1. Supporting Investment in the Mediterranean Region
Egypt Investment Forum
3-4 February 2018
European Investment Bank

2. Investing in Europe’s Neighbourhoods’ growth
The EIB: the EU Bank
Shareholders: 28 EU Member States
Long-standing partner of the Mediterranean Region covering more than 35 years.
Investing in Europe’s Neighbourhoods’ growth

3. European Investment Bank
The EIB at a glance
Provides long-term funding to finance projects;
Non-profit maximizing institution.
901 projects were approved in 2017, in over 160 countries;
EIB Group financing amounting to EUR 78bn in 2017
European Investment Bank

4. EIB activity outside the European Union
In the framework of the Economic Resilience Initiative (ERI) EUR 13bn investments for the Southern Neighbourhood region from 2014 till 2020.
In the Mediterranean Region the EIB Supports:
Upgrading of socio-economic infrastructure in sectors such as transports, energy, water, environment, IT, health and education;
Development of the local private sector, (including Corporates and SMEs) by promoting technology transfers, trade and encouraging FDI;
Environmental sustainability and addressing the effects of climate change (renewable energy, energy efficiency and climate adaptation projects).
European Investment Bank

5. Southern Neighbours are key partners
Total signatures from 2007 to date – EUR 16.5 bn
of which EUR 1.9 bn in 2017
European Investment Bank

6. The EIB toolkit for the Neighborhood
Lending
Blending
Advising
Loans – direct (over EUR 25m) and intermediated (for smaller projects of SMEs and/or Mid-Caps via local financial intermediaries)
Guarantees
Subordinated loans
Quasi-equity
Equity
Investment Grants
Interest Rate Subsidies
Financial Instruments
Technical Assistance Grants
Including higher risk projects (e.g. InnovFin for innovation)
To support project preparation, evaluation and implementation
An essential and integral component of many projects

7. Where do we stand in Egypt
Exposure 4.7 bn EUR
Pipeline 2 bn EUR
* at 31st December 2017
European Investment Bank

8. A need to Transform the Economy
Large scale creation of quality jobs is required with a shift of labour towards more productive industries
But
Private sector in the MED region lack dynamism
Entry and exit sector are low
Firm are often disconnected from the financial sector
Only few industries are integrated in global value chains
Transformation is required
European Investment Bank

9. How to address this Challenge?
Allowing the private sector to operate better
Macroeconomic stability
Removal of distortions
Improving the business environment
Also
Need for a focused job creation strategy
The government needs to identify a number of sectors with high employment potential and remove barriers selectively
≠ Protect domestic incumbents
European Investment Bank

10. How can IFIs/DFIs contribute?
Act as catalysts to
Reinforce financial infrastructure through loans, investments and support to policy reform
Help access to finance in specific subsectors
Partial portfolio guarantees
Advisory to MSMEs or financed Institutions
Incubators and dedicated funds
Let’s not forget
Finance FDIs… and help create local value chain
Support economic infrastructure
European Investment Bank

11. European Investment Bank
Thank You! شكرا!
European Investment Bank