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TunisiaEIP: new instrument to boost investment in EU Neighbourhood and Africa
September 15, 2016
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On the occasion of President Juncker’s 2016 State of the Union address, the European Commission has set out how it plans to further boost investment to support jobs and sustainable growth, both in Europe and globally. Among the proposals, it was agreed to set up a new European External Investment Plan (EIP) to encourage investment in Africa and the EU Neighbourhood, to strengthen our partnerships and contribute to achieving the Sustainable Development Goals.
The new instrument will make it possible to boost investments in Africa and EU Neighbourhood countries, in particular to support social and economic infrastructure and SMEs, by addressing obstacles to private investment. With an input of EUR 3.35 billion from the EU budget and the European Development Fund, the EIP will support innovative guarantees and similar instruments in support of private investment, enabling the EIP to mobilise up to EUR 44 billion of investments. If Member States and other partners match the EU’s contribution, the total amount could reach EUR 88 billion.
By unlocking investments in partner countries, the EIP will contribute to implementing the 2030 Agenda on Sustainable Development Goals and the Addis Agenda on Financing for Development. It will also provide a key contribution to addressing the root causes of migration, reinforcing our partnerships and looking at the long term drivers behind the large movements of population.
The EIP consists of three complementary pillars:
· Mobilising investment by combining existing investment facilities with a new guarantee within the new European Fund for Sustainable Development (EFSD).The EFSD will be composed of two regional investment platforms for Africa and the Neighbourhood.
· Stepping up technical assistance for a broader policy environment to support public authorities and companies in partner countries. The aim is to help them to better prepare and promote projects and attract more investment.
· Improving the general business environment by fostering good governance, fighting corruption, and removing barriers to investment and market distortions.
In addition, the European Investment Bank (EIB)’s lending operations form an integral part of the EIP. For this purpose, the Commission will expand the EU budget guarantee under the EIB External Lending Mandate by a total of EUR 5.3 billion. In total, the EIB will thus lend up to EUR 32.3 billion under the EU guarantee between 2014 and 2020.
The EIP offers an integrated framework enabling full cooperation among the EU, Member States, partner countries, international financial institutions, donors and the private sector. It will improve the way in which scarce public funds are used and the way public authorities and private investors work together on investment projects.
Through the EIP, the EU will take a further step in contributing to the global architecture for development and management of migration, two themes that will be at the centre of the discussion during the upcoming UN General Assembly.
EU High Representative for Foreign Affairs and Security Policy/Vice-President of the Commission, Federica Mogherini, said: “If we look at the Middle East and Africa, we see regions with a huge potential that is being held back by war, poverty, the lack of infrastructure, and weak governance. Our European Union is already the first donor worldwide: we invest more in development cooperation than the rest of the world combined. But we also know that public resources cannot be sufficient if we want to untap this huge potential and achieve the sustainable development goals. European firms are already creating jobs and growth in our entire neighbourhood and in Africa, for the benefit of our partners and of the European citizens. While creating the conditions for Europeans to expand their business and move into new countries, the new External Investment Plan will support our partners’ economies and societies, as well as our strategic foreign policy goals, from security to global development.” (EU Neighbourhood Info)
Read more
European External Investment Plan – Factsheet
European External Investment Plan: Questions and Answers
Communication from the Commission – Strengthening European Investments for jobs and growth: Towards a second phase of the European Fund for Strategic Investments and a new European External Investment Plan
European Commission – website and Facebook page
