The European Commission and IFC have signed a guarantee agreement to fund the Global Gateway and support private sector investments, job creation and economic growth across the world, with a focus on EU enlargement countries, the Eastern and Southern Neighbourhood, sub-Saharan Africa, the Asia Pacific region, and Latin America and the Caribbean. Through the Better Futures Programme, the European Union will provide up to €291 million in financial guarantees to IFC to de-risk investments. This is expected to mobilize more than $1 billion in private sector investments for Global Gateway projects across the energy, manufacturing and agriculture sectors, while also supporting micro and smaller businesses and climate adaptation projects.  This joint initiative builds on the EU’s and IFC’s experience in mobilizing investments at scale for innovative solutions to address development challenges such as climate change, fragility, conflict and crisis response, job creation, and inclusion, to help build resilient livelihoods.

De-risking involves reducing the financial risks associated with investments, particularly in emerging and developing markets. By providing guarantees, the program mitigates potential losses for investors, making it more attractive for them to invest in projects that might otherwise be considered too risky. This Global Gateway guarantee is funded by the European Fund for Sustainable Development Plus (EFSD+).

EU Commissioner for the Mediterranean, Dubravka Šuica, said: “Thanks to our collaboration with the IFC we improve the security and reliability of private investments in the Middle East and North of Africa. Today’s agreement will contribute to unleashing the untapped investment potential in these regions, unlocking new opportunities for small and medium businesses and supporting the green transition. Job creation and economic growth are an essential part of the New Pact for the Mediterranean.”