EU investment plan want to mobilise €44 billion in private sector investment in Africa

  • 10th July 2017
  • by secretary
6 July 2017. The EU scheme aiming to mobilise €44 billion in private sector investment in Africa and the EU neighbourhood was approved by the MEPs. As part of the European External Investment Plan, the new European Fund for Sustainable Development (EFSD) wants to encourage €44 billion in private investments in fragile states by offering a combination of grants, loans and financial guarantees worth €3.3 billion to boost jobs, growth and stability, thus addressing the root causes of migration.

In recent talks on the operating rules of the EFSD, MEPs persuaded EU ministers to focus on poverty, jobs, climate and small enterprises by creating decent jobs and offering particular support to young people, women and small businesses.

“This new innovative instrument is a clear signal that the EU is indeed serious about sustainable growth and addressing the root causes of migration. By improving the business climate and attracting private investments where they are needed most, we can help to create better living conditions in our partner countries”, said co-rapporteur Eduard Kukan (EPP, SK).

EFSD resources are made available thanks to the mid-term review of the 2014-2020 EU long-term budget plans and to the European Development Fund (EDF) reserve. The new fund will be composed of two regional platforms: one for Africa and the other for the EU Neighbourhood (south and east). It will function as a “one stop shop”, offering access to existing EU blending facilities (when EU grants are combined with loans or equity from public and private financiers), coupled with a new, additional guarantee for public and private investors. The EFSD Guarantee is expected to have a cash provision of €750 million including €350 million from the EU budget and €400 million from the EDF. The EFSD will also combine resources from two existing blending facilities – €2.6 billion from the Neighbourhood Investment Facility and Africa Investment Facility.

Text of the amended EFSD Regulation (click on 05.07.2017)
Video recording of the debate (click on 05.07.2017)
Press release on informal agreement with EU ministers (28.06.2017)
EP Research Briefing: European Fund for Sustainable Development (February 2017)