ii. the eib and africa

1European Investment Bank

II. The EIB and Africa


From North to South …

The FEMIP Mandate (Facility for Euro-Mediterranean Investment and Partnership)

(Northern Africa)

The ACP-EU COTONOU PARTNERSHIP AGREEMENT

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

The RSA Mandate


FEMIP mandateFEMIP 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’ economiesTwo priorities: (i) Private sector support and (ii) Creation of an

investment-friendly environment

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

EIB lending in Northern Africa

EUR 8.5 bn invested since 2002, of which EUR 6 bn in Egypt, Tunisia, Morocco and Algeria


FEMIP financing facilitiesName Type of financing Amount in EUR Period Objective

ENP-MED Mandate Mandate conferred by the Member States, from the Bank’s own resources

8.7bn 1 February 2007-31 December 2013

Contributing to the development of the private sector and infrastructure in the Mediterranean partner countries

Mediterranean Partnership Facility II

Own resources 2bn 2007-2013 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.)

Risk capital and technical assistance envelope [1]

EU budget 128m 2007-2010 Fostering the creation or strengthening of equity and quasi-equity resources for SMEs in the Mediterranean partner countries

Technical Assistance Fund

EU budget 105m 2003-2009 Helping the partner countries and private promoters to improve the preparation, management and supervision of their investment projects

FEMIP Trust Fund Contributions from the Member States and the European Commission

34.5m Operational since 2005

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.

FEMIP lending figures FEMIP is now the leading investor in the Med region

5

EUR m Energy Transport Telecoms Industry Environment Human Capital Credit Lines Risk Capital

Algeria 318m Morocco 1,665m

Tunisia 1,814m Egypt 2,284m

October 2002 to December 2008 EUR 8,528 m

* 71% of total FEMIP funding went to African projects;

* about 85% for infrastructure projects –transport, energy, water and environment

EIB lending under Cotonou

Grants


Cotonou Subsidies – Interest RateUnder certain conditions, ordinary loans and guarantees can beextended 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

• ELIGIBILITY: 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


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.


EIB and the Cotonou Agreement6 years down the road(as of 31 July 2009):

Total signatures of EUR 3 351 mOf 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

35 % of total investments went toAfrican infrastructure

Close to 80 % of the portfoliorelate to Africa


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 MDGs

In line with Paris Declaration on Aid Effectiveness African ownership Alignment with national/regional prioritiesDonor harmonisation: working together & blending resources


EIB lending in South Africa

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

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

* Loans can be extended in ZAR


EIB lending in South Africa (2)

Close Cooperation with the European Commission: Risk Capital Facilities I and II (EUR 55 +50 m) New Facility (GEFSA) under consideration

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

ii. the eib and africa

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