On Wednesday 11 July, the European Commission announced that that green light had been given on Tuesday 10 July to an initial 12 financial guarantee programmes worth around €800 million, as part of the EU's external investment plan (EIP). The EIP is mainly intended for Africa and the EU's neighbouring countries in order to fight the deep-rooted causes of illegal migration to Europe (see EUROPE 11911).
The Commission believes the €800 million should enable €8-9 billion in public and private investment in these countries.
The green light that has been received paves the way for the signature of the initial contracts for the financial guarantees with partner financial institutions, which are admissible from the second half of 2018.
"These guarantee programmes for sustainable investment give now access to affordable loans to people who have been forced to flee their country and those who have recently returned home to rebuild their lives: to start small businesses or to have access to new technologies. This plan is about building a new present for many people and for their countries, it is about changing lives, now and for good", High Representative of the EU for Foreign Affairs and Security Policy Federica Mogherini said in a press release.
The NASIRA Risk-Sharing Facility programme will enable citizens currently experiencing difficulty to borrow money at affordable rates – for example, people displaced within their country, refugees or people who have been repatriated. The InclusiFI programme will meanwhile enable over 25,000 small businesses to have access to mobile accounts and long term loans in order to support the financial inclusion of members of the diasporas, migrant families and people who have returned to the country.
Other programmes approved include access to clean electricity for 3.5 million people in sub-Saharan Africa (DESCO programme), or access to broadband internet for 300,000-600,000 households in rural areas in neighbouring countries.
"Since its launch last September, we have mobilised €800 million in guarantees and €1.6 billion in blending, which will overall translate into over €22 billion public and private investments", European Commissioner for International Cooperation and Development Neven Mimica said in a press release.
The decision for approval was taken by the Strategic Board of the European Fund for Sustainable Development (EFSD) – the financial pillar of the EIP (see EUROPE 11877). The Board comprises representatives of EU member states, the European Parliament (as observer), the European Commission (which chairs the meeting), the European External Action Service and the European Investment Bank. Partner countries and regional stakeholders can also join as observers.
Launched in September 2017, the EIP is expected to leverage €44 billion in investments in Africa and the EU's neighbourhood by 2020 (see EUROPE 11896). (Original version in French by Aminata Niang)