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FAO and the European Investment Bank (EIB) are expanding their collaboration with FAO, a move aimed at increasing private sector investment in agriculture. A  five-year Memorandum of Understanding (MoU)  will foster investment operations in the field of agriculture, private sector development and value chains that promote both EIB's priorities and FAO's strategic objectives.

"This is a landmark agreement for both of us to combine technical knowledge and financial capacity to engage private and public investors in eradicating hunger," said FAO Director-General José Graziano da Silva, noting that ensuring enough global food supply for a growing population and making agrifood systems more sustainable would require robust investments in developing countries.

This MOU offers an exciting opportunity for the joint analysis, planning and execution of investment operations.  FAO's expertise in investment-related policies and project formulation for investment, together with EIB's access to international capital markets and prowess in devising robust investment operations, are natural complements to one another.

This partnership builds upon an existing relationship between FAO’s Investment Centre and EIB, most notably through the collaboration and information-sharing platform EastAgri.

"If we can combine FAO's local experience and know-how with our investment capabilities and technical expertise to better channel much needed finance to benefit both food supply and entrepreneurship, then why should we not do that?" added EIB Vice-President, Pim van Ballekom.

The agreement, announced during the Third International Conference on Financing for Development, further marks the engagement of the EIB in the agribusiness sector and, for FAO, a partnership with the world's largest multilateral Financial Institution.