannot afford a healthy diet. Factors such as climate change, regional conflicts, poor infrastructure, and global market volatility have placed increasing pressure on African food systems. Yet, the continent holds immense agricultural potential.

With an estimated 33 to 50 million smallholder farms, Africa has the capacity not only to feed its own population but also to contribute significantly to global food supply. These farms are responsible for producing up to 80% of the food consumed in many African countries and provide livelihoods for hundreds of millions of people.

By investing in small-scale agriculture and supporting the rural economy, IFAD and EADB are taking a bold step toward unlocking Africa’s full agricultural potential while promoting equity, resilience, and inclusive growth.

A Model for Development Finance Collaboration

This partnership between IFAD and EADB is emblematic of the kind of coordinated development finance that is urgently needed to meet the Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty), SDG 2 (Zero Hunger), and SDG 13 (Climate Action).

The collaboration reflects a growing recognition that regional public development banks (PDBs) like EADB are critical actors in delivering financing where it is needed most. Their local knowledge, flexibility, and proximity to grassroots actors make them ideal partners for international organizations like IFAD, which are seeking to bridge the rural investment gap at scale.

Looking Ahead

As the world faces compounding crises—from climate change and pandemics to inflation and food shortages—the IFAD–EADB partnership provides a beacon of hope. It demonstrates that with shared commitment and strategic cooperation, development finance can be both impactful and inclusive.

By reinforcing rural prosperity, supporting food system transformation, and mobilizing greater investment, this agreement has the potential to shift the trajectory of agricultural development across East Africa, empowering smallholder farmers and building resilient economies from the ground up.