European Investment Bank in the Agricultural sector in Africa – challenges and opportunities Counter Balance: Challenging the European Investment Bank Counter Balance's mission is to make the EIB an open and progressive institution delivering on EU development goals and promoting sustainable development to empower people affected by its work. Desislava Stoyanova, Brussels 2 nd February 2009

The EIB as an example for political regulation under neoliberalism Counter Balance members: Les Amis de la Terre (France) urgewald,Weed (Germany) Campagna per la Reforma de la Banca Mondiale (Italy) BothENDS (Netherlands) Breton Woods Project (UK) Bankwatch Network (Central and Eastern Europe)

The EIB – Basic facts Set up in 1958 under the Treaty of Rome House bank of the EU; independent status Owned by 27 EU member states Active in more than 130 countries all over the world Headquarters – Luxembourg with increasing number of regional offices (5 in ACP; Warsaw and Bucharest in CEE region) Transport, energy, water, industry, banking, R&D, oil, mining and gas, telecommunication

Other important data: Subscribed capital – million Euro Borrowing and floating bonds on capital markets; AAA rating Approved loans in 2007 – million Euro, of which 756 million for ACP countries The EIB – Basic facts

EIB Activities Outside the Union External Lending Mandate ( ) billion euro of Community guarantees compared to 20.7 for the period In the ACP countries: Objective: 'reducing and eventually eradicating poverty consistent with the objective of sustainable development and the gradual integration of ACP countries into the world economy

The Cotonou agreement (2000) governs EIB loans to the 79 African, Caribbean and Pacific (ACP) - manages the Cotonou Investment Facility (IF), a risk- bearing Instrument established in June ( ) for private sector (2.2 bln EDF/EU bln EIB) and 187 mln EDF/EU interest rates subsidies ( ) 1.1 bn EDF/EU bn. EIB and 400 mln. EDF/EU interest rates subsidies and TA - EU-Africa Infrastructure Partnership ( mln) - ACP-EU Water Partnership EIB Activities Outside the Union

EIB as the EU policy bank EU consensus on development – call for synergies of EIBs lending ECJ judgement, November 2008 (case C-155/07 ): - TITLE XX of the EC Treaty, which deals with DEVELOPMENT COOPERATION : 1. Community policy in the sphere of development cooperation, which shall be complementary to the policies pursued by the Member States, shall foster: the sustainable economic and social development of the developing countries, and more particularly the most disadvantaged among them, the smooth and gradual integration of the developing countries into the world economy, the campaign against poverty in the developing countries.

Outside the EU EIB lending is based on EU external cooperation and development policies. Development: Africa, Pacific and Caribbean (ACP); Republic of South Africa Lending under these mandates focuses on: - Private sector development - Infrastructure development - Security of energy supply - Environmental sustainability Mainly for European companies... The EIBs lending priorities outside the EU

EIB in practice: support for the Agricultural sector in Africa

1,000,000Moramba Aquaculture Madagascar1999 Construction of shrimp farm and packing facility at Baly Bay on north-western coast 7,000,000Aquamas Aquaculture Madagascar2000 Finance for replanting of existing citrus Groves 8,800,000Belize Citrus Sector Operation Belize2000 Construction of plant-breeding and propagation facilities in Thika, east of Nairobi 4,400,000Kenya GeraniumsKenya2001 Modernisation and strengthening of the competitiveness of three banana plantations in western Cameroon 8,000,000Plan Bananes Cameroon2002 Production and export of roses2,000,000Fabulous FlowersBorswana2004 Expansion of shrimp farm in Mahajamba delta on north-west coast 5,000,000Aqualma IIIMadagascar2005 Extension of seafood preparation, freezing and packing plant 2,500,000Seph-NouadhibouMauritania2005 Rehabilitation of approximately hectares of poor quality tropical hardwood plantation and replacement of ageing Equipment 3,500,000Kolombangara Forestry Project Solomon Islands2006 DescriptionIn euroProjectCountryYear

EIB in practice: support for the Agricultural sector in Africa -Private sector development? – How to develop the African private sector and which private sector in agriculture -Global loans – financing SMEs through financial intermediaries Where does the money go? Which financial institutions needed for supporting family agriculture and rural development -Financing for large infrastructure projects and agriculture? Support for de-financialise agriculture and not export-oriented

Can the Bank show initiative? Can the EIB use other instruments to show true pro- development approach? -Support the development of the local market – infrastructure not export-oriented -Support small companies and cooperatives -Provide lending on concessional terms with a higher grant component - not to support European private sector

Counter Balance: Challenging the European Investment Bank Thank you!