The European Commission announced on Wednesday 3 June the creation of a Social Entrepreneurship Fund (SEF), the flagship initiative of the ‘Pact for the Mediterranean’, in partnership with the German Federal Ministry for Economic Cooperation and Development and the development bank KfW.
The aim of this fund, worth €80 million, is to boost sustainable job creation in the countries of the southern Mediterranean. It will support investments in SMEs and start-ups in the social sector, particularly in education, climate and financial inclusion. In the southern Mediterranean region, SMEs account for more than 85% of jobs, but struggle to access financing and investment.
The Fund has two components: a €45 million equity fund, operational from 3 June, and a €35 million debt fund, together with a Technical Assistance Facility. The latter component is a long-standing EU programme, helping partner countries improve their regulatory frameworks, strengthen their institutional capacities and mobilise investment. (Original version in French by Camille-Cerise Gessant)