EU unveils plan to boost investment in Africa and in the EU’s neighbourhood

The European Commission proposed to set up a new European External Investment Plan (EIP) to encourage investment in Africa and in the EU Neighbourhood, strengthen partnerships and contribute to achieving the UN Sustainable Development Goals.

The EIP will boost investments in Africa and in EU Neighbourhood countries, to support social and economic infrastructure and Small and Medium-sized Enterprises, 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 mobilize 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.

The European Investment Bank (EIB)’s lending operations form an integral part of the EIP. The Commission will expand the EU budget guarantee under the EIB External Lending Mandate by a total of EUR 5.3 billion. 

The EIP offers an integrated framework enabling full cooperation among the EU, Member States, partner countries, international financial institutions, donors and the private sector. 

Source: Caperi