On Wednesday 28 June, negotiators at the European Parliament and Maltese Presidency of the Council of the EU reached a provisional agreement on creating the European Fund for Sustainable Development (EFSD). This is an external investment fund which is expected to enable €44 billion in private sector investment in Africa to be raised by 2020. Its initial budget is €3.3 billion (see EUROPE 11774).
The goal is to address the deep-rooted causes of migration. This new instrument is intended for African countries in the ACP group with which the EU concluded partnerships on migration, and for neighbourhood countries (Lebanon, Jordan). It is Africa, however, which will be the primary beneficiary.
The agreement provides for the fund to focus on the fight against poverty, the creation of decent jobs, young people, women and small companies. It also provides for support and having to respect international development standards. A minimum of 28% investment will go to support climate action in the beneficiary countries, in order to help implement the Paris Agreement.
The beneficiaries will have to respect human rights, International Labour Organisation (ILO) standards and international rules on responsible investment. Local people affected by the projects will have to be able to have access to a complaints-handling procedure.
In order to ensure tax transparency, strict rules will ensure that companies from jurisdictions that do not cooperate on tax problems and money-laundering cannot benefit from the resources.
Keen to be able to exercise democratic control over spending, the Parliament has obtained observer status on the EFSD Strategic Board. It has also obtained the assurance that the European Commission will have to inform it beforehand of any important investment decision.
The agreement will have to be confirmed by the Parliament and Council. The Parliament's committees (development and budgets) are expected to give their opinion on 3 July, and the whole Parliament will do so at the plenary session on 6 July. (Original version in French by Aminata Niang)