WTO and Partners Launch EIF Phase Three to Boost Trade in LDCs by 2031

At a high-level side event during the 4th International Conference on Financing for Development (FfD4) in Seville, Spain, WTO Director-General Ngozi Okonjo-Iweala called for mobilizing strong global partnerships to bolster trade capacities in least-developed countries (LDCs). The event, held on 30 June 2025, marked a pivotal moment for the Enhanced Integrated Framework (EIF), as leaders unveiled the vision for its third phase—EIF Phase Three—set to begin in October 2025.

Co-organized by Djibouti, Finland, and the EIF Executive Secretariat, the event gathered ministers, donor governments, development organizations, and private sector actors to align efforts around a shared goal: using trade as a tool for inclusive and sustainable development in the world’s most vulnerable economies.

EIF Phase Three: A Renewed Commitment for Trade-Driven Development

EIF Phase Three will span from 2025 to 2031, aiming to raise USD 200 million in support of LDC trade and export growth. This next phase seeks to catalyze transformative change through:

• Targeted technical assistance

• Policy support for trade-related reforms

• Institutional strengthening

• Market access facilitation for small producers and entrepreneurs

Director-General Okonjo-Iweala underscored the urgency of scaling efforts amid rising development needs and tightening global aid flows. She stated, “The EIF has gone from strength to strength, enabling LDCs to expand exports and improve livelihoods. We must keep this momentum going.”

She shared the example of Sittina Farate Ibrahima, an entrepreneur from Comoros, whose biocosmetics business has flourished with EIF support. “Today, 80% of her products are exported to Europe. This is what Aid for Trade to LDCs is all about,” she emphasized.

Donor Pledges Fuel Phase Three Momentum

Multiple donors announced new funding commitments during the event, marking a strong start to EIF Phase Three:

• Sweden: SEK 75 million (~CHF 6.3 million)

• Denmark: DKK 20 million (~CHF 2.5 million)

• Norway: NOK 12 million (~CHF 0.9 million)

• France: EUR 300,000 (~CHF 0.3 million)

• Liechtenstein: CHF 50,000

• Finland (earlier pledge): EUR 2.5 million (~CHF 2.3 million)

• United Kingdom: GBP 400,000 (~CHF 0.4 million)

These contributions are expected to help kickstart EIF Phase Three, laying the foundation for broader pledges at a follow-up event during the WTO Public Forum in September 2025.

Voices from the Global Partnership

Ngozi Okonjo-Iweala, WTO Director-General:

“We need partnerships that match ambition with action. Trade can lift communities—but only if we equip LDCs with the tools and access they need.”

H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance, Djibouti:

"EIF Phase Three comes at a critical time. For countries like mine, EIF has been not only a financier but a catalyst for inclusive economic transformation."

H.E. Ville Tavio, Minister for Foreign Trade and Development, Finland:

"Trade, when matched with targeted support and local ownership, can unlock lasting development impact. Finland is proud to continue supporting the EIF."

The event drew wide participation from both least-developed countries and development partners, including representatives from Germany, the United Arab Emirates, and UNCTAD Secretary-General Rebeca Grynspan, who delivered the closing remarks.

Strategic Goals for EIF Phase Three

The next phase of the EIF will be focused on:

• Scaling up export support for agriculture, services, and digital trade

• Promoting women’s economic empowerment and youth entrepreneurship

• Accelerating digital trade readiness in LDCs

• Reducing trade-related climate vulnerabilities

• Supporting regional trade integration and alignment with WTO rules

Importantly, Phase Three is designed to deliver a “catalytic impact” by aligning trade assistance with national development priorities and helping countries integrate trade into broader financing for development strategies.

The Bigger Picture: Aid for Trade and Global Equity

EIF is the only global Aid for Trade initiative exclusively dedicated to LDCs, and since its launch, it has supported:

• Over USD 1 billion in LDC export value

• Thousands of microenterprises, farmers, and producers

• Trade policy reforms in dozens of countries

As the world faces compounding crises—economic inequality, climate change, and geopolitical shifts—programs like EIF offer tangible mechanisms to ensure no country is left behind.

Looking Ahead: Geneva Pledging Conference in September

A follow-up high-level pledging event is scheduled for September 2025 during the WTO Public Forum in Geneva, where countries will reconvene to further align on funding and policy priorities. This event will also help prepare the ground for the 14th WTO Ministerial Conference, where Phase Three will be officially launched.

A Springboard for Inclusive Trade Transformation

EIF Phase Three represents a bold vision for empowering LDCs through trade—backed by funding, partnerships, and political will. As countries like Djibouti, Guinea, Comoros, and others strive to diversify exports and build resilience, EIF stands ready to support inclusive, climate-smart, and gender-equitable trade development.

With the support of a growing coalition of donors and partners, EIF Phase Three promises to be a turning point for LDCs in leveraging trade for sustainable prosperity.