The European Investment Bank (EIB) and the European Commission signed, on Tuesday 28 February, agreements worth €4 billion to promote private sector investment in African, Caribbean and Pacific (ACP) countries, the bank and the Commission announced the same day.
This amount includes two components, namely:
- a contribution of €500 million from the EU’s 2021-2027 external budget to the ACP Trust Fund, established and managed by the EIB, which will support, for example, small-scale renewable energy plants in off-grid areas;
- a Guarantee Agreement under ‘European Fund for Sustainable Development Plus’ (EFSD+) which is an instrument that aims to mobilise private sector funds in third countries, with guarantees that can provide coverage of up to €53.449 billion, of which €26.725 billion comes through the EIB. This agreement will enable the EIB to provide up to €3.5 billion in loans on favourable terms to create jobs and opportunities, particularly for women and young people, and to support the green and digital transitions in line with the ambition of the EU’s Global Gateway strategic investment programme.
An agreement of €26.7 billion guarantee agreement for public loans in third countries was signed by the EU and the EIB in May 2022 (see EUROPE 12949/12). (Original version in French by Aminata Niang)