The FEMIP Trust Fund (FTF)
FTF is an "operational think tank” exploring new areas in which the Facility for Euro-Mediterranean Investment and Partnership (FEMIP) can operate. Established in 2004, it is a multi-donor, multi-purpose and multi-sector fund whose main objective is to support private sector development in the Mediterranean Partner Countries. It focuses on four priority sectors for 2014-2020: 1. Finance and MSMEs; 2. Infrastructure; 3. Environment; 4. Human Capital and Research Development and Innovation, with an enhanced support provided through dedicated Impact Investment Envelope and CAMENA Climate Action Envelope. It also supports the FEMIP Internship Programme and the FEMIP Secondment Programme. Click here to view its rules.
FTF operations are available in three ways:
- Advisory services
- Acquiring private equity holdings to support the private sector
- “Democratic transformation support” for SMEs and initiatives that act as an economic catalyst in the region
Participation in the Trust Fund enables donors to contribute directly to FEMIP related activities. With a total of EUR 46.6m committed as of end 2014, the current donors of the Trust Fund are: Austria, Belgium, Cyprus, the European Commission, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.
Approvals by the Assembly of Donors in 2014:
- Increasing the Impact of the Southern Neighbourhood Advisory Programme for the Transport Sector (“SNAP-T”) (Regional)
- Technical Advisory to support seed accelerators in the FEMIP region (Regional)
- Enhancing the Impact of the PPP Project Preparation Facility (the "MED 5P initiative") (Regional)
- Taysir - Subordinated loan to a greenfield MFI in Tunisia (under Impact investing envelope) (Tunisia)
- FEMIP Internship Programme: A Building Capacity in Mediterranean Partner Countries (3rd extension) (Regional)
Number of operations (as of December 2014)
As of end 2014, the FTF has approved 60 operations (net of cancellations) for a total value of EUR 37.2m: 79% of the approved amounts are related to technical advisory operations while 21% are linked to risk capital operations. Click here to view the list of FTF approved operations.
This three-year EUR 4m programme was set up in 2012 to improve the regulatory environment and the institutional capacities of microfinance institutions. Alongside capacity-building and rating activities, it also prepares the ground for future equity and debt operations in the Tunisian microfinance sector. It was established in partnership with the Governments of Tunisia and Luxembourg.
Supporting community development in Egypt – Integrated and Sustainable Community Development Programme
The integrated Community Development Programme was launched in 2011 as a joint initiative between the EIB and the EU. It was designed to increase employment opportunities and improve living standards for the socially disadvantaged segments of populations living in and around urban centres in Egypt through the financing of investments in support of community infrastructure and housing. The programme was implemented through the Social Fund for Development (SFD).
The FEMIP Trust Fund has taken a EUR 5m equity participation in the first venture capital fund focusing on Palestine. The Fund makes equity investments in export oriented businesses primarily located in Palestine and active in the ICT sector, although it considers a limited number of investments in other high growth, high value-added, export-oriented sectors. The Fund invests mostly in early-stage ventures and to a lesser extent in more mature companies. In most cases, the Fund will be the lead investor in the first institutional rounds of financing and will be among the most active investors in the target companies.