Policy Updates

On June 2, 2025, IFAD president President Álvaro Lario called on Germany’s leadership as crucial to rekindle global solidarity amid rising inequality, conflict, and climate challenges at the Hamburg Sustainability Conference, meeting with the BMZ to reinforce IFAD’s partnership with Germany, focusing on tackling hunger, poverty, and youth unemployment in rural areas, where 80% of the world’s poorest reside.

Despite increased global wealth, acute hunger has tripled since 2018, now affecting nearly 300 million people in 53 countries. Climate extremes and conflict are rising, yet development funding falls short by an estimated US$4 trillion (EUR3.7 trillion) annually. Lario urged Germany to catalyze private sector investment and help close the development gap.

Lario emphasized that investing in small-scale rural producers is a strategic move for global stability and food security, not charity. With 1.2 billion young people seeking work—90% in developing countries—agriculture and food systems could unlock over US$4.5 trillion in new business yearly and create 120 million jobs, turning migration into a choice, not a necessity.

On June 2, 2025, KOICA and GOEIC signed a US$11 million agreement to create a digital platform aimed at improving trade facilitation in Egypt, entitled “Establishment of the Digital Platform for risk-based inspection and tracking to facilitate trade in Egypt,” which will run from 2025 to 2029.

The platform will streamline import cargo inspections, enhance competitiveness, and support Egypt’s digital transformation goals. Key features include risk-based inspection systems, a laboratory information management system, and a market surveillance system.

The agreement was signed in Cairo, attended by officials from KOICA, GOEIC, and Egypt’s Ministry of Planning, Economic Development, and International Cooperation. KOICA’s Deputy Country Director stated the project will foster economic growth and sustainability by modernizing inspection and customs clearance, reducing administrative barriers, and ensuring compliance with global standards.

Egypt’s Minister of Planning, Economic Development, and International Cooperation Dr. Rania Al-Mashat highlighted the project’s role in leveraging Korean grant resources to support digital transformation and inclusive development. The initiative aligns with Egypt's commitments under the WTO Trade Facilitation Agreement and aims to accelerate and simplify conformity assessment procedures at ports, helping Egypt reach international benchmarks for trade efficiency.

On May 30, 2025, officials from the US government announced the termination of a US$258 million program for HIV vaccine research at Duke University and the Scripps Research Institute.

A senior agency official stated that NIH leadership reviewed the consortia for HIV/AIDS vaccine development and immunology and decided not to support its continuation, stating that it will focus on using existing approaches to battle HIV/AIDS.

While ongoing clinical trials based on the work may continue, ending the programs indicates that no new candidates will enter trials in the future.

Public health experts have criticized that the cuts will hinder progress against HIV. Since 2010, new HIV infections have decreased steadily, but in 2023, the WHO still reported 1.3 million new cases, of which 120,000 were found in children.

On May 30, 2025, JICA signed the Development Policy Loan which provides JPY60 billion (US$393 million) with Bangladesh to support economic reforms and climate resilience, bolstering Bangladesh's economy amid global challenges like inflation and climate-induced disasters.

The 30-year loan, with a 2% annual interest rate and a 10-year grace period, aims to improve the business environment and governance, and implement climate measures. Co-financing includes US$600 million from the ADB and US$500 million from the World Bank.

Additionally, the Human Resource Development Scholarship Project grants JPY606 million (US$4million) to fund advanced degrees for young Bangladeshi officials in Japan, enhancing administrative capacity and bilateral ties.

On May 30, 2025, GGF and Sida have formed a partnership to expand green lending in the Western Balkans and the EU’s Eastern Neighborhood. Sida has issued an unfunded guarantee of EUR60 million (US$65million), enabling GGF to provide EUR120 million (US$130 million) in loans to private businesses and households through financial intermediaries and direct company lending.

This support targets urgent investments in decarbonization, renewable energy, and energy efficiency. The partnership marks GGF’s first risk-sharing guarantee, enhancing its ability to back green initiatives and prepare financial institutions and businesses for upcoming EU market opportunities.

GGF was initiated as a public-private partnership by EIB and KfW, with backing from the EU, Germany’s BMZ, and other international investors. Sida’s involvement bridges the investment gap in high-risk markets and complements Swedish ODA and EU programs.

This collaboration is a major milestone for green finance in Southeast Europe, the Caucasus, Middle East, and North Africa, supporting sustainable energy solutions and emissions reduction.

On May 29, 2025, the US State Department informed Congress of an updated reorganization that would slash staff by 18%, eliminating 3,448 jobs as well as key human rights and refugee offices.

Positions eliminated include several special envoys and the undersecretary for civilian security, democracy, and human rights. Over 300 bureaus and offices will be affected, with regional bureaus taking over day-to-day decisions on foreign assistance as well as the duties of functional or thematic bureaus and offices.

The department also introduced a new Office of Natural Rights to emphasize traditional ‘Western values’ and counter perceived free speech issues in Europe and other ‘developed’ nations.

According to the organizational chart, US President Donald Trump would appoint a new Undersecretary of State for foreign assistance and humanitarian affairs, who would also oversee disaster response. The appointee would need to be approved by the Senate.

On May 28, 2025, Ethiopian Prime Minister Abiy Ahmed concluded a successful working visit to Italy, meeting with Italian Prime Minister Giorgia Meloni and Pope Leo XIV, to discuss enhancing collaboration in education, economic reforms, and energy development, strengthening bilateral ties and securing significant development support.

The visit resulted in the signing of agreements in critical areas such as green development, urban infrastructure, and macroeconomic reform, reflecting Italy's continued support for Ethiopia's growth.

Additionally, the Vatican reaffirmed its commitment to supporting Ethiopia's educational development, highlighting the strengthening of bilateral and multilateral engagements.

These developments underscore the deepening partnership between Ethiopia and Italy, with a shared focus on sustainable development and regional stability.

On May 27, 2025, the UK FCDO celebrated milestones of the LSAP in Belize, funded under the UKCIF, where the UK US$32million to the Coastal Road Upgrading Project aimed at boosting economic resilience and creating sustainable livelihood opportunities in Gales Point and Mullins River villages.

Achievements include formalizing 80 MSMEs, surpassing the target of 40. Of these, 43 are female-owned and 37 male-owned. Additionally, 72 participants received entrepreneurial development training, with 59 earning certification. A Buy Belizean exhibition featuring 14 MSMEs is scheduled for June 14, 2025, in Dangriga Town.

The initiative reflects a strong commitment to inclusive economic development, job creation, and community empowerment, showcasing the deep engagement of local communities and the success of UK -Belize partnerships.

On May 27, 2025, BOND highlighted the UK government's opportunity to address global debt challenges as a countermeasure to the ODA cuts which are set to drop to 0.3% of GNI by 2027, and urged action on debt to mitigate the impacts of reduced funding and growing climate and development crises.

The organization emphasized the UK’s pivotal role, given its jurisdiction over sovereign debt contracts, and proposed reforms like a UN debt framework convention and improved transparency. It also advocated for legislative updates to compel private creditor participation in debt relief and measures to prevent liquidity crises in LICs.

BOND underscored that action on debt could restore fiscal space for developing nations, enabling investments in social services, climate adaptation, and economic development, while reinforcing the UK’s global leadership and commitment to poverty reduction.

On May 27, 2025, Norway formalized an agreement with Estonia under the EEA and Norway Grants, allocating EUR72 million (US$77 million) to support Estonia’s social and economic development. Norway will contribute 97% of the funding, with Iceland and Liechtenstein providing the remainder.

The initiative focuses on several priority areas, including the green transition, crisis prevention, health, and business development. It also aims to enhance Estonia’s physical and digital infrastructure, particularly for preserving cultural heritage during crises. Norwegian agencies such as the Directorate for Civil Protection and Innovation Norway will partner with Estonia to implement projects in energy efficiency, sustainable fisheries, and genetic medicine.

This agreement underscores Norway’s commitment to reducing social and economic disparities in Europe while fostering stronger bilateral ties with Estonia.