Transcript Document

II. The EIB and Africa

European Investment Bank


From North to South …

The FEMIP Mandate

(Facility for Euro-Mediterranean Investment and Partnership)

(Northern Africa)


(Sub-Saharan Africa except RSA, as well as Caribbean and Pacific ACP countries)

The RSA Mandate

European Investment Bank


EIB lending in Northern Africa FEMIP mandate

FEMIP brings together the whole range of EIB instruments in the Mediterranean partner countries (MPCs)* Its objective is to support the modernisation and opening-up of MPCs’ economies Two priorities: (i) Private sector support and (ii) Creation of an investment-friendly environment EUR 8.5 bn invested since 2002, of which EUR 6 bn in Egypt, Tunisia, Morocco and Algeria *

Algeria, Egypt, Gaza/West Bank, Israel, Jordan, Lebanon, Morocco, Syria and Tunisia.

European Investment Bank


FEMIP financing facilities

Name ENP-MED Mandate Type of financing Mandate conferred by the Member States, from the Bank’s own resources Own resources Amount in EUR Period 8.7bn 2bn 1 February 2007 31 December 2013 2007-2013 Mediterranean Partnership Facility II Risk capital and technical assistance envelope [1] EU budget Technical Assistance Fund FEMIP Trust Fund EU budget 128m 105m Contributions from the Member States and the European Commission 34.5m

2007-2010 2003-2009 Operational since 2005 Objective Contributing to the development of the private sector and infrastructure in the Mediterranean partner countries Supporting well-defined priority projects of particular relevance to both the EU and the partner countries (regional development, sectoral policies, environment, support for EU enterprises, etc.) Fostering the creation or strengthening of equity and quasi-equity resources for SMEs in the Mediterranean partner countries Helping the partner countries and private promoters to improve the preparation, management and supervision of their investment projects Gaining a deeper understanding of the region’s major economic challenges by financing technical assistance and sectoral studies. Supporting the private sector by providing equity and quasi equity finance for innovative operations or operations with an unusual risk profile.

European Investment Bank


FEMIP lending figures

FEMIP is now the leading investor in the Med region


        Energy Transport Telecoms Industry Environment Human Capital Credit Lines Risk Capital

Tunisia 1,814m

* 71% of total FEMIP funding went to African projects; * about 85% for infrastructure projects – transport, energy, water and environment

Egypt 2,284m Morocco 1,665m Algeria 318m

October 2002 to December 2008 EUR 8,528 m


EIB lending under Cotonou Grants

Cotonou Subsidies – Interest Rate

Under certain conditions, ordinary loans and guarantees can be extended on concessional terms

General rule applied: - Interest rate subsidy: maximum 3 % - Final rate of loan: cannot be less than EIB reference rate, including mark-ups •  


Infrastructure projects, a prerequesite for private sector development in:

Post-conflict countries, Least developed countries and Post-natural disaster countries Flexibility can be applied in the case of HIPC countries

Public/private sector projects which: •

Involve restructuring in the context of privatisations

Give rise to demonstrable social and environmental benefits By mid-2009, a total of EUR 129 m committed in favour of 35 projects

European Investment Bank


Cotonou Technical Assistance

EIB technical assistance operations aim to: •

Enhance project quality and success rate;

Increase the efficiency of the EIB’s investment activities;

Complement other EIB financial products .

Technical assistance grants cover the whole project cycle from project identification to project completion

Mid-2009, 32 ongoing Cotonou TA operations (ie contracted out) for a total of EUR 16 m.

European Investment Bank


EIB and the Cotonou Agreement 6 years down the road

(as of 31 July 2009):

Total signatures of EUR 3 351 m

Of which:

 

EUR 2 223 m under the IF EUR 1 108 m under EIB own resources 76 %

of the portfolio relate to

private sector operations Close to 80 %

of the portfolio relate to

Africa 35 %

of total investments went to

African infrastructure European Investment Bank


EU-Africa Infrastructure Trust Fund   not an institution a financial instrument  Part of

EU efforts to intensify its Aid to Africa

EU-Africa Infrastructure Partnership

 Contributing to achieving the


 In line with

Paris Declaration on Aid Effectiveness

African ownership Alignment with national/regional priorities Donor harmonisation: working together & blending resources

European Investment Bank


EIB lending in South Africa

EIB is supporting South Africa’s economic development since 1995 – EUR* 2 bn cumulative lending at the end of July 2009

EUR 940 m for infrastructure projects over the period 1995-2008, equivalent to 51 % of cumulative lending

EUR 900 m to be committed over the period 2007 2013, of which already EUR 442 m committed at the end of July 2009

* Loans can be extended in ZAR

European Investment Bank


EIB lending in South Africa (2) Focus:

 equitable & sustainable economic growth  employment creation, innovation & capacity development  sustainable provision of equitable access to social services  modernisation of the economy  integration of South Africa into the world economy

Close Cooperation with the European Commission:

 Risk Capital Facilities I and II (EUR 55 +50 m)  New Facility (GEFSA) under consideration

European Investment Bank