Luxembourg, 12/10/2007 (Agence Europe) - The government of the Republic of South Africa and the European Investment Bank (EIB) have signed a declaration of intent regarding continued EIB financing support to South Africa during the period 2007-2013.
Since 1995, the EIB has channelled €1.5 billion (ZAR 14.6 billion) into the financing of productive investment in South Africa under the framework for cooperation between South Africa and the European Union. During this period, the main areas of cooperation were municipal infrastructures (27%), support to small and medium-scale investments (20%), electric power (15%) and water (14%). Over 50% of all disbursements were made in South African rand (ZAR).
In December 2006, the European Council agreed a new €900 million mandate for EIB in South Africa for the period 2007-2013. In line with the new mandate, and in cooperation with the South African authorities, public agencies, private enterprise and the financial sector, the Bank will focus on investment in infrastructure projects of public interest (including municipal infrastructure, power and water supply) and private sector support, including SMEs.
The Joint Country Strategy Paper for South Africa defines the reduction of poverty and inequality as the overriding objective of the developing cooperation between the European Union and South Africa for the period 2007-2013. In addition, the creation of employment is a focal sector of the Multi-Annual Indicative Programme for the same period. EIB financing in South Africa in the context of the new mandate will actively support these objectives.
Concretely, financing proposals will concern public and private sector projects and programmes in the sectors of energy, water and sewerage, transport and telecommunications, affordable housing, municipal and provincial infrastructure, industry (including agro-industry), tourism and mining. Assistance to small land medium-scale investments will be provided through approved financial intermediaries. (ol)