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European Financing Partners replenished with 225 million euros

14/12/2010

The European Investment Bank (EIB) and the European Development Finance Institutions (EDFI) agreed to replenish the co-financed facility European Financing Partners with 225 million euros to finance private sector investments in Africa, the Caribbean and the Pacific (ACP).

Press Release 8 December 2010EFP logo1.jpg

EDFI members and the EIB signed a new Master Investment Agreement for European Financing Partners S.A. (EFP) on December 8 at a meeting in Paris, committing an additional 225 million euros to the investment matching facility. The funding will be provided by the Cotonou Investment Facility through the EIB (100 million euros) and by following EDFI members (125 million euros): BIO (Belgium), CDC (United Kingdom), COFIDES (Spain), DEG (Germany), FINNFUND (Finland), FMO (the Netherlands), NORFUND (Norway), PROPARCO (France) and SWEDFUND (Sweden).

The EFP initiative was created in 2003 with the double aim of promoting sustainable development of the private sector in ACP States and strengthening co-operation between eligible European Development Finance Institutions and the EIB.

EFP is a Luxembourg-based investment company and has since approved financing to 29 private sector enterprises in Africa, the Caribbean and the Pacific at a total amount of 392 million euros.

An evaluation of EFP undertaken by the Operations Evaluation Department of the EIB in 2009 concluded that “the EFP initiative is clearly in line with European development cooperation polices and with a number of joint statements on aid harmonisation put forward by the international community. It has also been a concrete step forward in implementing the Framework Agreement on financial co-operation and exchange of services signed by the European Partners in 2003. This evaluation has highlighted that, while sharing the common objectives of EFP, its members participate with their own institutional agendas: larger partners focus on financial leverage and risk sharing while smaller partners focus on the exchange of experience and best practices. These diverse strategic objectives are not only coherent with the objectives of the EFP, but greatly contribute to achieve them. Through its operation, the EFP has proved to be an effective and efficient instrument in strengthening cooperation among partners."

EFP has financed projects in 15 ACP countries in the following sectors: Industry, power, financial intermediaries, communication, agribusiness, container terminal, air transport and health.

Martin Curwen, outgoing Director General for EIB Operations outside the EU, and Nanno Kleiterp, the Chairman of EDFI, expressed their commitment to the EFP initiative at the signing ceremony in Paris.

Martin Curwen said, “We at the EIB have been encouraged by the manner in which the EFP initiative has been utilised to date to fund private sector projects in the ACP regions which foster economic growth and lead to an overall reduction in poverty. These are precisely the lending objectives of the EIB in the ACPs and we are delighted to show our support for this European collaborative initiative with a further injection of capital of 100 million euros."

The Chairman of EDFI said that “EFP has contributed to increasing the visibility of European development cooperation. Extensive harmonisation of guidelines, procedures and processes among the partners has made EFP a very efficient vehicle for co-financing, which will ultimately benefit entrepreneurs in emerging markets who are looking for long-term financing to grow their businesses.”

 

For further information, please contact:

EIB, Richard Willis, tel. +352-4379-82155, willis(at)eib.org

EDFI, Jan Rixen, tel. +32 2 230 2369 jan.rixen(at)edfi.eu

Finnfund, Helena Arlander, tel. +358 9 3484 3355, helena.arlander(at)finnfund.fi