Sharing expertise – Our partnerships
To maximise the impact of our projects, and to explore new ways of doing things and new sectors to target on the road to the 2030 Agenda, the Bank is partnering with several organisations to combine our financial know how with their technical expertise and local knowledge. Taken together, we are boosting our capabilities in several sectors entirely relevant to the UN Sustainable Development Goals.
The EIB and the United Nations Industrial Development Organisation (UNIDO) have agreed to enhance our cooperation and to share good practices and expertise in relevant sectors, most notably resilient infrastructure, sustainable industrialisation and innovation.
This will enable us to work together to help achieve several of the SDGs, amongst them number 1 (No Poverty), Number 8 (Decent Work and Economic Growth), Number 9 (Industry, Innovation and Infrastructure), Number 12 (Responsible Consumption and Production) and Number 13 (Climate Action).
The EIB and UNIDO have explored some potential projects in industrial value chain support in Africa, including the Modjo Leather City industrial part in Ethiopia.
The Bank is working with the Food and Agriculture Organisation of the United Nations (FAO). This makes sense for both parties, as we look to expand investment in agriculture and food security, notably in terms of private sector companies, value chains, small businesses and entrepreneurs, and FAO looks out for food security and sustainable job creation in the field of agribusiness.
Our organisations can work together on relevant projects in the future, where technical assistance and expertise could be required to carry out capacity building on the ground, including the promotion of agribusiness to rural populations, young people and women, as well as bringing their ideas to bear on development.
Through working together, we help achieve SDGs Number 1 (No Poverty), Number 2 (Zero Hunger), Number 5 (Gender Equality), Number 8 (Decent Work and Economic Growth) and Number 15 (Life on Land).
The crucial importance of creating jobs in rural areas is something that the EIB is approaching pro-actively. We have expanded cooperation with the International Fund for Agricultural Development (IFAD), reflecting the importance of agribusiness in emerging economies, both now and in the future.
This reflects the premium placed on small holder farmers, as shared by both the EIB and IFAD, and we are working together on a project which will support them.
The United Nations Development Programme (UNDP) operates in many countries, supporting sustainable development, the eradication of poverty the advancement of women and good governance amongst the ultimate aim of achieving the SDGs. The EIB and UNDP are working together towards this common agenda, in the context of the “From Billions to Trillions” MDB action plan.
The thematic focuses of this partnership are climate change response, responding to crisis and post-crisis situations, the migration crisis and promoting inclusive markets and entrepreneurship.
Technically, our organisations are targeting Urban Development (SDG Number 11 Sustainable Cities and Communities), Sustainable Energy (SDG Number 7, Clean Energy), Water Management (SDG Number 3, Good Health and Wellbeing and SDG 6, Clean Water and Sanitation) and Rural Development.
The United Nations Office for Project Services (UNOPS) supports the successful implementation of UN partners’ peace-building, humanitarian and developmental projects around the world. The EIB can work with UNOPS on key projects to improve lives across the world, and the ACPs are no exception to this.
This partnership will enable us to overcome ongoing challenges to sustainable development, most notably in fragile economies, as well as climate change and, something which is essential, increasing the capacity of the private sector to drive growth and change. Put together, the EIB and UNOPS can catalyse further investment in projects where investors could be reluctant to get involved.
SDG Number 1 (No Poverty), Number 8 (Decent Work and Economic Growth), Number 10 (Reduced Inequalities), Number 13 (Climate Action) are all targets, with an indirect benefit to Number 16 (Peace, Justice and Strong Institutions).
European Commission and European External Action Service
As a European institution, the EIB partners with the European Commission and European External Action Service (EEAS) to promote EU development policies abroad. The Bank will continue to play a significant role in the current programming exercise in ACP countries and regions, so contributing to the implementation of the Agenda for Change, the EC Private Sector Development strategy and the New European Consensus on Development.
The new consensus is especially important at this moment as it is adapted to include Agenda 2030 and the 17 Sustainable Development Goals, finding a balance between the economic, social and environmental dimensions of sustainable development.
This is structured around the five core themes of the Agenda 2030, the “5 Ps”: People, Planet, Prosperity, Peace and Partnership.
Having been present in Africa for over five decades now, the EIB is in a good position to help European companies that are interested in investing in the African market, as well as the Caribbean and Pacific markets. Africa is notably hungry for investment, as are the Caribbean and the Pacific, and the EIB is raising awareness of this around the European Union.
The internationalisation of European companies is a priority for the EIB, and we are stepping up efforts to increase corporate lending activities to these entities which have ACP region in their sights. The EIB now has a division dedicated to corporate lending in these circumstances. We can be confident that these operations will increase over the coming years.
Mutual Reliance Initiative
To enhance the effectiveness of development cooperation, we are one of the partners in the Mutual Reliance Initiative (MRI), which sees the Bank join forces with France’s AFD (Agence Française de Développement) and Germany’s KfW Development Bank. This initiative enables the promoters of investment projects co-financed by the three development institutions in EU partner countries to benefit from a larger project finance capacity through a structured division of labour, in which one acts as lead financier.
In the ACP countries, since completion of the pilot phase, 17 new operations were started applying the MRI approach. Three had to be withdrawn as the investment project stalled or the lenders’ financing approach changed. The EIB is involved in 11 of the remaining 14 operations. The Bank is Lead Financier in four of these, including water sector projects in the Seychelles, Tanzania and Zambia, as well as an electricity project in Mozambique.
Overall the MRI contributes to building stronger ties with our partners AFD and KfW, and promoting more effectiveness of European finance outside the EU in line with the EU’s external policies. It clearly facilitates the relationship with project promoters and contributes to lightening their tasks, notably in the area of procurement supervision. Ways of deepening the delegation of tasks and responsibilities in order to make the MRI approach more efficient, and to scale up the initiative, are being explored.
Sustainable Energy for All (SE4All)
The SE4All Initiative calls for universal access to energy, doubling the rate of energy efficiency and doubling the share of renewables, and is represented in SDG 7. The EIB has several means to support this, and is actively engaged in EU efforts to do precisely that. The first of these is the EU-Africa Infrastructure Trust Fund.
The Global Energy Efficiency and Renewable Energy Fund (GEEREF) is a fund-of-funds which provides equity to ultimately benefit smaller scale renewable energy projects in developing countries. Specialist managers operating in ACP countries are eligible for GEEREF investment, while it is anticipated that the whole fund will be allocated by the end of 2017. The demonstrable multiplier effect of GEEREF is such that a larger successor, GEEREF NeXt, is now in the pipeline.
The EIB has also developed a number of innovative financing initiatives designed to address specific gaps in the energy market and constraints to private sector investment in meeting SE4All objectives.
The Africa Energy Guarantee Facility is being designed to respond to the lack of adequate risk-mitigation products and will leverage insurance, re-insurance and banking sector expertise for eligible energy projects in Africa. This is expected to be approved in 2017.
More information about EIB’s partners