Since the first of January 2001, the European Investment Bank's (EIB) loans to the African, Caribbean and Pacific (ACP) countries signatories of the Lomé Convention, to the Overseas Countries and Territories (OCTs) and to the Republic of South Africa, totalled EUR 258 million (1). Of this, EUR 158 million came from the Bank's own resources, raised on the international capital markets, and EUR 100 million from risk capital resources from the European Development Fund (2). 

In addition to those already announced (3), the following lending operations were signed this year:

  • Caribbean region: EUR 5 million from risk capital resources to Caribbean Microfinance Ltd, a subsidiary of Development Finance Ltd, for the financing of very small entrepreneurs in the manufacturing, agro-processing, trading, engineering, transport, auto body and mechanical repair, grocery stores, restaurants, photographic services and tourism services. Regional coverage comprises Trinidad & Tobago, Guyana, Barbados and the Windward and Leeward Islands.
  • Barbados: EUR 15 million to the Barbados Airport Inc. towards financing the upgrading and expansion of Barbados' Grantley Adams International airport to meet traffic demand and conform to International Civil Aviation Organisation (ICAO) standards.
  • Cameroon: EUR 15 million (of which EUR 10 million from risk capital resources) to Banque Internationale pour l'Epargne et le Crédit (BICEC), Société Commerciale de Banque - Crédit Lyonnais (SCB-CL) and Standard Chartered Bank Cameroon (SCBC) for the financing of industry, agro-industry, wood-processing, tourism, services and commercial infrastructure. The loan aims to promote private sector investments, including rehabilitation of newly privatised companies, the development of SMEs, and to encourage private sector entrepreneurship and employment.
  • Dominican Republic: EUR 10 million to BHD bank to support investment by small and medium-sized enterprises in the industrial, agro-industrial, tourism, private infrastructure and related services sectors.
  • Mauritania: EUR 1 million from risk capital resources to Société Arabe du Fer et de l'Acier (SAFA) to part-finance the extension of its smelting plant to increase production capacity. SAFA's main activity is the production of concrete reinforcing bars and consumable metallic pieces out of iron scrap coming from its parent company the Société Nationale Industrielle et Minière (SNIM). Part of the increased production will be exported. 
  • Mozambique: EUR 3 million from risk capital resources as the EIB's participation in a new Private Equity Fund (FICREM). FICREM is a venture capital fund created to finance equity and quasi-equity participations in small and medium size companies in the manufacturing, transport, mining, agro-industry and tourism sectors. Alongside the EIB, the following financial institutions will participate in the Fund: Caixa Geral de Depósitos, Investimentos e Participações Empresariais (IPE, Portugal), the Development Finance Institution of The Netherlands (FMO), and the Southern Africa Enterprise Development Fund Inc. (SAEDF). 
  • Nigeria: EUR 5 million from risk capital resources to Ventures & Trust Ltd (V&T) for the financing of investments by small and medium-sized enterprises (SMEs) in the industrial, agro-industrial, mining, tourism and related services sectors, through lending, leasing and equity interventions. EIB loan aims at diversifying the industrial base of the economy by promoting private sector investments, including rehabilitation of newly privatised companies.
  • Zambia:Capital Investment Line II A - EUR 20 million from risk capital resources to selected commercial banks and leasing companies for medium term on-lending to a wide range of small and medium scale enterprises. The lofacility will be made available to the following financial institutions: Barclays Bank of Zambia Ltd, Indo-Zambia Bank Ltd, Stanbic Bank Zambia Ltd, Standard Chartered Bank Zambia Plc, Industrial Credit Company Ltd and African Banking Corporation Zambia Ltd.

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 Africa, the Caribbean and the Pacific (ACP) is carried out under the provisions of the Fourth Lomé Convention, which was concluded in 1989 for a period of 10 years and is accompanied by two Financial Protocols. Under the second financial protocol, the total financial aid available amounts to EUR 14.6 billion, of which EUR 12 billion is grant aid from the EU member states, EUR 1 billion is managed by the EIB as risk capital finance, and up to EUR 1.6 billion is in the form of loans from the EIB's own resources. The EIB is currently working in close collaboration with the EU's Member States and the European Commission, in defining the criteria for management and operation of the newly created Investment Facility, set up by the New ACP-EU Partnership Agreement, signed in Cotonou in June 2000, which will replace the Lomé Convention.

The Republic of South Africa became an associate member of the Lomé Convention in 1997. The Bank has a separate lending mandate from the EU's Member States to provide long term financing for RSA totalling EUR 825 million over the period 2000-2006.

(1) The conversion rates used by the EIB for statistical purposes during the current quarter are those obtained when 1 EUR = 6,55957 FRF, 0.638700 GBP, 0.924800 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) Press Releases can be consulted on this site.