WTO, EIB Sign Deal to Boost Sustainable Investment in Developing Countries

The partnership will combine the EIB’s financial resources and investment expertise with policy tools developed under the Investment Facilitation for Development Agreement (IFDA) at the WTO.

The World Trade Organization (WTO) and the European Investment Bank (EIB) Group have signed a new partnership agreement aimed at expanding sustainable trade and investment opportunities, particularly in developing economies.

The Memorandum of Understanding (MoU) was signed on 4 March in Luxembourg by WTO Director-General Ngozi Okonjo-Iweala and EIB Group President Nadia Calviño, on the sidelines of the EIB Group Forum.

The agreement launches a new EIB–WTO Trade and Investment Facilitation Initiative, designed to strengthen regulatory frameworks, improve investment planning, and help mobilize financing for development projects.

Supporting Investment in Developing Countries

The partnership will combine the EIB’s financial resources and investment expertise with policy tools developed under the Investment Facilitation for Development Agreement (IFDA) at the WTO.

The IFDA, agreed by 128 WTO members, establishes the first global framework aimed at improving conditions for foreign direct investment (FDI) through more transparent and predictable regulatory systems.

The initiative will assist developing countries in:

• Assessing their investment and regulatory needs

• Designing operational action plans for reforms

• Preparing investment-ready projects

Funding from the EIB, along with blended finance instruments and private sector participation, may be mobilized to support these initiatives.

Pilot Programme Focused on Africa

In its initial phase, the programme will focus on selected countries in Africa, targeting key sectors aligned with EIB Global’s development priorities.

These include:

• Green transition and climate investments

• Digital infrastructure and technology

• Health systems

• Education and workforce training

• Sustainable economic growth and job creation

The goal is to unlock new investment opportunities while supporting economic reforms that improve the business environment.

Mobilizing Investment Through Policy Reform

WTO Director-General Ngozi Okonjo-Iweala said the partnership connects policy reforms with financing, helping attract greater investment flows.

“The new EIB-WTO partnership represents an important step toward mobilizing finance and strengthening the investment environment in developing countries,” she said.

She noted that global foreign direct investment flows remain below levels needed to support sustainable development.

“The Investment Facilitation for Development Agreement offers a practical framework to reduce risk, enhance transparency and reinforce regulatory predictability,” she added.

The partnership is expected to support investment in strategic sectors such as critical minerals, digital technologies and the bioeconomy.

Strengthening the Global Trading System

EIB Group President Nadia Calviño said the agreement demonstrates Europe’s support for a rules-based global trading system.

“This agreement between the European Investment Bank and the World Trade Organization Secretariat will help turn trade policy dialogue into concrete, high-impact investments,” she said.

“It will help partner countries attract more and better-quality investment, while supporting reform and creating new trading opportunities for EU businesses.”

Research and Policy Cooperation

Beyond project financing, the WTO and EIB will collaborate on research and analytical work to better understand global investment and trade trends.

These insights will help guide future policy development and investment strategies.

Officials say the partnership could play a key role in strengthening global investment flows, particularly in emerging markets where regulatory reforms and financing are essential to unlocking sustainable growth.