EIB welcomes new 7 year mandate for supporting investment in Africa, Caribbean and Pacific countries
- Release date: 10 July 2013
- Reference: 2013-107-EN
Engagement by the European Investment Bank to support long-term investment in Africa, Caribbean and Pacific countries over the next seven years will be strengthened following agreement by the ACP – EU Council of Ministers. European Investment Bank President Werner Hoyer used the annual visit of Ambassadors of ACP partner countries to the bank’s Luxembourg headquarters this week to announce an expected 25% increase in lending to the region under the ACP Investment Facility and reaffirmed the commitment of Europe’s long-term lending institution to ensuring that infrastructure projects, private sector engagement and regional integration initiatives in ACP counties can benefit from EIB involvement.
“The European Investment Bank is fully committed to supporting long-term investment in ACP states, especially in the private sector. Sharing sector experience over the last 50 years of ACP engagement has ensured successful project implementation and enabled long-term investment that has improved millions of lives and boosted economic development. The EU Bank is the only international financial institution engaged both across Europe and ACP states and we look forward to increasing effective engagement over the years to come through lending, blending and advising. The EIB welcomes the Agenda for Change, the new blueprint for EU development policy.” European Investment Bank President Werner Hoyer.
Approval of EU development cooperation in ACP countries for the period 2014 – 2020 by the ACP – EU Council of Ministers recognises the combined contribution of the ACP Investment Facility and EIB lending for ACP projects using the bank’s own resources. Agreement of the 11th European Development Fund will provide an additional EUR 500 million to be used for the ACP Investment Facility, a special revolving and risk-bearing fund for private sector investment and a grant envelope of EUR 634 million for interest rate subsidies and technical assistance complemented by a further EUR 2.5 billion to be made available by the European Investment Bank on its own resources guaranteed by the EU Member States for lending primarily for public sector projects.
The decision by the EU Council to increase funding for the ACP Investment Facility will enable increased support for private sector investment by the EIB managed revolving fund. Since 2003 lending through the ACP Investment Facility has increased significantly to an average of EUR 450 per year and it is expected that lending under the Investment Facility will reach a total of EUR 9 billion by the end of 2020 representing almost three times the amount of the original endowment.
“The European Investment Bank will build on its strong track record demonstrated over the last 50 years of supporting key infrastructure investments which are prerequisite for private sector development and improving regional integration. Support to the private sector and in particular small and medium enterprises will remain at the core of EIB’s activities in the ACP countries. We are grateful for the trust put into us for pursuing our action and delivering projects with a positive impact on the populations of the ACP countries and look forward to making an increased and more effective contribution to supporting long-term investment in ACP partner countries in the next seven years.” said Pim van Ballekom, European Investment Bank Vice President responsible for ACP lending.
Over the last ten years the European Investment Bank has provided nearly EUR 7 billion in long-term loans for projects in ACP countries. This year marks fifty years of European Investment Bank engagement in ACP partner countries and 10 years of lending through the ACP Investment Facility. The 11th European Development Fund will cover the period 2014 to 2020 and defines overall EU engagement in ACP partner countries.