A conference organised in Cairo on Wednesday 13 September by the European Investment Bank (EIB), in partnership with Egypt's Ministry for International Cooperation and Investment, the EU delegation to Egypt and the Union for the Mediterranean (UfM), underlined the key role of the private sector for boosting investment, and thus growth and jobs, on the southern shore of the Mediterranean.
The conference participants discussed regional challenges and opportunities in the context of the EIB's recent efforts to mobilise finance to build economic resilience in the Mediterranean countries and offer new opportunities, particularly for young people and women, under its new economic resilience initiative.
Government officials, investors, bankers and researchers from Egypt, Lebanon, Morocco and Tunisia assessed the current economic context, potential drivers of economic growth in the region, ways to help SMEs and micro entrepreneurs access finance, and the critical investment needs to promote innovation and the international competitiveness of local firms.
"We believe the role that the private sector plays in boosting economic activity and creating jobs for the unemployed and new entrants to the labour market is absolutely key. This is why the EIB is stepping up its support to the private sector under its Economic Resilience Initiative", Dario Scannapieco, Vice-President of the EIB, stated, announcing the EIB's recent approval of €600 million for SME finance in Egypt, Jordan, Lebanon, Tunisia and Morocco.
Underscoring the "crucial role" of the private sector for boosting sustainable, inclusive development and for guaranteeing "decent job opportunities for all, especially young people and women", Ambassador Ivan Surkoš, Head of the European Union Delegation to Egypt said that the EU is expected to mobilise more than €1.2 billion in new financing for micro-SMEs in the region through the EU Initiative for Financial Inclusion during the 2016-2020 period. He indicated that this will be done by pooling resources between the European Commission Neighbourhood Investment Facility (NIF) and European finance institutions.
Surkoš announced the establishment of a new initiative – the European External Investment Plan (EIP) – which will cover the Middle East and North Africa (MENA) region, and which is aimed at leveraging public and private funds from the EU and its member states. The initiative will also reinforce efforts to improve the business and investment climate. About €44 billion is expected to be mobilised from 2017 until 2020.
The EIB initiative for resilience in the southern Mediterranean and Balkans aims at helping these countries absorb and respond to crises and shocks, such as the Syrian refugee crisis, while maintaining growth. By stimulating investment in the private sector and vital infrastructure, it aims to create opportunities for employment and improve both daily living conditions and the business environment by increasing the provision of services like energy, transport, water, sanitation and education.
Since the initiative's launch in late 2016 (until mid-2017), 13 projects have been approved for a total of €1 billion in financing targeting micro-enterprises, SMEs and large companies. Lending via partner banks alone is set to benefit over 600 smaller businesses, helping to sustain more than 40,000 jobs.
In 2016, the EIB invested €1.6 billion in the Mediterranean region, of which 60% went to private sector finance. (Original version in French by Emmanuel Hagry)