Transcript European Investment Bank in Latin America

European Investment Bank
in the Agricultural sector in Africa
– challenges and opportunities
Counter Balance: Challenging the European Investment
Bank
Desislava Stoyanova, Brussels
2nd February 2009
Counter Balance's mission is to make the EIB an open and
progressive institution delivering on EU development goals and
promoting sustainable development to empower people affected by
its work.
The EIB as an example for political
regulation under neoliberalism
Counter Balance members:
•Les Amis de la Terre (France)
•urgewald ,Weed (Germany)
•Campagna per la Reforma de la Banca Mondiale (Italy)
•BothENDS (Netherlands)
•Breton Woods Project (UK)
•Bankwatch Network (Central and Eastern Europe)
The EIB – Basic facts
Set up in 1958 under the Treaty of Rome
House bank of the EU; independent status
Owned by 27 EU member states
Active in more than 130 countries all over the world
Headquarters – Luxembourg with increasing number of regional
offices (5 in ACP; Warsaw and Bucharest in CEE region)
Transport, energy, water, industry, banking, R&D, oil, mining and
gas, telecommunication
The EIB – Basic facts
Other important data:
• Subscribed capital –
164 808 million Euro
• Borrowing and floating
bonds on capital markets;
AAA rating
•Approved loans in 2007 –
56 455 million Euro, of
which 756 million for ACP
countries
Projects approved by the EIB in
2006
Partner
Countries
15%
European
Union
85%
EIB Activities Outside the Union
External Lending Mandate (2007-2013) - 27.8 billion euro of
Community guarantees compared to 20.7 for the period
2000-2006
In the ACP countries:
Objective: 'reducing and eventually eradicating poverty
consistent with the objective of sustainable development
and the gradual integration of ACP countries into the
world economy’
EIB Activities Outside the Union
The Cotonou agreement (2000) governs EIB loans to the 79
African, Caribbean and Pacific (ACP)
- manages the Cotonou Investment Facility (IF), a riskbearing Instrument established in June 2003.
(2003-2008) for private sector (2.2 bln EDF/EU + 1.7 bln EIB)
and 187 mln € EDF/EU interest rates subsidies
(2009-2013) 1.1 bn € EDF/EU + 2.0 bn. EIB
and 400 mln. € EDF/EU interest rates subsidies and TA
- EU-Africa Infrastructure Partnership (220-260 mln)
- ACP-EU Water Partnership
EIB as the EU policy bank
EU consensus on development – call for “synergies” of
EIB’s lending
ECJ judgement, November 2008 (case C-155/07 ):
- TITLE XX of the EC Treaty, which deals with
“DEVELOPMENT COOPERATION” :
“1. Community policy in the sphere of development cooperation,
which shall be complementary to the policies pursued by the
Member States, shall foster:
— the sustainable economic and social development of the
developing countries, and more particularly the most
disadvantaged among them,
— the smooth and gradual integration of the developing countries
into the world economy,
— the campaign against poverty in the developing countries.”
The EIB’s lending priorities outside the
EU
Outside the EU EIB lending is based on EU external
cooperation and development policies.
Development: Africa, Pacific and Caribbean (ACP); Republic
of South Africa
Lending under these mandates focuses on:
- Private sector development
- Infrastructure development
- Security of energy supply
- Environmental sustainability
Mainly for European companies...
EIB in practice: support for the
Agricultural sector in Africa
Year
Country
Project
In euro
Description
2006
Solomon Islands
Kolombangara
Forestry Project
3,500,000
Rehabilitation of approximately 3
750 hectares of poor quality
tropical hardwood plantation and
replacement of ageing Equipment
2005
Mauritania
Seph-Nouadhibou
2,500,000
Extension of seafood preparation,
freezing and packing plant
2005
Madagascar
Aqualma III
5,000,000
Expansion of shrimp farm in
Mahajamba delta on north-west
coast
2004
Borswana
Fabulous Flowers
2,000,000
Production and export of roses
2002
Cameroon
Plan Bananes
2002-2006
8,000,000
Modernisation and strengthening
of the competitiveness of three
banana plantations in western
Cameroon
2001
Kenya
Kenya Geraniums
4,400,000
Construction of plant-breeding and
propagation facilities in Thika, east
of Nairobi
2000
Belize
Belize Citrus
Sector Operation
8,800,000
Finance for replanting of existing
citrus
Groves
2000
Madagascar
Aquamas
Aquaculture
7,000,000
Construction of shrimp farm and
packing facility at Baly Bay on
north-western coast
1999
Madagascar
Moramba
Aquaculture
1,000,000
EIB in practice: support for the
Agricultural sector in Africa
-Private sector development? –
How to develop the African private sector and which private
sector in agriculture
-Global loans – financing SMEs through financial intermediarie
Where does the money go? Which financial institutions needed
for supporting family agriculture and rural development
-Financing for large infrastructure projects and agriculture?
Support for de-financialise agriculture and not export-oriented
Can the Bank show initiative?
Can the EIB use other instruments to show true prodevelopment approach?
-Support the development of the local market –
infrastructure not export-oriented
-Support small companies and cooperatives
-Provide lending on concessional terms with a higher
grant component
- not to support European private sector
Counter Balance: Challenging the
European Investment Bank
Thank you!
www.counterbalance-eib.org
Email: [email protected]