Team Europe: EU seals agreements to generate €10 billion in investment in Africa and the EU Neighbourhood and stimulate global recovery

Today, during the Finance in Common summit, the European Commission took a major step forward in boosting investment in Africa and the EU Neighbourhood, helping to stimulate global recovery from the pandemic, by concluding ten financial guarantee agreements worth €990 million with partner financial institutions that complete the European Fund for Sustainable Development (EFSD), the financing arm of the External Investment Plan (EIP). Together, these guarantees are expected to generate up to €10 billion in overall investment. Jutta Urpilainen, Commissioner for International Partnerships, said: “By signing these agreements today, the EU has concluded the implementation of the External Investment Plan’s overall guarantee almost two months early. Now our partner financial institutions can make use of all of the Plan’s individual guarantees to generate billions of euros in much-needed investment, in particular across Africa. These agreements will directly support people who face some of the biggest challenges because of COVID-19: small business owners, the self-employed, women entrepreneurs and businesses led by young people. They will also help to fund a major expansion of renewable energy generation, ensuring that the recovery from the pandemic is green, digital, just and resilient.” Commissioner for Neighbourhood and Enlargement, Olivér Várhelyi, said: “The guarantee agreements that we sign today clearly show the effective partnership established between the European Commission and the International Financial Institutions in support of our partner countries. Investments have become even more necessary in light of the pandemic. With today’s signature, the European Commission is securing more than €500 million to support EU Neighbourhood countries. These guarantee agreements will stimulate their economic recovery and make them more resilient to future crises.” Guarantees agreements include the earlier announced €400 million guarantee – that complements the additional €100 million EU grant announced today – for the COVAX Facility, to develop COVID-19 vaccines and ensure fair access once they are available. Other agreements for guarantees amounting to €370 million will help small businesses stay afloat and continue to grow in the face of the COVID-19 pandemic. For more information see the full press release.