Africa-Press – Uganda. In a significant stride toward transforming rural livelihoods and food systems in East Africa, the International Fund for Agricultural Development (IFAD) and the East African Development Bank (EADB) have signed a groundbreaking cofinancing agreement that will mobilize investments to support small-scale farmers, improve infrastructure, and drive sustainable agricultural growth.
The partnership was formalized on the sidelines of the UN Food Systems Summit +4 Stocktake held in Addis Ababa, Ethiopia, signaling a new era of collaboration between global development partners and regional financial institutions.
“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.”
The agreement will enable joint cofinancing of projects within IFAD’s vast East African portfolio, which includes nearly $2.3 billion currently invested in 51 ongoing projects across 22 East and Southern African countries.
These projects span a wide range of rural development priorities, including infrastructure, agribusiness, and adaptation to climate change.
EADB Acting Director General Benard Paul Mono described the partnership as a vital opportunity to elevate agricultural productivity and improve livelihoods.
“Together, we will support programs that mechanize agriculture, build climate resilience, and help farmers transition from subsistence to market-oriented farming,” Mono said.
“Our focus will be on strengthening agricultural value chains and unlocking economic opportunities that elevate rural livelihoods.”
With Africa’s population expected to double by 2050 and food demand rising rapidly, development experts say such partnerships are critical to unlocking the continent’s untapped agricultural potential.
Smallholder farms—estimated to number between 33 million and 50 million—form the backbone of Africa’s food supply and rural economy, supporting hundreds of millions of people.
The IFAD-EADB agreement will also focus on strengthening national food system pathways, enhancing rural infrastructure, and supporting youth employment through agribusiness development and value chain integration.
By aligning financing strategies and leveraging each institution’s strengths, the partnership is expected to deliver tangible impact across East Africa’s rural communities—ensuring farmers are not only more productive but better connected to markets, climate-resilient, and economically empowered.
As East African nations confront the dual pressures of climate change and food insecurity, this new alliance offers a promising model for sustainable rural transformation anchored in regional leadership and global expertise.
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