The European Investment Bank's (EIB) loans to the African, Caribbean and Pacific (ACP) countries signatories of the Lomé Convention, Overseas Countries and Territories (OCT) and to the Republic of South Africa, totalled EUR 544 million (1) in 2000. Of this, EUR 326 million came from the Bank's own resources, raised on the international capital markets, and EUR 218 million from risk capital resources from the European Development Fund (EDF) (2).

Lending activities in the ACP in 2000 confirm the trend of an increasing emphasis on private enterprise, representing 74% of total lending. Both large and small companies have benefited from EIB loans. A particular highlight was the large number of new EIB credit lines made available to ACP-based financial intermediaries, that represented 48% of total lending. These credit lines contribute to finance small and medium-sized investment projects by private companies and to the development of the domestic financial sector, by building up their technical and financial capacities.

The following lending operations were signed since mid July 2000 (3):

  • A line of credit of EUR 70 million for the bi-lateral European Development Finance Institutions (EDFI) of the European Union Member States, to support their lending activities to private sector enterprises in the ACP (EUR 50 million), the OCT (EUR 5 million) and the Republic of South Africa (EUR 15 million). The scheme is expected to have a catalytic effect in encouraging the EDFI institutions to invest their own resources in projects alongside funds from the EIB.
  • Belize, EUR 8.2 million from risk capital resources for the restructuring of Belize's citrus industry.
  • Benin, a total of EUR 6 million from risk capital resources. EUR 5 million has been granted jointly to Financial Bank (FB) and Ecobank Bénin for medium to long-term investment by SMEs and microfinance institutions in manufacturing, private infrastructure, agro-industry, tourism and related services sectors. EUR 1 million to Finadev SA, a subsidiary of FB, for financing microfinance institutions and micro-enterprises.
  • Cameroon, EUR 15 million from risk capital resources to Société Sucrière du Cameroun (Sosucam) for the rehabilitation of N'Koteng sugar complex, north-east of Yaoundé, including rehabilitation of 7 700 hectares of rain-fed sugar cane plantation and refurbishing the factory.
  • Dominican Republic, EUR 10 million to Banco Intercontinental SA to support investment by small and medium-sized enterprises in the industrial, agro-industrial, tourism, private infrastructure and related services sectors.
  • Gabon, a total of EUR 22 million (of which EUR 11 million from risk capital resources). A loan of EUR 12 million went to Compagnie Minière de l'Ogooué (Comilog) SA to part-finance the construction of an industrial complex for manganese ore concentration and agglomeration at Moanda. The project comprises a fines concentration plant, a concentrated fines agglomeration unit, other site facilities including an electricity substation, a dedicated branch rail line, rolling stock and special handling equipment at the port of Owendo. A second loan of EUR 10 million was granted jointly to Banque Gabonaise de Développement and Banque Internationale pour le Commerce et l'Industrie du Gabon for financing small and medium-scale ventures in industry, agro-industry, tourism, private infrastructure, forestry, extraction and related services.
  • Ghana, EUR 10 million jointly to Ecobank Ghana Ltd and Social Security Bank (SSB) for on-lending to the private sector in the industrial, agro-industrial, mining and tourism sectors and related services.
  • Guyana, EUR 0.5 million from risk capital resources to the Institute of Private Enterprise Development Ltd for on-lending to small and medium-scale companies in the productive sectors.
  • Jamaica, EUR 10 million from risk capital resources to Port Authority of Jamaica to finance the expansion of the container transhipment terminal at the Port of Kingston. 
  • Mauritania, EUR 30 million to Société Nationale Industrielle et Minière (SNIM) to part-finance the expansion of iron ore exporting capacity from deposits in Zouérate, in northern Mauritania. The project covers the renewal of mining equipment and extension of power plants, the acquisition of shunting engines and wagons to cope with increased production capacity and the installation of wet magnetic separation unit at the Guelbs plant in order to improve the quality of its iron ore concentrate and reduce emissions from the plant.
  • Mauritius, EUR 18 million to Airports of Mauritius Ltd for the expansion and modernisation of Sir Seewoosagur Ramgoolam international airport.
  • Mozambique, EUR 9 million (of which EUR 6 million from risk capital resources) to Telecomunicações de Moçambique to part-finance the extension of the mobile telephony network. Investment is to increase capacity in Maputo, improve the existing network coverage in the South and extend the network for the first time to the central and northern regions of the country.
  • Namibia, EUR 8 million to the Government of Namibia to support small and medium sized private enterprise investments in the manufacturing, agro-industrial, tourism, mining and revenue earning infrastructure sectors. The funds will be channelled through the Bank of Namibia, acting as Government's implementing agency, via approved commercial banks, to final beneficiaries in local and foreign currency.
  • Rwanda, EUR 8 million from risk capital resources to Banque Commerciale du Rwanda, Banque de Kigali and Banque Rwandaise de Développement, for financing small and medium-scale ventures by private enterprises. The loan aims to promote private sector investments, including rehabilitation of newly privatised companies, and the development of SMEs.
  • Saint Kitts and Nevis, EUR 4 million from risk capital resources to Development Bank of St Kitts & Nevis for financing productive investments by small and medium-sized enterprises in the industrial, agro-industrial, transport, tourism and other service sectors. Part of the funding will be available for student loans related to those sectors. 
  • Samoa, EUR 3 million from risk capital resources to Development Bank of Samoa for the financing of productive investments by small and medium-sized enterprises in the industrial, agro-industrial, transport, tourism and other services sectors.
  • Senegal, EUR 14 million from risk capital resources to Banque Internationale pour le Commerce et l'Industrie du Sénégal, Compagnie Bancaire de l'Afrique Occidentale, Crédit Lyonnais Sénégal and Société Générale de Banques au Sénégal to on-lend for projects and leasing operations of small and medium-sized enterprises in industry, agricultural processing, fisheries, tourism and related services.
  • Swaziland, EUR 10 million to Swaziland Electricity Board for the construction of overhead transmission lines and substations to improve and reinforce the national power grid. 
  • Zambia, EUR 8 million from EDF resources to Barclays Bank of Zambia Ltd, Indo-Zambia Bank Ltd, Industrial Credit Company Ltd, Stanbic Bank Zambia Ltd and Ulc Zambia Ltd for financing small and medium-scale ventures in the non-traditional mining sector, including downstream processing and marketing. The loan facility is part of the Mining Sector Diversification Programme, initiated by the European Commission, and whose other main component is technical assistance to the sector.

The EIB, established in 1958 by the Treaty of Rome, finances capital investment projects which further the European Union (EU) policy objectives. It also participates in the implementation of the EU's co-operation policy towards third countries that have co-operation or association agreements with the Union.

At present, the Bank's financing in the ACP is carried out under the provisions of the second financial protocol to the Fourth Lomé Convention, until the provisions set up by the New ACP-EU Partnership Agreement, signed in Cotonou in June 2000, come into force. Financing in South Africa is provided under a separate bi-lateral Framework Agreement, the Third of which was signed in June 2000. The Republic of South Africa became an associate member of the Lomé Convention in 1997.

(1) 1 EUR = 6.55957 FRF, 0.624100 GBP, 0.930500 USD

(2) The European Development Fund (EDF) is constituted by contributions from EU Member States. The EIB manages under mandate part of the EDF, which it uses primarily for risk capital operations.

(3) Projects signed from January to 15 July were listed in a press release dated 19 July 2000.