Presentation on theme: "1 European Investment Bank II. The EIB and Africa."— Presentation transcript:
1 European Investment Bank II. The EIB and Africa
2 European Investment Bank From North to South … The FEMIP Mandate (Facility for Euro-Mediterranean Investment and Partnership) (Northern Africa) The ACP-EU COTONOU PARTNERSHIP AGREEMENT (Sub-Saharan Africa except RSA, as well as Caribbean and Pacific ACP countries) The RSA Mandate
3 European Investment Bank FEMIP mandate FEMIP brings together the whole range of EIB instruments in the Mediterranean partner countries (MPCs)* Its objective is to support the modernisation and opening-up of MPCs’ economies Two priorities: (i) Private sector support and (ii) Creation of an investment-friendly environment * Algeria, Egypt, Gaza/West Bank, Israel, Jordan, Lebanon, Morocco, Syria and Tunisia. EIB lending in Northern Africa EUR 8.5 bn invested since 2002, of which EUR 6 bn in Egypt, Tunisia, Morocco and Algeria
4 European Investment Bank FEMIP financing facilities NameType of financingAmount in EURPeriodObjective ENP-MED MandateMandate conferred by the Member States, from the Bank’s own resources 8.7bn1 February 2007- 31 December 2013 Contributing to the development of the private sector and infrastructure in the Mediterranean partner countries Mediterranean Partnership Facility II Own resources2bn2007-2013Supporting well-defined priority projects of particular relevance to both the EU and the partner countries (regional development, sectoral policies, environment, support for EU enterprises, etc.) Risk capital and technical assistance envelope   EU budget128m2007-2010Fostering the creation or strengthening of equity and quasi-equity resources for SMEs in the Mediterranean partner countries Technical Assistance Fund EU budget105m2003-2009Helping the partner countries and private promoters to improve the preparation, management and supervision of their investment projects FEMIP Trust FundContributions from the Member States and the European Commission 34.5mOperational since 2005 Gaining a deeper understanding of the region’s major economic challenges by financing technical assistance and sectoral studies. Supporting the private sector by providing equity and quasi- equity finance for innovative operations or operations with an unusual risk profile.
FEMIP lending figures FEMIP is now the leading investor in the Med region 5 EUR m n Energy n Transport n Telecoms n Industry n Environment n Human Capital n Credit Lines n Risk Capital Algeria 318m Morocco 1,665m Tunisia 1,814mEgypt 2,284m October 2002 to December 2008 EUR 8,528 m * 71% of total FEMIP funding went to African projects; * about 85% for infrastructure projects – transport, energy, water and environment
7 European Investment Bank Cotonou Subsidies – Interest Rate Under certain conditions, ordinary loans and guarantees can be extended on concessional terms General rule applied: - Interest rate subsidy: maximum 3 % - Final rate of loan: cannot be less than EIB reference rate, including mark-ups ELIGIBILITY:ELIGIBILITY: Infrastructure projects, a prerequesite for private sector development in: Post-conflict countries, Least developed countries and Post-natural disaster countries Flexibility can be applied in the case of HIPC countries Public/private sector projects which: Involve restructuring in the context of privatisations Give rise to demonstrable social and environmental benefits By mid-2009, a total of EUR 129 m committed in favour of 35 projects
8 European Investment Bank Cotonou Technical Assistance EIB technical assistance operations aim to: Enhance project quality and success rate; Increase the efficiency of the EIB’s investment activities; Complement other EIB financial products. Technical assistance grants cover the whole project cycle from project identification to project completion Mid-2009, 32 ongoing Cotonou TA operations (ie contracted out) for a total of EUR 16 m.
9 European Investment Bank EIB and the Cotonou Agreement 6 years down the road (as of 31 July 2009): Total signatures of EUR 3 351 m Of which: EUR 2 223 m under the IF EUR 1 108 m under EIB own resources 76 % of the portfolio relate to private sector operations 35 % of total investments went to African infrastructure Close to 80 % of the portfolio relate to Africa
10 European Investment Bank EU-Africa Infrastructure Trust Fund not an institution a financial instrument Part of EU efforts to intensify its Aid to Africa EU-Africa Infrastructure Partnership Contributing to achieving the MDGs In line with Paris Declaration on Aid Effectiveness African ownership Alignment with national/regional priorities Donor harmonisation: working together & blending resources
11 European Investment Bank EIB lending in South Africa EUR 940 m for infrastructure projects over the period 1995-2008, equivalent to 51 % of cumulative lending EUR 900 m to be committed over the period 2007- 2013, of which already EUR 442 m committed at the end of July 2009 EIB is supporting South Africa’s economic development since 1995 – EUR* 2 bn cumulative lending at the end of July 2009 * Loans can be extended in ZAR
12 European Investment Bank EIB lending in South Africa (2) Close Cooperation with the European Commission: Risk Capital Facilities I and II (EUR 55 +50 m) New Facility (GEFSA) under consideration Focus: equitable & sustainable economic growth employment creation, innovation & capacity development sustainable provision of equitable access to social services modernisation of the economy integration of South Africa into the world economy