The European Union and The International Fund for Agricultural Development (IFAD)
The International Fund for Agricultural Development (IFAD) is a unique institution in the UN system. Both a specialised UN agency, and an International Financial Institution (IFI), it is one of the three Rome-based UN agencies and the second largest multilateral lending institution in the agricultural sector[1].
IFAD’s main mandate is to invest in smallholder farmers and rural communities, addressing poverty and food insecurity. Through low-interest loans and grants, IFAD develops and finances projects that enable rural communities to overcome poverty, through individual or collective initiatives and projects. IFAD focuses on country-specific solutions, that improve access by the rural population to financial services, markets, technology, land, and other natural resources, ensuring financial inclusion and working on agrifood systems transformation and climate resilience.
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[1] After the International Development Association - World Bank Group.
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EU partnership with IFAD
The EU is a strategic partner of IFAD and collaborates closely with the organisation, by supporting key projects on sustainable agri-food systems, rural development, farmers’ organisations, agroecology, remittances for rural communities etc. Further areas of existing (or future) collaboration include climate resilience, sustainable fisheries and aquaculture, biodiversity and the bioeconomy. The EU is putting a strong emphasis on collaboration with IFAD in support of the agricultural sector in Ukraine.
Since Ukraine became a member of IFAD in December 2024, and in line with IFAD’s Ukraine Country Strategy Note, the EU and IFAD are working on further opportunities for collaboration with Ukraine and the Ukrainian farmers, for the reconstruction of Ukraine’s agricultural sector and the country’s alignment with the EU in the agricultural domain.
The EU, even if it is not currently a member of IFAD, remains the largest non-member contributor to IFAD. There is an active project portfolio of around 400 million EUR, complemented by a loan of 350 million EUR by the European Investment Bank[1]. The EU participates as a Special Observer in IFAD’s highest governing body, IFAD’s Governing Council, and in all of IFAD’s Executive Board meetings.
Examples of EU-supported initiatives at IFAD include:
- The Agri-Business Capital (ABC) Fund flagship blended finance project, providing financing to smallholder farmers and small agri-businesses.
- Farmers’ Organisations for Africa, Caribbean and Pacific Countries (FO4ACP) on capacity building interventions for Farmers Organisations.
- The Global Programme for Small-scale Agroecology Producers and Sustainable Food Systems Transformation, to strengthen the practices of agroecology.
- Investing in Livelihood Resilience and Soil Health in ACP Countries on sustainability challenges facing agriculture in African, Caribbean and Pacific (ACP) countries, including climate change, environmental degradation and economic shocks.
- The 'ResilientRemit' programme to boost climate resilience in rural areas through remittances and diaspora investments etc.
In June 2025, during the 6th African Union – European Union Agriculture Ministerial Conference in Rome, the EU Commissioner for Agriculture Christophe Hansen and IFAD’s President Alvaro Lario signed a ‘Statement of Contract’ for an upcoming Contribution Agreement between the EU and IFAD to further support Farmers’ Organisations in Sub Saharan Africa (EUR 26 million).
[1] November 2025
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