EIB and European Commission have signed € 4 billion agreement to boost private sector investments in African, Caribbean and Pacific countries
The European Investment Bank (EIB) and the European Commission have signed agreements worth € 4 billion to support businesses in African, Caribbean and Pacific (ACP) countries until 2027.
The € 4 billion support consists of a Guarantee Agreement that will mobilise up to € 3.5 billion in lending and a € 500 million Trust Fund contribution.
The agreement marks an important step in rolling out the European Union’s (E.U.’s) Global Gateway strategy and achieving development impact by enabling the EIB to enhance not only public but also private investments in key areas like digitalisation, climate and energy, transport and health in partner countries.
Speaking on the occasion, the President of EIB – Werner Hoyer said, “The agreement signed today will enable the European Investment Bank to fully contribute to the Global Gateway strategy. The EU guarantee will allow us to scale-up our support for national priorities in Africa, Caribbean and the Pacific regions, in full collaboration with our partners from Team Europe and the African Union. Backing the private sector is key to foster a green and inclusive growth in ACP countries and globally.”
Taking it to twitter, the European Investment Bank tweeted,
Backing the private sector is key to foster #SustainableDevelopment worldwide.
— European Investment Bank (@EIB) February 28, 2023
The €4bn agreement signed w/ @EU_Partnerships will boost private sector investments in African, Caribbean and Pacific countries & support the #GlobalGateway strategy. https://t.co/vUnxouZyX2 #EIBForum pic.twitter.com/VDWquyaHtI
The agreement consists of 2 parts. First is the Guarantee Agreement under the European Fund for Sustainable Development Plus (EFSD+), established by the NDICI – Global Europe. It will enable the EIB to provide up to € 3.5 billion loans on favourable terms to create jobs and opportunities, particularly for women and youth, and support green and digital transitions in E.U. partner countries, in line with Global Gateway.
Second part is an E.U. contribution of € 500 million to the ACP Trust Fund, established and managed by the EIB, to enable high impact operations, which would otherwise not be possible. It will support small renewable energy power plants in areas with no grid connection. These will enable autonomous electricity supply, improve people’s livelihoods, and decrease dependency from fossil fuels and rising energy prices.
The agreement adds to the € 26.7 billion Guarantee Agreement for public lending that the E.U. and the EIB signed in May 2022. New public investments rolling out Global Gateway are already underway. This includes for example an EU-covered EIB loan on urban mobility for Senegal, signed separately at the EIB Forum as part of the Team Europe Initiative on Green Economy in Senegal, which seeks to support sustainable and digital cities.
