United Nations Conference on the Least Developed Countries (LDC5), in Doha, Qatar

Thomas Östros, EIB Vice-President

Opening remarks Private Sector Forum

5 March 2023

 


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Ladies and gentlemen,

Let me begin by thanking Under-Secretary-General Fatima, not only for inviting the European Investment Bank to this event, but, more importantly, for the outstanding work she has been doing. A delegation from my bank had the honour to meet you just the day after you took office last August. We are delighted for this opportunity to meet again today, here in Doha.

Today, the world faces terrible and intractable challenges.

The global consequences of the war in Ukraine on food and energy security, and the Covid pandemic, have shown us just how interconnected our world is. Peace, sustainable development, climate action, health, and gender equality – all the sustainable development goals – are in everyone’s interest: from the global North to the global South, East to West.

We must nurture our mutual interests. Cooperation between institutions like the United Nations and Multilateral Development Banks is vital, but not enough. According to UN estimates, we need $3.3 to 4.5 trillion a year to achieve the 2030 Sustainable Agenda. And we need another $3 to 6 trillion every year to decarbonise the global economy and transition to climate resilience by 2050.

To succeed, we need to find ways to channel the full financial power and ingenuity of the private sector. Alone, the public sector just doesn’t have the resources – nor the expertise to sufficiently develop any of the five thematic areas we are here to discuss.

This is why I personally consider this Private Sector Forum a truly decisive part of this LDC5 conference.

Let me turn to what we do in my bank, the European Investment Bank. We are the largest multilateral financial institution in the world. And multilateral development banks can make a difference.

At the EIB, we are deploying new, innovative ways of financing and mobilising private investment. Earlier this week, for example, we signed agreements that will mobilise up to €3.5 billion in lending, as well as a €500 million Trust Fund contribution, described by some as a new powerhouse to support businesses in African, Caribbean and Pacific (ACP) countries. It will support high impact private investments in key areas like digitalisation, climate and energy, transport, health in partner countries.

The loans will come on favourable terms to create jobs and opportunities, particularly for women and young people. 

With the restructuring of our international operations under EIB Global, we are deepening our commitment to our partners in the world’s most vulnerable countries.

EIB Global leverages the Bank’s 60-plus years of experience in more than 150 countries to provide advice on project planning, structuring and implementation and encourage financial flows from the private sector into investments that benefit the Sustainable Development Goals.

We are also increasing our local presence in countries outside the EU, through local offices and regional hubs.

Less than two weeks ago, I visited our hub for East Africa, in Nairobi. We opened the hub in November 2021, and it has been growing steadily. This hub – and others like it to come – are part of our strategy to better deliver our full range of advisory and financial instruments to address the most urgent needs facing least-developed countries, including climate change.

EIB Global is also a key partner of the European Union’s Global Gateway, which aims to mobilise €300 billion of infrastructure investment by 2027. The priority fields are digital connectivity, sustainable energy and transport, as well as to strengthen health, education and research systems across the world.

The Global Gateway is designed to deliver high impact, win-win results in partner countries. It is fully aligned with the UN’s Agenda 2030, the Sustainable Development Goals, and the Paris Agreement.

EIB Global’s work, especially in the most fragile economies, involves strategic investments in global public goods that benefit every nation, as well as each project’s investors and beneficiaries. It is also a mean to better listen and learn, and to target the sweet spot where resources, needs and opportunities meet.

Let me take a concrete example, demonstrating how we work to mobilise private investment in key thematic areas in the most vulnerable countries.

Just a few days ago, in Dar Es Salaam, I signed three credit lines totalling €270 million. Working in partnership with three local banks – CRDB, NMB and KCB – and using guarantees from the European Commission, the deal is expected to mobilise €540 million.  This is our largest-ever business financing engagement. And it has two clear targets: to boost female entrepreneurship and to support the blue economy across Tanzania.

To make this even more concrete, the EIB delegation and myself, we went to the island of Zanzibar – where many small businesses are active in the blue economy, whether in fishing and maritime transport, or in boat tourism or other marine business such as seafood processing, or working at the ports. I experienced first-hand how some of these end clients are creating jobs, contributing to economic development.

The social and development impact of this new initiative is enhanced by innovative blended financing backed by the European Union. This is a Team Europe effort.

Ladies and gentlemen,

I hope this example illustrates our overall intent: partner up with financial institutions capable of addressing industrial and business needs in a sustainable way. Sustainable prosperity in Tanzania and elsewhere is something we cherish and strive for. It is not just assistance or support, but productive investment to help ensure that the planet we leave our children will be cleaner, more peaceful, and more resilient than we found it.

Reaching the Sustainable Development Goals is our common responsibility. Our work is to define common priorities, to build mutual advantage into all our projects, and exploit the synergies between public and private funds in everything we do.

Thank you.