The FINANCIAL — On 12 November, 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.
Guarantees agreements include the earlier announced €400 million guarantee – that complements the additional €100 million EU grant announced on 12 November – 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.
All these guarantees are part of the Team Europe response to COVID-19 – a package of combined support for the partner countries from the EU, its Member States, and European financial institutions. They also mark the successful completion of the EFSD and will bring much-needed investment to partner countries in Africa and the EU Neighbourhood.
These guarantees are part of the EU External Investment Plan, which is mobilising more than €50 billion in public and private investment for sustainable development in countries neighbouring the EU and in Africa using €5 billion in EU funds under the EFSD.