II. The EIB and Africa

1

• II. The EIB and Africa

2
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

3
EIB lending in Northern Africa

• FEMIP mandate
• FEMIP 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 economies
• Two priorities (i) Private sector support and
  (ii) Creation of an investment-friendly
  environment

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

Algeria, Egypt, Gaza/West Bank, Israel,
Jordan, Lebanon, Morocco, Syria and Tunisia.
4
FEMIP financing facilities
Name Type of financing Amount in EUR Period Objective
ENP-MED Mandate Mandate conferred by the Member States, from the Banks 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 regions 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.
5
FEMIP lending figures FEMIP is
now the leading investor in the Med region

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

Tunisia 1,814m
Egypt 2,284m
71 of total FEMIP funding went to African
projects about 85 for infrastructure
projects transport, energy, water and environment
Morocco 1,665m
October 2002 to December 2008 EUR 8,528 m
5
6
EIB lending under Cotonou
Grants
7
Cotonou Subsidies Interest Rate
Under certain conditions, ordinary loans and
guarantees can be extended 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

8
Cotonou Technical Assistance

• EIB technical assistance operations aim to
• Enhance project quality and success rate
• Increase the efficiency of the EIBs 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.
9
EIB and the Cotonou Agreement
6 years down the road (as of 31 July 2009)
Total signatures of EUR 3 351 m

• Of 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
Close to 80 of the portfolio relate to Africa
35 of total investments went to African
infrastructure
10
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 priorities
• Donor harmonisation working together blending
  resources

11
EIB lending in South Africa

• EIB is supporting South Africas economic
  development since 1995 EUR 2 bn cumulative
  lending at the end of July 2009

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

Loans can be extended in ZAR
12
EIB lending in South Africa (2)

• 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

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