EIB and WFP Launch Climate-Risk Insurance Partnership in Ethiopia and Expand Food Security Initiatives

EIB and WFP Launch Climate-Risk Insurance Partnership in Ethiopia and Expand Food Security Initiatives

(IN BRIEF) During the FfD4 conference in Seville, the EIB announced expanded collaborations with the World Food Programme, the FAO, and the Global Alliance Against Hunger and Poverty to tackle food insecurity, promote sustainable agriculture, and build resilience against climate and economic shocks. The new MoU with WFP focuses on climate-risk insurance, infrastructure, and inclusive financing, kicking off with a joint insurance scheme in Ethiopia alongside a €110 million rural finance credit line. The FAO partnership—extended to 2030—leverages €1.4 million for technical assistance, facilitating project design in Ethiopia and Liberia and bolstering the EIB’s agrifood lending. Through the Seville Action Platform, the EIB also committed to two initiatives fast-tracking finance for poverty reduction, zero hunger, and climate-resilient social protection, aiming to streamline donor funding directly to vulnerable communities.

(PRESS RELEASE) LUXEMBOURG, 3-Jul-2025 — /EuropaWire/ — At the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain, the European Investment Bank (EIB) unveiled a series of new partnerships and commitments to strengthen global food security, sustainable agriculture, and resilience in fragile regions. Vice-President Ambroise Fayolle emphasized that these alliances with UN bodies and the Global Alliance Against Hunger and Poverty will “leverage synergies and best practices to bolster nutrition, empower farmers—especially women—support climate adaptation, and transform agriculture into a more sustainable, resilient sector.”

Strategic Alliance with the World Food Programme
The EIB formalized its collaboration with the World Food Programme (WFP) by signing a Memorandum of Understanding covering climate resilience, food security and nutrition, critical agricultural infrastructure, innovative financing instruments, and inclusive finance access for SMEs and smallholders. A complementary Letter of Understanding allows the EIB to directly fund WFP operations and tap into its advisory expertise. Their inaugural joint venture will launch a climate-risk insurance scheme in Ethiopia, dovetailing with an existing €110 million EIB credit line to the Development Bank of Ethiopia, which enhances rural financing—particularly for women and small-scale farmers—and strengthens local financial institutions.

Extended Partnership with the FAO
Building on a collaboration first established in 2015 (and renewed in 2020), the EIB and the UN Food and Agriculture Organization (FAO) have extended their MoU through 2030 to advance sustainable agriculture in sub-Saharan Africa. The EIB has committed €1.4 million to FAO technical assistance for project identification and preparation, enabling complex operations in Ethiopia and Liberia—including sector studies, feasibility analyses, and capacity evaluations. Through this cooperation, the EIB intends to expand its agrifood and bioeconomy lending pipeline, drive job creation, boost farmer incomes, and empower women by supporting agri-SMEs and smallholders via financial intermediaries and public-private value-chain initiatives.

Engagement with the Global Alliance Against Hunger and Poverty
Since joining the G20-led Global Alliance Against Hunger and Poverty in 2024, the EIB has embraced a multi-level approach that integrates social protection with access to education, health, finance, and agricultural services. At FfD4, the EIB signed onto two Seville Action Platform initiatives to accelerate financing for SDGs 1 (No Poverty) and 2 (Zero Hunger) and to scale up climate-resilient social protection and support for smallholder agriculture. These measures aim to streamline large-scale national programmes, channel pooled donor funds, and ensure resources reach communities in need.

Background information

EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments contributing to EU policy goals. EIB Global carries out the EIB’s operations outside the EU. As a key partner in the EU’s Global Gateway, the EIB aims to support at least €100 billion of investments by 2028, one third of the strategy’s target. Over the 2014–2023 period, EIB lending outside the EU totalled more than €70 billion, with a significant share supporting infrastructure, climate, and food security. With offices across the world, EIB Global is close to local people, firms and institutions, and fosters strong Team Europe partnerships with development finance institutions.

FAO

The FAO Investment Centre works to deliver investment and finance solutions that promote inclusive economic growth, better diets and nutrition, greater equity and climate resilience. The Centre provides a full suite of investment support services to FAO Member states, working in over 120 countries. It partners with governments, national and international financing institutions, the private sector, research institutions, academia and producer organizations to help countries achieve lasting impact at scale.

WFP

The World Food Programme is the world’s largest humanitarian organization saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity, for people recovering from conflict, disasters and the impact of climate change.

The Global Alliance against Hunger and Poverty

The Global Alliance against Hunger and Poverty was established in 2024 as a proposal from the Brazilian presidency of the G20 to support and accelerate efforts to eradicate hunger and poverty (Sustainable Development Goals (SDGs) 1 and 2), while reducing inequalities (SDG 10). The core of the Alliance is the Policy Basket, a menu of rigorously evaluated policy instruments, ensuring that donor investments are directed toward cost effective, high-impact initiatives. Acting as a neutral facilitator, the Alliance builds partnerships and mobilizes financial and knowledge resources to implement these policy instruments.

In an innovative approach, the Alliance reduces transaction costs and avoids duplication of efforts by leveraging a unified database, streamlining the identification of knowledge and funding needs and opportunities. The Alliance also differentiates itself by favoring   the pooling of resources and expertise, enabling greater impact and efficiency compared to fragmented individual efforts. This allows the implementation of comprehensive, multisectoral strategies.

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SOURCE: European Investment Bank